Survivor Checklist - Dealing With the Details After the Death of a Loved One

The death of someone you love is one of the most difficult experiences to deal with. Coping with the pain and grief can be overwhelming. But in the midst of all the emotional turmoil, there are also a host of practical matters that must be dealt with. Arranging for the funeral costs and other estate expenses to be paid, filing the final income tax return, locating all of the deceased's assets for distribution to beneficiaries - if you are the executor of the estate, these are all your responsibility. And if you're not the executor, then whoever is acting in that capacity may need your help to perform his or her duties.

Whether or not an estate is admitted to formal probate with a court, certain information needs to be collected and certain actions need to be taken with respect to the financial affairs and property interests of the deceased person. This is essential to ensure that proper records are kept for tax purposes under United States estate tax laws. A Survivor Checklist can help you organize the necessary information and will act as a guide in your meetings with legal and financial advisors regarding what procedures are required to finalize the deceased's affairs.

Things That Must be Done As Soon as Possible

1. Care of Minors and Dependents. Did the deceased person leave any orphaned minor children or adult dependents which need to be taken care of? If the deceased left instructions for guardianship, those instructions should be followed immediately. If not, you need to consult a family lawyer or the appropriate public agency right away to determine the best course of action for the dependents' custody and care.

2. Personal Property of the Deceased. Locate all of the deceased's personal property and make a list of all items of value, including family heirlooms and antiques. Making a photo or video inventory of all household goods and personal property can help the estate representative in securing the items prior to distributing them. It is also a way to avoid disputes between the heirs and beneficiaries of the estate by identifying all personal property items and by ensuring that no items are removed from the deceased’s residence prior to the formal distribution.

3. Estate Bank Account. It's a good idea for the estate executor to open a separate checking account for the purposes of administering the estate. All estate funds must be kept separate from the executor's own funds. A segregated estate bank account will assist the esecutor in keeping track of all money that is received or disbursed by the estate. In order to open an estate account, the executor may need to obtain a taxpayer identification number for the estate (“EIN”). The IRS considers the estate a separate taxpayer entity.

4. Mail. Collect all mail and immediately deposit all dividends, interest payments, rent and other receipts into the estate bank account. Pay all bills that must be paid within a short time frame (such as utility bills for the deceased's residence).

5. Safe Deposit Box. The executor will need to find and gain access to any safe deposit box the deceased may have had, whether that box was held solely by the deceased or jointly with another person. The contents of all safe deposit boxes must be inventoried by the executor in the presence of a bank officer. The procedure for obtaining items stored in safe deposit boxes varies from bank to bank, so consult the bank officer to find out what needs to be done to gain necessary items in the safe deposit box, such as the deceased’s will, burial plot deed, life insurance policies, or prepaid funeral contracts. After the contents of the safe deposit box have been inventoried, the executor will usually be permitted to remove any documents needed for probate.

6. Insurance. Confirm that any existing liability and property insurance coverage is in full force and effect. Notify the insurance company of the death and whether or not the deceased’s residence is still occupied. Many insurance policies have specific clauses regarding the vacancy of an insured property. If there is no occupant in the home, you may have to take steps to provide security for the property during the period that it will remain vacant.

7. Beneficiaries. Locate the original will or trust deed that sets out who the beneficiaries of the estate are and how the estate property is to be distributed among them. Determine if any beneficiary is a minor or a dependent adult, and what the trust conditions are regarding their portion of the estate.

8. Heirs. Put together a list of the names, addresses, and social security numbers of any of the deceased's relatives who are defined by law as the deceased's heirs. These people may stand to inherit from the deceased's estate if there is no will or trust deed, or if the will is judged to be invalid. The heirs will need to be notified when the will has been admitted to probate, and of the outcome of the probate proceedings. Check with a probate lawyer to determine what the proper notice procedure is.

Other Matters That Must Be Dealt With by the Executor

9. Social Security Benefits. Contact the Social Security Administration office to determine if there are any benefits available for the deceased's surviving spouse and minor children.

10. Assets and Liabilities. Perform a thorough inventory of all of the deceased’s assets and liabilities. Examine all statements, records, and other important papers of to the deceased. Liabilities would include outstanding loans, mortgages, and rental payments, as well as any expenses incurred from the deceased’s last illness and funeral home costs. If the estate is probated, this complete listing of assets and liabilities will be required. The inventory of assets and liabilities can also act as a checklist to ensure that all assets are properly distributed, and all outstanding debts are paid.

