The death of a loved one is incredibly difficult. And trying to tie up all the loose ends after their passing can be overwhelming and very stressful.
There is so much to do in the midst of your grieving, especially if you’re the one in charge of cleaning up the estate. Having to figure out what needs to be done during the grieving process is inhumane. So, once you are in the right headspace, make sure that you don’t leave your loved ones stressed out during the grieving process. Learn how to estate plan here.
Now, this obviously doesn’t make the process any easier, but something about having a list does slightly relieve the stress of figuring out what to do next. Download the free PDF to get a printable checklist of the steps below.
1. OBTAIN DEATH CERTIFICATES
Typically, the funeral director will help you obtain the death certificate. However, you can also get copies by ordering them from the Vital Records Office in the state the death occurred.
You will want to make many copies of the death certificate. Completing a lot of the tasks on this list requires a copy of the death certificate.
This depends on the number of accounts and items that are in the deceased’s name, but a good number to have is ten copies of the death certificate.
You need the death certificate for probate/court process, canceling bills and services, alerting financial institutions, filing insurance claims, terminating insurance policies, notifying government agencies, alerting credit reporting agencies, and filing the tax return. So… yeah, you need many copies.
2. LOCATE WILL AND ATTORNEY
If your loved one had an estate plan, this will likely include a will. The will usually appoints an executor to the will or a personal representative. This appointed person will need to be involved from here on out. The person appointed is the person your loved one wanted to be in charge of handling and distributing assets.
Now, many times people appoint an executor or representative that is outside the immediate family. This is to relieve the burden on those who are grieving and give the responsibility to someone that can handle it for them.
If there is no will, the court will likely name an executor to handle the estate and decide how to disburse the assets. This is a very difficult process. Especially if there are many family members to disburse assets to. Trying to decide what the deceased loved one would’ve wanted is mentally straining… so please don’t do this to your loved ones. Start an estate plan as soon as possible.
An estate attorney can help alleviate this difficulty. It isn’t necessary to get an attorney if the estate is simple or small, but it does help. If the estate is complicated or large, you will definitely want to meet with an attorney. Hopefully the deceased already had one picked out for you to meet with.
3. TAKE INVENTORY OF ALL ASSETS
This step is particularly if there isn’t a will, or if the will doesn’t state all the assets. The probate process usually starts with an inventory of assets. This is to designate the distribution of assets to the beneficiaries.
Having a current list of assets is HUGE in the estate planning process. Making your list of assets is hard if you have many different assets to locate.
This list of assets is also beneficial, because, unfortunately, when someone passes it can be an invitation for theft. This theft can either be from criminals, or family members claiming sentimental or financially valuable assets.
4. PAY BILLS AND CANCEL SERVICES
Another list to make is a list of bills to be paid. Having this list of bills makes it easy to determine which services are no longer needed and can be canceled.
Building this list helps to not miss any payments, which prevents future headaches. Canceling the services as soon as possible also helps save money on unnecessary payments.
5. ALERT FINANCIAL INSTITUTIONS OF THE DEATH
Alerting financial institutions about the passing of your loved one will help them begin the process of transferring accounts. This process is much easier if there was a list of financial assets prior to the death.
Financial institutions to notify are banks, investment companies, retirement companies, and credit card companies. The financial institutions can help you determine who was listed as a beneficiary on the account, but you will need to provide a copy of the death certificate.
6. CONTACT INSURANCE COMPANIES
Before you terminate any insurance policies, there may be claims that you need to file. These claims depend on the situation but definitely file for the life insurance policy. Other claims could be health or cancer insurance policies if the deceased has a policy that reimburses medical expenses.
After all relevant claims are filed, begin terminating insurance policies. This includes health/cancer, home, auto, renter, and other policies that the loved one may have had.
7. PUBLISH A NOTICE OF DEATH TO CREDITORS
Formally publishing a public notice to creditors informs any creditors of the estate and gives them the opportunity to submit outstanding debts.
This process is often overlooked, but pretty important. Making a public notice prevents creditors from surfacing several months or years later demanding payment and forcing the heirs to reopen the estate.
8. NOTIFY GOVERNMENT AGENCIES
Normally, the funeral director will notify the Social Security Administration of the death. However, it is always beneficial to double-check. Next, notifying the IRS is necessary if a tax id is required for the estate.
Other government agencies to notify are those that send benefits to the deceased. For instance, Medicare, Veterans Affairs, etc.
Next, contact the Department of Motors to cancel their driver’s license and voter registration. Also, inform the post office on where to forward the deceased’s mail. This step will also help you cancel any subscriptions or services that you missed in step four.
9. NOTIFY CREDIT REPORTING AGENCIES
Sadly, another thing that death opens the door to is identity theft. To help prevent this, you should notify credit reporting agencies such as Equifax, Experian, or TransUnion. Again, you will need copies of the death certificate to do this.
It’s smart to periodically check on your loved one’s credit report. If fraudulent accounts are open under them, then you will want to notify the agencies as soon as possible.
10. PREPARE FINAL TAX FILING
Lastly, final tax returns need to be submitted for your loved one. This could simply be filing the final individual tax return. Although if the estate was bigger, then there may need to be an estate tax return filed as well.
Get with either your trusted tax preparer or your loved one’s preparer to begin these tax filings. Completing this step earlier rather than later will make the process easier.
These steps are mainly targeted for the financial clean-up of the estate. One step that wasn’t emphasized was the importance of taking care of yourself during this process. Recognize that everyone grieves differently. Don’t forget to attend to your grieving needs and reach out for help when you need it.
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