Locating documents, writing obit just 2 of many steps to take after loved one’s death

At some point, we will all face losing a loved one.

This death may not only impact us emotionally, but financially as well. The steps that are taken before and after such an occurrence can help relieve stress, reduce costs and provide a smoother transition of financial assets.

The following ideas can help guide you through matters that should be addressed either before or upon the death of a loved one.

Before death

Most have heard the saying “get your ducks in a row.”

Ever-changing technology has resulted in the increased use of digital solutions, i.e., accessing financial data via a smart phone app, storing documents in digital vaults, passwords on our phones, etc. The increased use of technology has amplified the need to share the location of private personal data with loved ones.

Similar to making sure a trusted person has access to your lockbox at the bank or knows where the key or combination to your safe can be found, data stored digitally also needs to be accessible. Documenting your various accounts, how to access them, their purpose and more can all be stored in one central location.

The information can be password protected, stored electronically and provided to those you trust on an annual basis or when any updates have been made. This creates a single-source document that will be needed after a death.

If one chooses to store this data in hard copy, keep a copy in your bank lock box, if available, or a fireproof box/safe.

For ease of access to pay any necessary bills after death, one trusted family member or individual should be named “Payable on Death” on a bank account with adequate funds that can be used. One could also add a trusted person/child as a joint owner, however this can raise some potential additional risks and could also raise concerns with other family members.

Always consult your attorney or trusted financial adviser for recommendations regarding this matter.

After death

Emotions surrounding the loss of someone special will be present, adding to the difficulty of making needed decisions.

What many initially experience is the rushed need to make many decisions within 24-48 hours after death. I’ll never forget being asked within one hour of a family member passing, “where do you want the body to go?” Decisions about burial or cremation, type of service, casket and others may need to be made very quickly.

Having an advanced discussion about these issues or planning completed by the decedent is very important and could relieve some stress. It can be as simple as a stating, “I want to be cremated vs. buried” or “I want to donate my organs.” If the decedent had a burial plan, the steps to make sure everything goes as planned will still need to be completed.

Immediate steps after one dies include the need to notify family and loved ones and possibly creating an obituary.

A death certificate is usually provided within 24 hours by a family doctor or medical examiner. The funeral home should complete the needed forms and file the document with the state. Ordering copies or obtaining a digital copy of the death certificate is imperative for transferring any assets.

Notifying the decedent’s employer, if applicable, and arranging for your own bereavement leave is important as well.

After this whirlwind, one should pause and take some time, at least a few days, to allow for the feelings of loss or grief which may occur. There will still be many items that need to be handled but nothing that should require immediate attention.

When ready, it will be time to start organizing the next steps. These can include:

▪ Putting safeguards in place to protect physical property like house(s), cars, as needed.

▪ Locating any estate planning/important documents, i.e., a will, trust, deeds, titles, marriage certificate.

▪ Contacting an attorney, as needed.

▪ Notifying the Social Security Administration of the death.

▪ Locating any life insurance policies.

▪ Contacting credit card companies and canceling all cards unless you are named on the card and wish to retain it (usually suggested for joint owners, so remove deceased’s name).

▪ Continue paying necessary bills, such as a mortgage or utilities.

▪ Creating a list of assets if one does not exist.

▪ Determining next steps to retitle or distribute assets.

The emotions surrounding the passing of a loved one will vary for each person. Apart from the immediate items that need to be addressed within 24-48 hours, one should not allow oneself to be rushed into making any decisions.

When you’re ready, always seek advice from your trusted advisers during this difficult time.

Lynn Mayabb is a member of the Financial Planning Association of Greater Kansas City. She provides financial and estate planning services to high-net-worth families of BKD Private Client, where she coordinates investment management with tax, retirement, financial education and estate planning.

This story was originally published October 5, 2021 at 5:00 AM.