Saturday, February 25, 2023

Closing the Estate

Part 3 of Planning for the Inevitable

Within one month of the death, you should: 

Again this is based on my experiences and what I came across in dealing with 3 different estates. This is by no means a complete list. Ask for help from professionals; lawyers, realtors, financial advisors, etc…

  • Open a bank account for the estate of the deceased

    • You will need to create an EIN, this is free

    • This should be done early on and all receipts and disbursements should be recorded in that bank account, in order to account properly for the assets of the deceased and the expenses of administration.

  • Locate and/or obtain important paperwork for the settlement of their estate. Accounts with beneficiaries, TOD or POD, or joint can be dealt with immediately. Accounts without will need to go into Probate.

    • Will

    • Trusts

    • Nuptial Agreements

    • Securities, stocks, bonds, mutual funds, etc

    • Bank statements, checkbooks, similar documents

    • Pension-retirement benefits

    • PreNeed Insurance - intended to cover the funeral expenses

    • Mortgage, Reverse Mortgages paperwork

    • Student Loans

    • Loans

    • Property Deeds

      • If real estate is owned in more than one state, special proceedings, called "ancillary administrations," may be needed in each state.

      • If there is real estate that is insured, the Executor should make sure that the insurance policies on the properties of the deceased are maintained.

    • Titles to motor vehicles

    • Leases

    • Life Insurance

    • Health Insurance

    • Safe Deposit Agreements and keys

    • Storage Unit

    • Unpaid bills

    • Taxes

      • Collect paperwork for Current Year taxes

      • Estimated taxes, if applicable

      • RMD - Required Minimum Distribution, if applicable

      • Gift Tax

      • Charitable Contributions, if applicable

      • Previous 7 years of filed taxes

    • Notes receivable/Promissory Notes

    • Child Support

    • Alimony

    • Local authorities if they paid council tax, had a parking permit, were issued with a blue badge for disabled parking, or received social services help, attended (adult) day care or similar.

    • Marriage, birth and death certificates

    • Divorce documentation

  • Business Owner

    • Any documentation of business ownership or business interest

    • Computer records regarding books of a business or personal assets

    • If the deceased controlled or was a principal person in a business, it may be necessary to check to see if there are Buy-Sell Agreements under which the interest of the deceased would be purchased by the business entity or other business owners.

    • Discuss with lawyer

  • Probate

    • Notify their attorney regarding the probate of the estate or Consult with an attorney about probate

    • If there is a Will, take the Will to the appropriate County or City office to have it accepted for probate.

      • The will might already be on file so you can call and check

      • Call before you go to see if you need an appointment and what documents you need to complete and provide

    • If there is no Will and there are assets to probate, then the Court will appoint an administrator and the assets of the deceased will be distributed according to state law.

    • As part of the probate process, all family members within a certain degree of kinship must be contacted, whether or not they receive assets from the Estate of the deceased.

    • Make an inventory of household goods, personal belongings and the like, in order that they can be accounted for and properly distributed, after probate.

    • After probate is complete distribute money and household goods

  • File Claims

    • Health Insurance

    • Veteran- inquire about "joint and survivor" benefits that you may be entitled to through the VA. https://www.va.gov/  800-827-1000. 

    • Contact the deceased’s employer. Inquire About Any 401(k),pension,or company benefits that the deceased may be entitled to

    • File claims with life insurance companies.

      • Check with existing credit card, bank, loan accounts

    • Social Security Administration and any other government agencies or benefit programs that may be making payments to the deceased. https://www.ssa.gov/survivors/  1-800-772-1213

    • Pension Plan

  • Report / Notify Death 

    • Landlord

    • Medicare/Medicaid

    • Registrar of Voters

    • DMV to return any driving license, cancel car tax or return, transfer titles of all registered vehicles

    • Passport Service, to return and cancel a passport.

    • Notify Credit Bureau (prevent identity theft and fraud)

      • The official way to notify the credit bureaus regarding your loved one's death is by sending a death notice via certified mail. Along with your written claim, be sure to include a certified copy of the death certificate, proof that you are the authorized agent to act on behalf of your loved one, and identifying information of the deceased, such as their full name, Social Security number, birthday, and date of death.

      • Be sure to request a copy of your deceased loved one’s latest credit report. 

        • TransUnion: (800) 888-4213

        • Equifax: (888) 548-7878

        • Experian: (888) 397-3742

    • Deceased Do Not Contact Registration to remove the deceased's name from mailing lists and databases

    • Clubs, trade unions, associations with seasonal membership for cancellation and refunds

    • Social groups to which the deceased belonged

    • Dentist

    • Doctors

    • Probation/Parole Officer

  • Cancel 

    • Prescriptions

    • Newspaper delivery, if applicable

    • TV/internet/Phone companies with which the deceased had subscriptions, if applicable

  • Send acknowledgement cards for flowers, donations, food, kindness. Also remember to thank pallbearers.

  • Collectors - find out worth of and distribute after probate

    • Coins

    • Stamps

    • Dolls

    • Toys

  • Watch out for people who prey upon families of deceased

    • There are people who look for death notices and make unfounded claims against the deceased. Some may also attempt to burglarize the home during the funeral service. Be cautious about such matters; have someone stay at the home during the funeral service and do not easily accept the claims of unknown individuals that lack documentation.
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