By Heather A. Timmins
Attorney at Law, Grefe & Sidney, P.L.C.
The death of a loved one is often met with a period of grief and adjustment. Determining what must be done to close out a decedent’s financial affairs can be overwhelming, especially during this time. The following are some steps that should be considered when a loved one dies:
Final Arrangements
The most immediate task that must be dealt with is making the final arrangements and notifying others of the death. Your loved one may have left specific written funeral/burial or final disposition instructions with a list of people to be notified. You should contact the funeral home to discuss funeral arrangements and inquire whether any preplanning was done by the decedent, including whether any prepayments were made.
Contact the Decedent’s Financial Advisor
Often times, the first non-family call that someone makes is to the decedent’s financial advisor. They can help guide you through the process and will often know what type of investments and policies your loved one had. They also may have the names of the key individuals you may want to contact. The financial advisor can also help with the transfer of accounts held in the decedent’s name.
Who is in Charge?
Usually, one person supervises the tasks of settling an estate. If your loved one had a Will or Trust, these documents will specify who will serve as executor or trustee. The person named will be responsible for settling the estate, including locating assets, paying creditors, and distributing assets. If no Will or Trust was executed, an Administrator may need to be appointed by the court in order to facilitate the distribution of assets.
Locate the Will or Trust
The decedent’s attorney should be contacted to coordinate the probate process and determine if probate is required or not. The original Will or Trust may be in a safe-deposit box or in the decedent’s home. If there is no Will or Trust, the property will be distributed according to state law.
Obtain the Certified Death Certificate
You can obtain death certificates through the funeral home or the local office of vital statistics. Many agencies and companies only accept certified death certificates, so you may want to obtain several copies.
Income
If your loved one was receiving income from an employer, a pension, the Social Security Administration, etc., the payor must be notified of the death.
Notify Employer
Notify the decedent’s current and past employers in case there are any death benefits or continuing medical benefits for dependents. The estate may be entitled to life insurance proceeds, retirement plan contributions, accrued vacation and sick pay time, unpaid commissions, disability income, etc.
Notify Insurance Companies
Determine what forms must be completed to obtain insurance benefits. If you think the individual had a life insurance policy but you are unable to locate it, contact the agent who sold the policy or try using an online insurance policy locator service, which may be able to locate a lost policy.
If the decedent owned a retirement account, such as an annuity, IRA, 401(k), or other retirement accounts, the contract should be carefully reviewed to ensure that any amounts payable to a beneficiary or the decedent’s estate are collected. There can be minimum distribution requirements and tax consequences based upon how and to whom the proceeds of a retirement account are paid, including the final payment due the decedent in the year of his/her death.
Contact the Department of Veterans Affairs
If the decedent was a veteran, the survivor may be entitled to certain monetary benefits and burial assistance.
Additional Parties to Notify
Upon the death of a loved one, steps should be taken to notify anyone who conducted business with the loved one that he or she is deceased. This would include credit card companies, banks, TV, telephone, or internet providers, utility companies (unless needed to preserve the condition of the real estate), subscriptions, clubs and memberships, etc. Due consideration should also be given to automatic withdrawal accounts, and you may need to cancel the automatic payments before closing the account from which they are drawn. The Post Office should also be notified if mail needs to be forwarded somewhere else.
Secure Digital Assets
If the decedent had any computer or online assets or information, such as photographs, media, electronic tax returns and records, E-bank accounts, Pay Pal accounts, etc. steps should be taken to secure passwords and/or access to these records and accounts and make arrangements to stop any and all recurring automatic payments.
The above is a non-exhaustive guide of initial steps to take when a loved one dies. Additional action may be required based upon the kind of property owned by the decedent and how the property is titled. An attorney experienced in probate and estate planning will be able to help guide you through this process.
Heather Timmins is an attorney and partner at Grefe & Sidney, PLC in Des Moines. Heather practices primarily in the areas of probate, estate planning, guardianships, elder law, real estate and business law. Heather’s goal is to help clients efficiently and effectively resolve legal challenges, including those surrounding a loved one’s death, or to help them make decisions which will avoid such problems before they even arise. Heather can be reached for questions at 515-245-4300 or htimmins@grefesidney.com.
The contents of this update are intended to provide general information only and are not intended to be relied upon as legal advice. Readers should consult legal counsel for specific advice.