Many adults with elderly parents live with the possibility of death on the horizon. This is not said to be morbid, but realistic. Settling the estate of a loved one often comes with major logistical hurdles. At a time when you may need to grieve and support family members emotionally, you can find yourself unraveling complex financial transactions and legal issues. Some of the common logistical issues families address after the death of a parent include:
1. Accessing and closing any accounts
Can you access your parent's checking account? Some families will prepare for the death of a loved one by setting up joint accounts so family members will have an easier time managing account details after death. This requires a great deal of trust. Banks will often require that you provide specific details in order to access the checking or savings accounts of a parent who has passed.
2. Gathering official records
The number and range of official records a person gathers over a lifetime can be staggering. From paper statements for financial accounts to any documents with terms and conditions, it adds up fast. It is important to avoid disposing of anything by accident. In some families, loved ones will store important documents in a dedicated location, such as a safe deposit box at their bank or in a home safe. Doing this can make it easier to track records down after the death of a loved one.
3. Contacting Social Security
The U.S. Social Security Administration needs to know about the death of your parent if payments were being received, as those checks will need to be stopped. Social Security will also need to determine if any survivor benefits must be passed on. In many cases, funeral homes will take care of this notification for you, but you should check to make sure.
4. Cancelling bills and services
In today's service-driven world, many people have a difficult enough time keeping track of their own subscriptions and automatic payments. When somebody dies, those services, payments, and bills need to be canceled. To do this, you may need account login information, passwords, email address details, bank account numbers, copies of the death certificate, and other information, depending on the type of account.
5. Notifying life insurance
If your parent had life insurance, you will want to let the insurer know about the death as soon as possible to initiate the process of collecting benefits. Life insurance is meant to provide financial relief in the aftermath of death. It would be unfortunate to lose a loved one who put resources into life insurance only to have the benefits be delayed because nobody informed the insurance company.
6. Securing the will and settling debts
Make sure your loved one's will is in a secure place where it can't be tampered with. From there, dealing with the details of the will and settling debts will often require the aid of a lawyer and possibly a financial advisor to help you manage the complexities of the situation. In some cases, funeral homes can consult with you on how to initiate these processes, but specialized advice is usually necessary at this point.
If you are reading this after the death of a parent, our condolences. If you are reading it because you are worried about the future, then consider taking action now to simplify these processes later. Working with your parent to gather records and data can make it easier to deal with the details later. You can also take a strategic approach to traditional and online banking with your parent so you are more prepared to handle accounts. Banking solutions that simplify everyday finance management can also make it easier to handle these logistics.
