The loss of a loved one is a deeply personal and difficult experience. Here at M2 Financial, we understand that amidst the grief, there are practical financial matters that need attention. Our checklist can serve as a guide to help you and your family navigate through the initial steps.
GATHERING DOCUMENTS:
Essential:
- Will, Trust, or Estate Documents: These outline the deceased's wishes for how their assets are distributed. If these do not exist, you may be in for a lengthier probate process. If the documents are not readily available, we at M2 can help you explore possible next steps.
- Social Security Card/Number: The Social Security number is usually retired shortly after death, it is a good idea to confirm this with the Social Security office.
Important:
- Account Statements: Gather statements for all bank, investment and retirement accounts.
- Property Records: You will need any deeds or titles to real estate as well as car titles, lease agreements or other proof of ownership.
- Storage Unit Information: Locate any keys and account records for storage units.
- Bills and Debt Records: Gather outstanding bills, credit card statements, loan documents, etc.
Optional, But Helpful:
- Social Media Account Information: Logins and passwords for relevant social media accounts (if applicable).
- Digital Account Passwords: Gather computer files or a printout listing passwords for online accounts. Some families may have already centralized this information.
- Letter of Instructions: This is not a legal document, but it can provide valuable guidance. The document may address specific wishes regarding the estate and can be directed to the executor, family members or beneficiaries.
Manage Financial Matters:
Following these immediate steps, there are financial matters to address:
- Creditors & Credit Bureaus: Notify creditors and credit card companies of the passing. Inform the "big three" credit bureaus (Experian, Equifax, TransUnion) to prevent unauthorized activity on the deceased's credit report.
- Investments & Insurance: Contact financial advisors and insurance providers to understand beneficiary details and tax implications of inheriting assets. They can guide you through the process of claiming life insurance benefits and managing investment accounts.
- Taxes: Handle state and federal taxes owed by the deceased for the year of death. This may involve gathering tax documents and filing tax returns. For complex situations, consider consulting tax professionals.
For Business Owners:
If your loved one owned a small business or professional practice, there are additional considerations:
- Discuss the situation with business partners (and clients) to ensure smooth continuity or transition of the business.
- Consult the attorney who previously advised the business to navigate legal and financial implications of the owner's passing.
Looking Forward:
Remember, you are not alone. M2 Financial is here to provide support and answer any questions that may arise during this process. By dealing with these matters, you can help bring closure and manage the deceased's estate responsibly to ensure a smooth transition. Remember, this guide is for informational purposes only. Don't hesitate to reach out to your M2 Financial Advisor for personalized guidance and support during this challenging time.