When A Loved One Dies

When a loved one dies, people often ask, “What do I do now?” In addition to the personal grieving and emotional adjustments required, many important financial tasks and issues must be handled. If you have some responsibility for helping settle the estate of the deceased, the following nine-step checklist may be helpful to you:

1. Consult an attorney, life insurance agent, and accountant. You will probably need advice on matters such as life insurance; re-recording property deeds; disposition of stocks, bonds, and savings accounts; and conservation and disbursement of the insured’s estate.

2. Locate important documents needed to claim death benefits and to value the estate, including:

• Life, accident, sickness, disability income, and other insurance policies
• Business agreements, such as partnership contracts
• Financial documents, such as bank books, notes receivable, notes payable, and securities certificates
• Real estate deeds
• Wills and trusts
• Copies of recent income tax returns
• Marriage and birth certificates
• Military discharge papers
• Veterans Affairs (VA) claim number
• Social Security number
• Automobile registration
• Installment payment books

3. Obtain certified copies of the death certificate. The death certificate is the basic document you will need to submit with claim forms to offer proof of death. Death certificates can be obtained for a small fee from the office of the registrar of vital statistics in the town, village, or city where the death occurred. The funeral director can help you in obtaining death certificate copies. In many cases, a photocopy of a legal document will not be accepted because it lacks the raised registrar’s seal that makes it valid.

4. Apply for death benefits. You will need to fill out applications in order to receive death benefits from government agencies like the Social Security Administration, civil service institutions, and the local Veterans Affairs office. Other organizations that will require similar applications include unions, service organizations, automobile clubs, and professional organizations.

5. Retain and identify incoming mail. Keep and review all mail addressed to the deceased person and make payment arrangements for bills. Some bills may be covered by credit life insurance, which pays the account when the customer dies.

6. Contact the deceased´s employer or business associates. The deceased person’s employer or benefits office can provide information on how to apply for death benefits that may be available.

7. Review old records and files. Take time to go over at least 13 months of cancelled checks for information about any additional assets, benefits, or obligations.

8. Put off major financial decisions. During the first months of bereavement, emotional distress is high, and it is a good idea to postpone any major financial decisions. Take the time you need to think carefully about your future and seek competent advice.

9. Review your will, life insurance, estate plan, and beneficiary designations. After the death of a loved one, review your own personal documents to ensure that your survivors will have few obstacles to encounter in the event of your death. Keep a written record of your legal and financial papers and make those closest to you aware of arrangements that you have made.