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After
a loved one dies, you have to cope with
grief. And yet, if you have even partial
responsibility for settling an estate,
you have no choice but to focus on some
financial matters. By handling these
issues as efficiently as possible, you
can help ease some of the strain that
everyone in your family is feeling.
Ideally, of course, you
should learn as much as you can about
your loved one's financial affairs while
he or she is still alive. This may not
be a comfortable conversation to have,
but it is necessary. If you have a good
relationship, you should be able to ask
sensitive questions, such as: Do you
have a will? What about a living trust?
Do you have a safe deposit box? What are
the names of your brokerage and bank?
The more you know about your loved one's
situation, the better off you will be
when it's time to deal with the estate.
When that day arrives, what
steps should you take? Here are a few to
keep in mind:
-
Find the will. Obviously, it is a
lot easier to locate a will if you
learned its location while your
loved one was still alive. When you
do find the will, you may want to
contact an attorney who is
experienced in settling estates.
Even a well drafted will might offer
options that an attorney can help
you understand. Although you might
want to work with the attorney who
drafted the will, you are certainly
not required to do so. If you do not
have an attorney, ask friends or
your financial professional for a
referral. If you are the executor,
you have to start the process of
carrying out the will's
instructions. If you are not the
executor, contact the person who has
been named to this position.
-
Inquire about probate. Contact your
attorney or the state's probate
court clerk to determine if probate
is necessary. If it is, the executor
or executrix should initiate
proceedings right away, because
probate can be time-consuming.
-
List assets. Try to find the
paperwork for the deceased's
financial assets: bank accounts,
securities, real estate, insurance
policies, retirement plans, etc.
Take special note of who is the
beneficiary of these assets; the
naming of a beneficiary can even
supersede instructions on a will.
-
Notify relevant agencies. Notify
creditors, banks, the Social
Security Administration and other
entities about the death of your
loved one.
-
File life insurance claims. An
insurer does not automatically pay
benefits upon the death of the
insured. Contact the deceased's
insurance company and file any
required insurance claims.
-
Open a checking account for the
estate. It may seem like a strange
job to do, but if you are the
personal representative or executor,
you might want to open a checking
account in the estate's name. Use
this account to pay any bills or
deposit funds received while the
estate is being settled.
-
File tax forms. You may have to file
state and federal estate and income
tax returns. Your attorney and tax
advisor can help you in this matter.
Settling the estate of a
loved one will never be a happy task.
But if done right, it can show respect
for the memory of the deceased, a worthy
goal. |
