Five Financial Steps to Take When a Loved One Passes

If a loved one has recently passed in your life, all of us here at American Heritage offer you and your family our sincerest condolences. Loss is never easy, and we are here to support you all as you go through this difficult time.

When you feel prepared to take on the task of settling matters for your loved one, there are several steps you should take regarding their finances. It’s totally normal to feel overwhelmed during this process, but with patience and proper planning, you’ll be able to navigate it with confidence.

Take the Time You Need for Yourself

While you shouldn’t delay in handling the financial matters of your deceased loved one, it’s crucial that you take the time that you need for your own mental health. Jumping into these items immediately could easily lead to mistakes or missing pieces of information.

But above all, your own mental health and well-being is most important. Once you feel prepared to take on these items, set aside time to map out each step. Remember, this isn’t a process you’ll complete all at once. Take short breaks as you see fit, and rely on family and friends for support as needed.

1. Obtain Multiple Copies of the Death Certificate

First and foremost, you’ll first need to have several copies of your loved one’s death certificate. Aim to have anywhere from 10 to 15 copies on hand for these purposes. This is an official proof of death and will be needed to complete tasks like closing out accounts and claiming life insurance.

Some institutions that would need this document, and their purposes behind this, include:

• Insurance Agencies – they will need this proof to verify the claim and provide funds to the beneficiaries

• Financial Institutions – this document allows them to unlock funds and distribute them to the identified parties

• Mortgage Company – if the deceased had any real estate in their name, the mortgage company will need this document to transfer the title

Additionally, you may need to notify the Social Security Administration if your loved one was receiving benefits. They’ll be able to stop these payments and ensure that survivor benefits kick in for you or their designated beneficiaries.

2. Find and Organize Their Financial Documents

The early stages of this process include quite a bit of paperwork. The death certificate isn’t the only document you’ll need to complete these affairs. You’ll also need:

• Their will or trust, which are legal documents that outline how assets are to be distributed
• Any bank and investment account statements
• Copies of any insurance policies they may have
• Copies of their tax returns
• Any documents tied to their properties, like deeds or titles

It can be complicated to locate these documents, especially if they aren’t kept in a secure, consistent space. If you can, work with family members or close friends of your loved one, who may have better ideas as to where these documents might be.

3. Notify Financial Institutions and Government Agencies

Once you have all the documents in order, you’ll want to notify the organizations that your loved one had accounts with or was receiving benefits from. These include:

• Any credit unions and/or banks they may have had accounts with
• Credit card companies they had accounts with
• Social Security Administration
• Their insurance provider

Additionally, you’ll want to notify the administrator of their retirement plan or pension. This will allow the beneficiary of their retirement plan to receive the designated assets.

All of these organizations are also prepared for this time in your life. Banks and credit unions should have a form available where you can begin the process of closing your loved one’s accounts. If this individual happened to be a member of American Heritage, the Member Services Request Form, as well as other required documents, can be accessed here.

4. Work with Estate Professionals

There are a few professionals you’ll want to work with at this time. These individuals have the expertise and tips you’ll need to ensure you don’t miss any steps of the process. Some of the experts you should work with include:

• An estate attorney, who can help guide you through any legal issues including probate, which is the legal process of verifying a will and settling their affairs
• A tax professional, who can assist with processing final tax filings. This will help you make sure nothing is missed and all relevant laws are followed.

5. Revisit Your Own Financial Affairs

As you complete these tasks, it may recall your own affairs. This would be the perfect time to update these items and get everything in order. You may want to:

• Update your will, including any details around beneficiaries or power of attorney
• Consider creating a trust, if you want your loved ones to avoid probate
• Review your insurance coverage
• Review your retirement plan, and perhaps consider increasing your contribution (especially if your employer offers a company match)

If your loved one has left any assets to you, it may also be a good idea to meet with a financial professional. They will be able to help ensure you’re responsibly handling what you’re inheriting.

*Securities and advisory services are offered through LPL Financial (LPL), a registered investment advisor and broker-dealer (member FINRA/SIPC). Insurance products are offered through LPL or its licensed affiliates. American Heritage Credit Union and The American Heritage Investment & Retirement Center are not registered as a broker-dealer or investment advisor. Registered representative of LPL offer products and services using American Heritage Investment & Retirement Center, and may also be employees of American Heritage Credit Union. These products and services are being offered through LPL or its affiliates, which are  separate entities from, and not affiliates of, American Heritage Credit Union or American Heritage Investment & Retirement Center. Securities and insurance offered through LPL or its affiliates are: 

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