When a close friend or family member passes away, the days and weeks immediately after are often full of grief. The last thing that you want to do is wonder about what comes next.
After the death of someone close to you, we recommend that you speak with an experienced estate attorney before taking any major financial actions on behalf of the deceased person (such as closing accounts, distributing physical possessions, making distributions, etc.). Barring an exigent circumstance, major actions do not have to happen immediately but can wait a few weeks while you focus on grieving with friends and family.
That being said, there are a few considerations below to take into account when you are navigating those first few weeks and preparing to begin wrapping up your loved one’s affairs.
Locate their Estate Planning Documents
If you are able, search for the physical originals of your loved one’s estate planning documents. Check the places where they kept their important documents such as filing cabinets, a home safe, fireproof box, bank deposit box, etc.
It is vital to have the original versions of your loved one’s estate planning documents. Make every effort to locate them, and once you do, ensure that they are kept in a secure place. If the physical originals are lost, misplaced, or destroyed, it can make the administration of their estate much more difficult.
Secure and Maintain the Property and Residence
Ensure that the physical residence (and everything inside) is secured. This includes both the external locks, important documents (as discussed above), and any valuables inside. In some cases, it may be prudent to change the external locks to the residence and reset the garage door code if you are the one responsible for administering the estate.
Additionally, ensure continued payments of the mortgage, insurance, property tax, utilities, etc. Whether the residence is passed along, or eventually put on the market for sale, it should be kept up so that it does not deteriorate.
Keep Receipts for Estate Expenses
It can be difficult to get immediate access to your loved one’s financial resources, even to pay funeral and burial expenses. If you are in a pinch and need to cover some expenses yourself, keep your receipts and begin a log of all expenses you have paid on behalf of your loved one’s estate. As long as your expenses are reasonable (e.g., not buying a mink-lined coffin), you will be reimbursed in full once someone gains access to funds.
Order More Death Certificates than You Think
Death certificates contain a lot of important information, and many institutions want copies. Generally speaking, it is more cost effective to order more copies that you anticipate needing rather than to come up short and have to reorder more copies at a later date.
The rule of thumb is that each institution you’re dealing with (banks, investment firms, retirement accounts, life insurance, etc.) may want a physical copy, and 15-20 copies should be sufficient in most situations. For estates that are more complicated, or with a large number of accounts across many institutions, consider requesting even more.
Gather Information, Questions, and Prepare to Meet with an Attorney
Once you are ready, meet with an attorney experienced in estate administration to get you going in the right direction and to bring your attention to high-priority items. To get the most out of your meeting, we recommend creating a list of questions and gathering important papers from your loved one’s residence.
As you search, begin compiling a list of all assets and accounts that could potentially be in your loved one’s estate. Bring the documentation that you have for each account and keep record of important information such as account numbers, institution names, and the value of the account.
If your loved one had an estate plan, read through the documents, and any supplemental materials that may be filed with their estate plan. As you read, do not write on the original estate planning documents, but keep a running list of questions for your meeting with an attorney regarding your new role.
At the meeting, the attorney should talk through your responsibilities, which steps you need to take next regarding notifying banking or investment institutions, employers, the IRS, etc. and help you feel confident that you know the way forward.
The death of a close friend or family member can be overwhelming, especially if this is the first time you’ve had to deal with administering an estate. If you are in that situation, we’d love to work with you as you navigate the process. Whether you want to meet once to get your bearings, ask for occasional help, or have us guide you step-by-step through the entire process, contact our office to get started.