Prepare
To prepare for the Notify and Settle stages there are many documents you will need to locate or obtain.
- Death Certificate – The most important thing in this step is to get certified copies of the death certificate. You will need it more often than you think during the Notify stage. Most funeral homes will give you one or two copies of the death certificate but you are going to need anywhere up to 20 copies, especially if the deceased had a lot of assets or debt. To get your certified copies, visit your city clerk’s office or contact the Office of Vital Statistics. Copies can cost anywhere from $5 to $20.
- Letter of Testamentary or Letters of Administration – Whenever you need to contact any of the deceased’s creditors, or other financial institutions, you will need documents to prove that you are the executor of the estate. The proof they require is a Letter of Testamentary or Letters of Administration. Getting them requires some legal filings so the easiest route is to get a probate lawyer to get these for you, but if not, your first step will be to file a probate petition. If you are the executor of the will, just take a copy of the will to your local court in order to file a probate petition. The will is then validated for authenticity and, once confirmed, you will then receive the Letters of Testamentary. Be sure to get multiple copies. If the deceased did not leave a will and you are the spouse or next of kin, you can have the court provide Letters of Administration that will make you executor of the estate in order to conduct legal business on behalf of the deceased.
- Consult a Lawyer – Even if you decide in the end not to hire an attorney, you should always at least consult with one in matters of the estate. As executor of the estate, if you don’t handle something properly you could be held liable. Often during times of grief it’s difficult to handle details such as these and hiring an attorney can be the best thing for you. Choose a board certified attorney who handles wills and trusts.
- Locate Important Documents – Depending on how good the deceased was at record-keeping, this could be an easy or a very difficult task. Regardless of complexity, you will be expected to provide relevant documents when necessary. The type of documents you will need, in addition to the death certificate and Letter of Testamentary, include: life insurance policies (as well as auto, homeowners, and health insurance policies, etc.), most recent credit card statements, documents on any investment accounts, most current statements from all checking and savings accounts, most recent mortgage statement, tax returns for the past two years, current credit report, marriage licenses and birth certificates.
Notify
Now that you have in hand all the important paperwork you will need, you can begin to contact the deceased’s creditors, financial institutions, and more, to notify them of the death.
- Social Security Administration – There are two good reasons to contact the SSA. First, you will receive a one-time benefit of $255 which can help toward funeral expenses. Second, the deceased will be placed on the Social Security Master Death Index which will safeguard the good name of the deceased so that no one can collect social security payments in their name.
- The Employer – Contacting the employer is a courtesy so that the company is made aware and can begin filling the deceased’s position. You can also find out if the deceased had any bonuses or perks that you should still expect to receive.
- Insurance Companies – Some insurance companies, like auto, you should contact simply so they discontinue billing. Of course, others like life insurance will need the paperwork from you so that they can disburse payments.
- Credit Bureaus, Creditors and Credit Card Companies – By contacting the credit bureau, you can safeguard the deceased from future fraud as well as eliminate those pesky pre-approved credit cards that come in the mail (creditors use the credit bureau to determine credit worthiness of individuals and then randomly send out this mail which they won’t do if they see that the individual is deceased). Credit card companies need to be made aware so they can stop billing and many of them have insurance plans that will write off the debt in the case of death.
- Post Office – You should complete a change of address for the deceased so that any incoming mail will be sent directly to you as the executor of the estate.
- Utility Companies – Again, you will want to stop billing to save the estate money.
Settle
In the Settle stage you will cancel accounts, memberships and subscriptions (or transfer accounts that you wish to keep). You should also check on legalities regarding transferring mortgages and other assets that you will be retaining, as different states have different laws requiring whether the title documents need to be transferred out of the deceased’s name.
You will also need to apply for any benefits due to beneficiaries and pay any final bills. You may want to employ a reputable CPA who can file a final 1040 for the deceased, as well as a Form 1041 (estate income tax return). Finally, to safeguard the deceased from future fraud, complete the obituary with as little information as possible, and be careful what you post on social media.