11. Outstanding Debts. Pay all of the outstanding expenses and debts of the deceased, and all expenses incurred by the estate. The executor must also keep complete records of all expenditures for tax purposes. If there is not enough money to pay all the debts and expenses, the executor should consult an estate lawyer to determine the appropriate action. The debts and expenses that must be paid include:

• bills from hospitals and care facilities
• bills from physicians, health care providers and caregivers
• ambulance costs
• mortgage payments or, if renting, lease / rental payments
• maintenance of the deceased's residence, including utilities, property taxes and insurance
• business debts
• loan payments and credit card / charge account payments
• administrative expenses incurred in transferring assets, preparing for estate sale, and otherwise distributing and disposing of estate property
• funeral expenses
• taxes
• probate costs.

12. Credit Cards and Charge Accounts. Close the deceased’s credit card accounts and other charge accounts. If any credit card or charge accounts were held jointly with the spouse or other person, request that the deceased’s name be removed from those accounts.

13. Capacities in Which the Deceased Served. If the deceased served in any representative capacity for another person, a company or an organization, arrangements must be made to transfer the authority and responsibilities deceased held to another person or entity. Such capacities may include:

• attorney-in-fact under another person's Power of Attorney,
• trustee for a trust,
• personal representative for another person's estate,
• conservator, guardian or custodian of a minor or dependent adult,
• registered agent for a company.

14. Disclaimer. Early in the administration of the estate, the executor should advise each beneficiary of their option to refuse or “disclaim” their share of the estate. This refusal, or disclaimer, must be made within a specified time period, as set forth by state or federal legislation. Consult an attorney to find out the applicable time limits and/or consequences of disclaimers.

Documents and Records

The executor must gather together certain documents which will be essential in preparing an inventory of the estate assets, as well as for filing any required tax returns. Such documents include:

• the deceased’s most recent income tax return,
• title deeds for any real estate property owned by the deceased, and any title insurance policies,
• motor vehicle titles or registration certificates,
• list of all bank accounts, including joint accounts and business accounts,
• certificates for stocks, bonds, and other investments,
• gift tax returns filed by the deceased,
• life insurance policies (the cash value is considered an estate value),
• records of marital status (e.g. marriage certificate, divorce decree, etc.).

Property

15. Transferring Title and Ownership. Whether or not the deceased’s estate is formally probated, ownership of all real estate, motor vehicles, stocks, bonds, bank accounts, and any other assets must be transferred to the appropriate persons. For this reason, it is important to determine if the deceased owned any property with another person, whether as tenants-in-common or as joint tenants.

• Title transfers may be accomplished through formal probate, survivorship affidavits, or by procedures identified by the financial entity involved (e.g. bank, insurance company, or corporation’s transfer agent). Although title automatically passes to the surviving joint tenant(s) of any property owned as “joint tenants with full rights of survivorship”, the transfer will not be recognized until the deceased’s name is officially removed from title. Contact an attorney to help resolve all issues relating to the deceased’s real estate.
• Bank accounts and motor vehicle titles may be transferred by providing a certificate of death and any other required documents to the appropriate office or agency. The deceased’s name should be removed from title as soon as possible.
• The estate executor has the authority to sell the deceased’s assets and property, but these decisions should be discussed with the beneficiaries. Meet and discuss the matter with the beneficiaries concerned, and abide by the wishes of the beneficiaries as far as is practical - however, the deceased's Last Will and Testament will override their wishes in the event of any conflict.
• In order to transfer or liquidate stocks, investment accounts or bank accounts, contact the transfer agent or financial institution in which the assets are held to find out what documentation they require in order to complete the transfer. Also, consider transferring shares of any stock owned by the deceased to the beneficiary rather than liquidating them. This way, the beneficiary will receive a stepped-up basis in the property (the deceased’s accounting basis in the asset is transferred to the beneficiary, potentially avoiding some capital gains tax). An attorney or tax advisor should be consulted with regards to this option.

16. Out-of-State Property. For any out-of-state property that the deceased may have owned (particularly real estate), an ancillary administration may be required in the jurisdiction where the property is located, in order to transfer the title.