After the Death of Your Spouse: Next Financial Steps for Surviving Spouses

 As a surviving spouse, you might find yourself overwhelmed by all the administrative and financial to-do items that you have to handle soon after the death of your spouse. There's a lot to do, much of which you've never done before. And you're supposed to get it all done while grieving.

This book, by Mike Piper, CPA, walks you through it, in plain language.

Many surviving spouses find themselves overwhelmed by all the administrative and financial to-do items that have to be handled in the months after their spouse’s death. There’s a lot to do, and they’re supposed to get it all done while grieving. And in many cases, the situation is made more difficult by the fact that the surviving spouse is not the one who regularly handled the household finances.

I wrote this book to walk people through it, in plain language. It’s the book I want my spouse to have, in case something happens to me.

Fortunately, some of these to-do items for surviving spouses are important but not urgent. And in fact, for some of these items, it’s best to wait. Many people report experiencing “brain fog” in the weeks or months following their spouse’s death. They find that they have difficulty concentrating and difficulty performing tasks that would normally be easy. Major, irrevocable decisions are best put off until this period is over, in cases in which it’s practical to do so.

That’s why the book is broken down into two parts: immediate next steps and intermediate next steps.

The book’s table of contents is as follows:

Part One: Immediate Next Steps

1. Learn the Terms (The Estate Administration Process)
2. Getting Organized
3. Notifying Necessary Parties
4. Initial Responsibilities as Personal Representative
5. Updating Your Own Estate Plan

Part Two: Intermediate Next Steps

6. Social Security Planning
7. Further Responsibilities as Personal Representative
8. Handling Inherited Retirement Accounts
9. Additional Options as a Beneficiary and Surviving Spouse
10. Tax Returns
11. Reassessing Your Own Finances
12. Reassess Your Portfolio
13. Finding Professional Assistance

Conclusion: What’s Next?

Appendix A: Does an Inheritance Create Taxable Income?

Appendix B: Social Security Widow(er) Benefit Math Details

Appendix C: Dealing with Trusts

 

Apps to help with the logistics of death of a loved one

 When my parents died I was the executor of their wills and trust. I used a variety of written resources (provided by insurance companies) and online (AARP) as a guideline for settling the estates. Now there are apps to help with the process! Thanks to Sophia Laurenzi writing for The Washington Post (and one of my sisters) for bringing the article to my attention. 

"What do you do after someone dies? Most people expect to deal with intense grief, but they might not realize how many logistical details arise after a death. Those tasks can feel overwhelming: deciding who to call, learning where to get death certificates, planning memorials and navigating finances."

There's an app for that!

Apps and websites such as Cake, Lantern and Empathy exist to help with the death of a loved one. 'Kat Reed founded EstateGrid after she published a workbook called “Begin Here: Helping Survivors Manage” to help her father manage the death of her mother.'

Check out the apps and websites and tuck this info away for when you need it.

A condensed crash course in estate planning with implications for inherited IRAs

 Wow, that's a long title for a blog post but the link below to Inheritance and IRAs is a good refresher/reminder on tasks to complete...soon, maybe before the fast approaching end of the year.

• The importance of having a will
• The tax implications of inheritance for spouses and other beneficiaries
• The different scenarios that can occur in inheritance planning
• The rights spouses and beneficiaries have in the process
• Extenuating circumstances that could change the outcome of an inheritance
• How inheritance works for different types of assets outside of an IRA

https://www.birchgold.com/inheritance-and-iras/

What to Do When a Loved One Dies

"Settling a deceased family member's affairs is not a one-person task. You'll need the help of others, ranging from professionals like lawyers or CPAs, who can advise you on financial matters, to a network of friends and relatives, to whom you can delegate tasks or lean on for emotional support." Leanne Potts, writing for AARP, explains the process and provides a detailed list of tasks facing the survivors of the deceased. Below is the list; for full details: https://www.aarp.org/home-family/friends-family/info-2020/when-loved-one-dies-checklist.html

To Do Immediately After Someone Dies

Get a legal pronouncement of death

Tell friends and family

Find out about existing funeral and burial plans

Within a Few Days of Death

Make funeral, burial or cremation arrangements

Secure the property

Provide care for pets

Forward mail

Notify your family member's employer

Two Weeks After Death

Secure certified copies of death certificates

Find the will and the executor

Meet with a trusts and estates attorney

Contact a CPA

Take the will to probate

Make an inventory of all assets

Track down assets

Make a list of bills

Cancel services no longer needed

Notify the following of your loved one's death:

• The Social Security Administration

• Life insurance companies

• Banks, financial institutions

• Financial advisers, stockbrokers

• Credit agencies

Cancel driver's license

Close credit card accounts

Terminate insurance policies

Delete or memorialize social media accounts

Close email accounts (& social media)

Life will be so much easier for our survivors if we gather this information, prepare a will and letter of last instruction and provide guidance on your wishes.

