When a loved one has passed away
Trusts and Estate Plans are created to legally document one’s wishes in a clear manner so that the process of administering a trust and distributing assets is as seamless as possible. When a loved one passes away, however, there are still important steps to take in order to wrap up affairs properly. Here is a post about some of the action items that you will need to take and where an attorney or other professionals may come into the picture.
First, it is important to note that although there is work that needs to be taken care of, you can take your time to process the loss. Whether the loss is expected or sudden, you should take the time that you need to grieve.
Likely, the funeral home has contacted Social Security Administration (SSA) to notify of the death, but if this has not been done, this is a first step to take. You will want to order several copies of the certified death certificate (the recommendation is at least five and one death certificate for each property owned), which often are ordered through the funeral home or can be done directly through the county where the loved one passed away. Certified death certificates, rather than just copies, will be necessary for taking your loved ones’s name off of accounts and real property.
Hopefully, a good list of assets has been provided so that you know which financial institutions, credit card companies, and assets were current. We advise all clients to keep their asset list up to date so that these next steps are easier to go through.
-Take name off of or close off credit cards by contacting credit card companies.
-Notify credit reporting agencies of the death. Credit reports and files are not automatically closed when someone passes away. To ensure that no one tries to fraudulently open up lines of credit, this step is important.
Here is the current contact information for the three biggest credit agencies. Experian (888-397-3742), Equifax (800-685-1111) and TransUnion (800-888-4213). Request the credit report is flagged as “Deceased. Do Not Issue Credit”.
-Contact relevant retirement plan administrators, life insurance administrators to roll over plans or start claims.
-For banks and brokerages, you will want to contact them to remove the person’s name from the accounts, close accounts, and potentially open trust accounts, if needed.
-When the taxes are filed next year, there will need to be a notation that he has passed. It is good to consult with your CPA or accountant about whether there are additional tax forms that are necessary for your loved one’s particular situation (e.g. IRS Form 706).
You are not alone in this process. Your accountant or financial advisor can guide through concerns about taxes and financial accounts. Your attorney can work with you to determine who needs to be contacted, if legal documents need to be updated, whether probate will be necessary (hopefully, the trust was funded so this is not an issue!), drafting and recording deeds and related paperwork, as well as administering the trust. Trust Administration can vary in amount of complexity, depending on the trust terms.
We are here to help with making sure the trust is administered appropriately, taking as much stress off your shoulders as possible. Though there is still work to be done when a loved one passes away, if thorough preparations where made ahead of time, administration is likely to be much smoother than if probate is necessary.