Investor column: A loved one has died. Here’s a list of what survivors have to do next
Most of us have no idea of the process to handle the death of a loved one until we see it happen up close with a parent, sibling, extended family member, close friend, or spouse. We witness the aftermath many times from a distance, but the process is daunting when experiencing it for the first time.
When my young family first moved to Bradenton in the late 90’s we lived next to a recently retired single woman who was living in her parents’ home after they had passed away and she was preparing to sell her mom and dad’s house. She was having a difficult time getting rid of things. About a year later, she too passes away from a freak unknown health issue. Shortly thereafter, her sister moved into the parent’s house to again prepare the house for sale. Her sister still lives there after more than 15 years. The house never was sold and the plans have obviously changed!
As a financial planner and financial advisor, I enjoy assisting clients navigate the process to plan their financial lives and their financial legacies. My clients and I utilize local estate attorneys to assist with the financial plans we create which most times require trusts and wills. The clients that have been through a family member or close friend passing away are my best candidates for leaving their families with very little to manage after their death. That’s because they know what will happen after they are gone.
Even with a family member that has done a great job of putting their financial house in order, spelling out their wishes, and having their legacy plan ready to go in motion, YOU as the survivor still have a journey to embark on once they pass away. That journey is the process of shutting down the life of that person. Emotions from the loss of a loved one are part of the grieving process for most of us, and those emotions tend to send waves of feelings toward us at any given time!
Here are the first contacts and items to start that painful transition - You need to notify friends and family members, your church, and the funeral home. Have up to 12 copies of original death certificates. Locate where important documents are kept. Then contact the deceased family member’s financial professional, attorney, and personal representative. An obituary will further share details of your loved one and their surviving family. Schools, professional groups, and civic groups will also need to be notified. Banks, credit card companies, insurance companies, the Social Security Administration, and all three credit bureaus will also need to freeze and prepare to close all accounts. Recently I have heard of criminals using a deceased person’s credit cards, which is more common than we realize. In general, securing a home, apartment, etc., and eventually liquidating the property will be necessary. A pet may be involved as well.
One of the most personal items that may create those emotional waves to occur are smart phones. They have everything on them, contacts, photos, emails, texts, and many times passwords to online accounts and social media. Phone service should eventually be suspended. Social media accounts have procedures for transitioning the accounts of a deceased person. Fortunately, but often painfully, those accounts remain open where friends and family (especially spouses and children) have an outlet to share their thoughts and feelings about their loved one on the personal page long after they are gone.
Danny Wood is a principal and founder of SeaCoast Financial Partners. To learn more visit MySeaCoastfinancial.com. The opinions expressed in this material do not necessarily reflect the views of LPL Financial. Securities and advisory services offered through LPL Financial, a registered investment advisor. Member FINRA/SIPC.