7 Things to do When a Loved One Dies

When you lose a loved one, it's a time flooded with uncertainties. Beyond funeral arrangements and family, how to handle your loved one's finances can also be overwhelming.

The steps below can help you take a systematic approach to handle the financial side of a loved one's loss and take the guesswork out of what to do.

Request Copies of the Death Certificate

"We need a death certificate" is a phrase you'll hear multiple times as you work to wind down your loved one's finances. Banks, life insurance companies, retirement account custodians and more will all need legal proof of death before they can distribute assets.

You can usually obtain copies of death certificates directly from the funeral home and at a nominal cost. If you need to request copies by another means, check with the city clerk or office of vital records where your loved one died.

Locate the Estate Documents

Your loved one's estate documents (a will or a trust or perhaps both) provide a roadmap for action, and you should locate them as soon as possible after the death.

If a will needs to be probated, it should be filed in probate court, after which an executor will be approved. The executor will then be in charge of handling the estate's financial matters and ensuring the beneficiaries receive their bequests. With a will, the approved executor will receive letters from the court that declares them the person legally authorized to act on the estate's behalf. The letters will be requested by multiple entities, including banks, Social Security, creditors and more to confirm authority of the executor to act on behalf of the estate.

Gather Important Financial Documents

If your loved one didn't have a complete list of all their financial accounts, you should consider making one to aid you in determining how the estate will be administered. Locating all accounts might involve going through mail or email, reviewing a checkbook register and credit card statements, and examining things in the home like cable boxes or TV streaming services. You might ask your loved one's employer about benefit plans and insurance coverage provided to them as well.

The following obligations should be included on this list:

• Bank and credit card accounts

• Retirement accounts

• Household bills

• Mortgages and loans

• Subscriptions

• Tax returns

• Insurance policies

With financial accounts, access may be limited to the estate's executor or the trustee of a revocable trust. In that case, you can give the list of accounts to the executor or trustee and they'll be able to handle access with their letters or proof of authority under the trust. Some accounts might have a feature called transfer on death (TOD) or payable on death (POD). If so, assets in those accounts will pass outside of probate or the trust to the person named as the beneficiary (unless the estate or trust itself is named as beneficiary; in which case the terms of the estate or trust will apply).