 

 

 

Got a will? Here are 11 more end-of-life documents you may need

"Anyone remember the death rate in the United States? It's... one per person. 

Nobody is getting out of here alive. We never know when death will happen, just that it will," Amy Florian explained to a group of financial professionals. 

In these days of coronavirus, the need for detailed instructions for your financial and digital affairs is timely. 

Kelli B. Grant explains:

1. a living will: dictates what medical treatments you do and don't want in different circumstances.

2. POLST: Physician orders for life sustaining treatment,

3. Power of attorney for Healthcare/Healthcare proxy.

4. Durable power of attorney: names the person to pay bills and make financial decisions on your behalf. 

5. DNR/DNI orders: do not resuscitate/do not intubate.

6. Diminishing capacity letters.

7. Organ donor designation.
8. Life insurance
9. Personal property memorandum to be included with a "letter of last instruction" 
10. Digital assets memorandum: "Specify in your will who you want to own or have access to your digital assets and accounts like social media and email."
11. A list of where important documents and items are kept

Get the details at:
https://www.cnbc.com/2017/11/15/12-financial-planning-documents-to-handle-health-end-of-life-care.html

Letter of last instructions... What's that?!?

A letter of last instruction is an informal, non-legal document that tells your survivors info they need immediately at your death, not weeks later after final arrangements have been made and your will located.
Start with what you want done with your body: donate to science, organ donations, cremation, burial, etc. Be specific.
What kind of ceremony, if any, that you desire: traditional funeral, wild Irish wake complete with free-flowing whisky, party at the beach or mountains, be specific.
Nitty gritty financial details:
Where to find your will and estate planning documents, contact info for your attorney.
Notify Social Security right away.

"A list of the credit cards that need to be cancelled—but before you do so, here are all the businesses that automatically charge each card each month."
Here's one source: https://humbledollar.com/2019/04/one-last-thing/

Aretha Franklin died without a will. Do you have a valid up-to-date will?

You may not have assets worth $80 million but you still need a will to avoid probate and make life easier for your heirs.
Her four sons face a complicated estate settlement process plus having to pay federal estate taxes (good for all the rest of us). See: https://www.wealthmanagement.com/estate-planning/aretha-franklin-died-without-will
To die without a will is to die "intestate" which means your state legislature has decided for you how your assets will be distributed. Is that what you want? As Michelle Singletary wrote in The Washington Post, when heirs end up in extended legal proceedings, it exacts a substantial financial cost. Singletary concludes:

"So, let me ask you one question: Do you love your children/family?

Because if you care about their well-being, and you want to minimize the drama after you die, you need a will. Tomorrow isn't promised."

End-of-Life Financial Planning Documents

Got a will? Here are 11 more end-of-life documents you may need 

by Kelli B. Grant for CNBC.

"Anyone remember the death rate in the United States? It's... one per person. Nobody is getting out of here alive. We never know when death will happen, just that it will," Amy Florian explained to a group of financial professionals. 

Not to discourage you with a long list, but it's really time to quit delaying and do some estate planning. For those of you who have a will and think that you're done... there are a few more documents to make life easier for your survivors. 

Start with a will and then...

In addition to a will, you may also need:

1. a living will: dictates what medical treatments you do and don't want in different circumstances. The Five Wishes planner ($5)  "covers a wide range of comfort and care preferences. It's meets the legal requirements for a standalone advance directive in 42 states and Washington, D.C., and in the rest, can be used in conjunction with the state's living will forms." 

2. POLST: Physician orders for life sustaining treatment, forms are an "option for consumers to dictate their end-of-life wishes, Florian said. Most states offer them, under various names and programs (check polst.org)." 

3. Power of attorney for Healthcare/Healthcare proxy: Names a person to make health care decisions for you when you are incapacitated. 

4. Durable power of attorney: names the person to pay bills and make financial decisions on your behalf. 

5. DNR/DNI orders: do not resuscitate/do not intubate (may be included in POLST but redundancy can be good). "Resuscitation is the only medical procedure routinely done without permission, so [a DNR] has to be accessible."Post it on your refrigerator. 

