WHAT ARE FINANCIAL CONSIDERATIONS WHEN A LOVED ONE DIES?

Fifty percent of women over the age of 65 outlive their husbands by fifteen years. 75% of caretakers for elderly relatives are female. Here are some useful tips for you to consider when a loved one dies.

Short-Term Cash Requirements

You’re going to need to plan for your short-term cash needs.  Some items to consider are the funeral or memorial service expenses. There could be estate taxes owed, the estate tax return must be filed within nine months. You should cancel credit cards held in the deceased’s name and establish credit in your own name if your spouse has passed.

What to Do within the First Month

Consult your attorney to interpret the will and get the estate through probate; your tax professional should value the assets and file state and federal estate income tax returns. Send a letter to insurance companies with a copy of the death certificate and policy numbers for the forms necessary to file your claim. Remember to think beyond the typical life insurance policies you may have purchased to accidental death insurance, travel insurance, creditor life insurance on mortgages or credit cards, or a group life policy available because of the deceased’s relationship with a trade or professional organization, fraternal order or club. 

Visit the local Social Security office to file for Social Security benefits and investigate other governmental benefits that could be available i.e. civil service or non-U.S. citizens. Visit the local VA office to file for Veteran's benefits.

Notify the deceased's employer's employee benefits department to file for benefits owed you. You could be eligible for retirement plans (pension, and 401(k) amounts), last paycheck, unpaid bonuses and commissions, vacation and sick leave, life or medical insurance, deferred compensation, workers compensation (if the death occurred on the job), stock options, and/or savings plans.  A copy of the employee handbook can help you identify other benefits.  Also, you may also consider contacting former employers or unions.

If the Deceased was Your Spouse

Be sure to re-evaluate your financial position.  Determine your net worth, your monthly spending plan, and your risk tolerance.  Make sure you are properly insured including Medicare benefits and long-term care insurance. Update your beneficiary designations as needed and notify your bank that joint accounts need to be changed.

Choosing Your Own Executor

The duties and problems of an executor are complex and critical. They're responsible for a range of functions, so the person you choose needs to be someone that has the ability to get the job done. He or she will need to have the will admitted to probate, safeguard and assemble assets, appraise property, pay claims, accounting and auditing, as well as the distribution of estate assets.

Wachovia Securities is the trade name used by two separate, registered broker-dealers and non-bank affiliates of Wachovia Corporation providing certain retail securities brokerage services: Wachovia Securities, LLC, Member NYSE/SIPC, and Wachovia Securities Financial Network, LLC, Member FINRA /SIPC.

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