The loss of a family member is devastating, emotionally challenging and most often overwhelming. In addition to having to cope with emotions related to losing a loved one, there will be many tasks that need to be completed. The tasks will be vast, from planning the burial to closing credit cards.
While you are grieving, reach out to professionals for guidance and establish a process to organize the deluge of paperwork that will soon accumulate. Consider using the Death Notification Checklist issued by the U.S. Department of Veterans Affairs Office of Privacy and Records Management bit.ly/2USqp7b.
Certified financial planners, estate planning attorneys, and certified public accountants have experience in resolving financial matters following a death. They can help you address many of the outstanding items you are aware of and outstanding items that haven’t occurred to you. They also will identify tasks that you are unfamiliar with. Ask the professionals, “What can you do to help me?”
Where do you begin?
Your funeral director can be an excellent source of information for you. Most funeral directors handle paperwork involved with the person’s death, including submitting papers to state officials and ordering death certificates. Some will even help to resolve insurance claims or apply for veterans’ funeral benefits on behalf of the family.
A CFP can help you understand how your finances will be directly impacted by losing your loved one and guide you through solutions appropriate to meet your future financial needs.
A CFP is a licensed financial adviser who has completed multiple exams over a two-day period on many personal finance subjects, including investments, insurance, and estate planning. Additionally, CFPs work with clients to identify their income, net worth, goals, and objectives.
An estate planning attorney will help you understand the meaning and purpose of the legal documents the decedent had in place and the process necessary to settle the estate. If the decedent did not have any documents in place, an attorney can guide you through the probate or other processes that may be necessary to disburse assets.
They understand how the estate should be inventoried, valued, dispersed, and taxed and will help guide you through these steps.
An estate planning attorney is a type of lawyer who understands how to advise clients on getting their affairs in order to prepare for eventual death and settle the estate following the death. Often, they have years of mentoring, continuing legal education, and experience.
A CPA can explain your income sources as reported on the tax returns. They will prepare the final tax return for the decedent and identify if additional tax returns need to be filed. Additionally, they can run income tax projections and discuss how your filing status will change the following year.
CPAs are trusted financial advisors who have undergone a rigorous CPA exam and met the work experience requirements to become licensed. Their expertise can range from tax planning, forensic accounting, and internal auditing to income tax preparation and planning.
Setting up a simple system early on will help minimize some of your stress by helping you to efficiently manage the tasks that need to be completed. Begin by gathering or purchasing the following supplies:
Three-ring binder(s): These are an ideal tool in storing the paperwork, statements and notes to settle the estate.
Business card holder pages: Place the clear business card holder page at the front of each binder to save the business card or contact information of every person that you meet with during this period.
Lined notebook paper: Write down the names of every organization that you need to contact, including the Social Security Administration, Veterans Affairs, insurance and annuity companies, banks, credit reporting agencies, Department of Motor Vehicles (to cancel driver’s license), credit card companies (to close credit card accounts), membership organizations, and special friends.
Keep track of all incoming and outgoing phone calls. Document with whom you spoke, the phone number, date and time of the conversation, and a description of what was discussed.
Document all pertinent mail, keeping copies of the correspondence. Whom did you send mail to or receive mail from? What was the date? Did you follow up or receive a reply?
Dividers: Use them to identify and store any related paperwork. Until the estate is settled, it is convenient to have statements and completed paperwork readily available.
Clear insert pages: For documents that you do not want to damage, such as original death certificates, marriage certificates, life insurance policies, deeds and titles to property, annuity contracts, etc., slip them into a clear insert and file behind the appropriate tab.
Lastly, avoid making significant decisions for at least six months to one year, especially if the decision is emotionally based.
Settling the estate of a loved one is bound to be stressful and a daunting journey. Having a firm hold on the finances will help guide you to make decisions that you will not regret in the future. Empower yourself early in this difficult period by asking for help and implementing a system to keep you organized.
Teri Parker CFP® is a vice president for CAPTRUST Financial Advisors. She has practiced in the field of financial planning and investment management since 2000. Reach her via email at Teri.parker@captrustadvisors.com.
