By Angela Siegel
Founder
Founder
Knowing in advance what to do when a loved one dies can help alleviate uncertainty and anxiety. Of course, funeral arrangements must be made quickly. One should order a sufficient number of death certificates, as there may be a delay in obtaining additional copies later on. A death certificate will be needed for each asset owned, as well as for filing(s) with governmental agencies. If the decedent was collecting a pension or social security, the appropriate entities must be notified. A visit to the decedent’s safe deposit box, if any, should be accomplished quickly, so that important documents can be retrieved before it is discovered that a death has occurred.
Surviving spouses should not begin to collect life insurance proceeds or the decedent's retirement funds, nor should the decedent's name be removed from assets, until legal advice has been obtained. If an estate tax problem exists, a surviving spouse may want to "renounce" his or her interest in certain assets, thus allowing the assets to pass to children or into a credit shelter trust created under the decedent's will. It is very important to not take any actions with respect to assets until one is certain that a renunciation is not beneficial. In order to be valid, a renunciation must be done within nine (9) months of death.
Most institutions will freeze the accounts of the decedent once they discover there has been a death. Certain bills, such as medical and credit card debt, need not be paid immediately and it is not even necessary to call these creditors. Sending them a photocopy of the death certificate is usually sufficient and will save time and energy. If the decedent owned a home, real estate taxes, common charges, mortgage payments and necessary utilities, such as electricity and water, must be paid in order to protect the home. One should be aware that homeowners insurance may be terminated if it is discovered that the property owner is deceased and the property is vacant.
An attorney should also be consulted so that the process of probating the will or administering the decedent's estate can begin. The attorney will not only handle the probate and administration of the estate, but he/she can also provide valuable and necessary advice with respect to tax planning and the collection of assets. The filing of estate tax returns and the payment of taxes owed must occur within nine (9) months. Even if a federal estate tax return is not required, in the case of the first spouse dying, it may be wise to have a return prepared and filed by your attorney, in order to preserve the unused estate tax exemption for the surviving spouse.