Steps to Take when Any Family Member Dies With Checklist

Death of a family member is difficult. This estate plan is meant to make things easier by giving family members who survive step by step instructions to settle affairs and implement the wishes and estate plan of your loved one.

Burial or Cremation

Clearly, when a family member passes away, you must arrange for a funeral and a burial or a cremation. If the family member has not completed the End of Life Planning documents provided in this plan, search the person’s documents to find out whether there was a prepaid burial plan. If your family member has a prepaid burial plan, your job is easier. Simply call the company that issued the policy or plan and the company will walk you through the next steps to follow.

Often, the death of a loved one is very upsetting. When people are upset, they do not think clearly. You should ask a friend or family member to be present whenever you are being asked to make a decision, especially a financial decision, related to burial or cremation.

Prepare an Obituary

An experienced funeral director can provide a variety of helpful services beyond the obvious ones, including making transportation arrangements, coordinating with other funeral directors (if, for example, the burial is to be in another city or state), notifying government agencies, preparing obituary notices, etc.

Obtain death certificates (usually from the funeral home). Get multiple copies; you’ll need them for financial institutions, government agencies, and insurers.

Know the person's wishes

Know the location of the will, birth certificate, marriage and divorce certificates, Social Security information, life-insurance policies, financial documents, and keys to safe deposit box or home safe.

Ask the person’s wishes about funeral arrangements, organ donation, and burial or cremation.

Make sure the person gives copies of the documents to his or her doctor and a few family members or friends. Take the documents to the hospital if the person is admitted

Gather All Important Documents

The decedent’s financial and other records must be gathered for the purposes of probating the estate and preparing the decedent’s and the estate’s income tax returns.

In searching for these and other important documents, check safe deposit boxes, desk drawers (both at work and at home), briefcases, lockers, safes, etc. Also, keep a careful eye on the decedent’s mail. Never throw out official-looking documents.

The following list includes most documents and pieces of information that are commonly considered important:

• Address books

• Automobile titles

• Bank statements

• Business records (if self-employed)

• Check register (current year)

• Contracts

• Funeral instructions

• Life insurance policies and annuities

• Notes payable

• Notes receivable

• Partnership agreements

• Past employment information

• Pension information

• Real property deeds

• Retirement account statements

• Securities statements

• Stock certificates

• Tax preparer's or accountant's name and address

• Tax return source documents (current year)

• Tax returns (last three years)

• Trust agreement

• Unpaid bills

• Will

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Notify the Decedent's Attorney

If the decedent had a will or owned property outside of a trust or joint tenancy arrangement, his or her estate will probably be subject to the legal proceeding known as "probate." Through probate, claims against the estate are settled, and the decedent’s remaining property is distributed in accordance with the instructions contained in his or her will, all under the supervision of the probate court.

Though it is possible to handle a probate without the assistance of an attorney, people who are not familiar with the process will find it frustrating and very difficult. Even when the estate does not utilize the services of an attorney, you should at least contact the attorney who prepared the decedent’s will, if for no other reason than to review any documents that the attorney may have in the decedent’s file.

Contact Social Security

If the decedent has paid into Social Security and accumulated the minimum number of work credits, survivor benefits can be paid to certain family members. These include widows, widowers, children, dependent parents and, in some cases, surviving divorced spouses.

If you were not receiving Social Security benefits when the decedent passed away, you should apply promptly. You can apply online, by phone (800-772-1213) or at any Social Security office.

If you were already receiving Social Security benefits on your spouse’s record when he or she died, report the death to Social Security and they will change your payments to survivor benefits.

If you are already receiving Social Security benefits on your own record, you’ll need to complete an application to receive survivor’s benefits. A copy of your spouse’s death certificate will be required.

If the Decedent Was a Veteran, Contact the Veterans Administration

Veterans’ pension and disability payments cease at death; amounts received after death must be returned to the Veterans Administration (VA). However, the surviving spouse may be eligible to receive a portion of those benefits. For additional information, contact the VA online or by phone at the Phoenix office (800-827-1000).