6. Diminishing capacity letters: Your advisor may ask you to sign one. "It gives that professional permission to call specific trusted individuals (usually, your powers of attorney and/or a family member), if they have noticed some diminishment in your physical, cognitive, mental or psychological capacity."

7. Organ donor designation: "Checking the organ donor box on your driver's license isn't enough, Florian said — your license may not end up at the hospital with you in an emergency, and your family has the potential to override the designation." If you want to donate, register with the National Organ Donor Registry at organdonor.gov.
8. Life insurance: if loved ones are dependent on your income or services (homemaker). Ensure that "you can fulfill your financial responsibility to the people you love."
9. Personal property memorandum: "personal possessions can be a significant source of will contests and family disputes." Can be included with a "letter of last instruction" and can be updated without changing one's will.
10. Digital assets memorandum: "Specify in your will who you want to own or have access to your digital assets and accounts like social media and email." BUT, do not include usernames and passwords in your will which can become a public document. Provide a separate list and keep up to date in the cloud or backup device.
11. Relevant info collection: "Keep a list of where important documents and items are kept, and provide it to your financial advisor or another trusted individual. That includes everything from key documents like wills, powers of attorney and Social Security cards, as well as physical items like keys to the car and your safe deposit box. It also helps to have account logins and passwords, and details that could help caregivers like long-term care policies or veterans benefits eligibility."
Full details at: https://www.cnbc.com/2017/11/15/12-financial-planning-documents-to-handle-health-end-of-life-care.html

A plan for your digital legacy

"When thinking about your digital legacy consider:

• social networks, such as Facebook, Twitter, or LinkedIn
• blogs and licensed domain names
• your presence in online communities or listserves
• music, photos, or other files that you store online
• seller’s accounts on Amazon, eBay, or Itsy, and
• access to financial accounts or utilities."  As part of your estate plan you should arrange for the  management/termination of your accounts. For advice read Nolo's recommendation at: http://www.nolo.com/legal-encyclopedia/a-plan-your-digital-legacy.html

21st Century wills need to address digital asset ownership

If you use email, Facebook, blogs, Twitter, own Bitcoin, frequent flyer miles, Amazon account, or other rewards programs, youneed to plan for access to and transfer of your digital assets at death or if you become incapacitated. Robert Powell explains how to protect one's digital assets and allow access to appropriate persons. he explains that there are "federal and state laws that protect digital assets and may impede fiduciary access to them. What's more, technology providers have their own privacy and terms of use policies that may govern your digital assets and make access to those assets difficult or impossible." So update your will to address these 21st century assets.

Wills, Trusts, Estate Planning & other Legal Topics

A great resource for estate planning is the NOLO website: http://www.nolo.com/
Nolo was started by a group of lawyers who felt you shouldn't have to pay hundreds of dollars to get competent legal information and advice. In addition to selling books (the real thing and e-books) on a wide range of legal topics, the Nolo website provides an amazing amount of free information. For most people with simple lives (and not a string of ex-spouses with kids) you can write your own will for a fraction of the cost of what an attorney would charge. A great thing about the Nolo resources is they are very careful to alert you to situations where you really do need to consult an attorney. Their materials are well written in a lively manner and with a sense of humor. Check them out. Even if you are convinced you need a lawyer, you can save hundreds of dollars by educating yourself and preparing before you meet with an attorney.

5 Simple Things to Prepare Now for Your Estate

These documents are easy to assemble and will be helpful to your loved ones when you pass on.

"An account list. Prepare a simple document that lists all of your financial accounts, your account numbers and contact information for those accounts. If the accounts have stated beneficiaries, include those as well.

A folder containing proof of ownership documents. In a single folder, you should include the deeds to any property you own, including land and vehicles. You should also include a statement of any accounts with significant assets – your retirement accounts, investment accounts, savings accounts and so on.

An advance directive form for your state. This document will help your family assess how to handle your medical needs should you be unable to do so.

Marriage and divorce paperwork. Make sure you have an easy-to-locate copy of your marriage certificate if you’re currently married. If you’re divorced, include copies of your divorce decree from those marriages. 

A letter to each of your loved ones. Spend some time writing a letter to each of your closest loved ones, telling them how much they mean to you and reflecting on some of the moments you shared."

For more details read Trent Hamm’s blog: http://money.usnews.com/money/blogs/my-money/2014/04/10/5-simple-things-to-prepare-now-for-your-estate