What to Do After the Loss of a Loved One
The inevitability of loss is what makes us human. At some time in our lives, we will lose someone we love. Far too often the trauma of death is compounded with the overwhelming responsibility of closing out that person’s life. Dealing with end-of-life care and funeral plans is challenging enough, but then settling a loved one’s estate is yet another daunting task at a difficult time.
The good news is, you don’t have to do it alone. There are many things to attend to after the loss of a loved one. This article details a few practical tasks to guide you through the estate administration process.
Step 1: Grieve
Grief is a natural part of loss, but it often clouds judgment and accelerates family conflict. Give yourself some time to let it all go before you have to start worrying about what comes next. Allow yourself some time and give yourself space to grieve.
Step 2: Locate Important Documents
After the loss of a loved one, it is important to locate his or her estate planning documents, if possible. Estate planning documents such as an original will are important in determining funeral plans and afterlife wishes such as the distribution of the deceased’s estate. We encourage you to look for the following documents:
A Last Will and Testament and/or a Trust
All Insurance Policies (Life, Homeowners, Health, Disability, Auto, etc.)
Credit Card Statements and an Up-to-Date Credit Report
Investment and Retirement Accounts Such as IRAs, 401(k) plans, Mutual Funds, Pensions, etc.
Most Recent Checking and Savings Account Statements
Most Recent Mortgage Statements
Most Recent Tax Returns (Two Years)
Marriage Certificate(s) and Birth Certificates of the Decedent’s Children
You will also need to order the Original Death certificate(s). We encourage families to order seven to ten death certificates. More if there are a lot of accounts to settle.
What is Most Important?
The most important thing to do is to determine whether the deceased left a will and/or a trust. If there is only a will, notify the Personal Representative named in the will. He or she is responsible for taking the last will and testament to probate court to prove the validity and oversee the distribution of assets to the beneficiaries. If there is a trust, contact the trustee right away. The trustee is responsible for managing and distributing the trust.
Are you serving as the successor trustee for a loved one? Download our Free Trustee Toolkit to guide you every step of the way. It includes a checklist, successor trustee acceptance form, trust inventory spreadsheet, trust distribution schedule spreadsheet, and video walkthroughs with our guidance and support delivered right to your inbox.
Step 3: Protect the Assets
An “estate” includes all of the assets and liabilities left by a person at the time of death. Your assets can range from anything you own such as real estate and bank accounts to things you could have an interest in, like investment accounts or retirement accounts.
Taking an inventory of what your loved one owned, determining how they owned it, and “guesstimating” the value of the asset will help you in administering the estate. How the assets are titled will affect how they are distributed. An inventory of your loved one’s assets makes sure they are protected. It is essential that assets are distributed according to the terms of a will or trust. It is illegal to distribute assets without going through the proper channels.
Step 4: Consult a Lawyer (Even if You Don’t Use One)
After the loss of a loved one, the personal representative/trustee should consult with a lawyer.
After you locate important documents, an attorney can advise you regarding your specific situation. The most important determination is if you need to go through the probate court to distribute the estate. A lawyer will also be able to advise you on the correct and legal way to distribute the estate which can protect you from unwanted legal issues. If your loved one had a comprehensive estate plan, you probably will have a smooth process, but if your loved one dies without a will, the process becomes more complicated.
What to Remember
The trauma of a loss is hard, but following these simple tasks can help minimize your stress. Remember to grieve and take your time to process. Make sure you locate important financial and estate plan documents after the loss of a loved one. Take time to create an inventory of your loved one’s assets and determine the asset ownership. Finally, consult with an attorney after you have compiled your loved one’s important documents.
Rilus Law is here for you. If you have recently lost someone you love, consult our Free “Loss of a Loved One” checklist by clicking here. You can also schedule a Family Administration Session to talk with an attorney to determine the next steps to administering your loved one’s estate.