Contact Insurance Companies

You will need to contact each insurance company that insured the decedent’s life or provided endowment or annuity benefits to the decedent. Each company will have its own requirements for payment of death benefits, although all will require a certified copy of the death certificate. Some may also require you to submit the original policy to them before they will pay the death benefit, while others will instruct you to destroy the policy after the death benefit is paid.

Finally, if the decedent was named as the beneficiary of any policies that you own, you will need to contact those companies and request a "change of beneficiary" form.

Additional Companies to Contact

Contact all banks, credit unions, brokerage companies or other companies where the decedent had accounts, investments or any other financial interest. Each will have certain requirements for collecting the funds owned by the decedent.

In Arizona, if the decedent owned over $75,000 in gross personal property or $100,000 in net real property at the time of his or her death (per 2013 legislation), it may be necessary to file a probate in order to collect amounts owned by the decedent. If there is any question about the necessity of filing a probate, you should contact an attorney.

If the decedent was receiving retirement or pension benefits from a private company, you will need to contact the company providing those benefits. If the decedent was a union member, there may be death benefits available through the union.

If the decedent was a beneficiary of a trust or an heir of an estate, you should notify the trustee or personal representative, respectively, of the death.

Inventory Assets

Ascertain the existence of the decedent’s assets and inventory them including the following:

• Bank accounts

• Stocks and bonds

• Life Insurance policies

• Retirement funds: IRA accounts, Annuities, 401K, Pension, and Profit Sharing

• Real estate

• Household goods, furniture and personal belongings as well as antiques, silver, jewelry, furs, stamp collections, or coin collections.

• Business interests – determine whether decedent owned an interest in any business.

Receivables and Death Benefits

Investigate other benefits that may be available to the estate, including: social security and veterans’ benefits (see above), union death benefits, employee benefits such as accrued vacation pay, final wages, employee death benefits, reimbursements, refunds on insurance, canceled subscriptions, professional and trade associations, fraternity/sorority, school alumni, and automobile clubs. Unfortunately, government, employment, and membership organization benefits do not come automatically. You must apply for them within their timeframes.

Liabilities and Creditors

Ascertain the existence of the decedent’s liabilities and list them including the following: Mortgages, Other secured obligations, Current household bills, Expenses of last illness, and Funeral expenses, etc. IMPORTANT: Discuss any payments you make from or for the estate with an attorney. Considerable liability for the personal representative could result if these payments are not handled properly. Also, beware of swindlers who send phony bills and overcharge for services.

Proof of Payment of Expenses by Family and Executors

Be sure to get and keep bills, invoices, receipts, and canceled checks for payments of any and all expenses. The personal representative appointed will need to supply the probate court with proof of payment.

Papers and Mail of Decedent

Do not throw out any documents such as life insurance policies and certificates, even if the policyholder stopped paying premiums. The policy may still be in force. In addition, mail and letters may be needed to prove payment or ownership of assets later.

Protect Assets

Be sure and keep the insurance going on the home and on any personal property so that these assets will be protected during the probate period.

Secure valuable tangible property.

This means anything you can touch, such as silverware, dishes, furniture, artwork, etc. If property is passed around to family members before you have the opportunity to take an inventory, this will become a difficult, if not impossible, task. Also, there may have been specific provisions for items of tangible property in the will.

Have someone watch your home (and the decedent’s home) during services. Sadly, burglars have been known to read obituaries to find out when no one will be home.

Death Certificates

Order ten or more certified death certificates. Usually, these can be obtained through the funeral home or your state's Department of Health. A certified death certificate will be needed in order to begin the probate process. You will need certified copies of death certificates to claim Social Security and insurance benefits, change ownership of joint property, enter safe deposit boxes, and to file tax returns. Photocopies are often not acceptable.

Taxes

There will be tax concerns including filing requirements, communicating with federal and state tax authorities, and observing deadlines. Due to the extensive subject matter, please consult an estates attorney for more information. However, certain relevant tax returns are:

• Decedent’s Final Income Tax Return

• Gift Tax Returns

• Federal Estate Tax Return

• Generation-skipping Transfer Tax Returns

• State Inheritance and Estate Tax Returns

• Fiduciary Tax Returns

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