Death and Taxes

We all know the old adage about death and taxes…but are we really prepared for what has to be done in the case of a sudden death of a family member? Fifty percent of women over the age of 65 outlive their husbands by fifteen years.12 Here's a useful checklist for you to refer to when a loved one dies. 75% of caretakers for elderly relatives are female.

Collecting Important Papers

• Wills, letter of instruction
• About 2 dozen certified copies of the death certificate
• Joint tax returns for the past five years
• Retirement Accounts
• Insurance policies
• Bank, brokerage and mutual fund statements
• Stock certificates
• Employer benefits information including stock plans
• Trust documents
• Powers of attorney
• Deed to house or lease agreement
• Other real estate deeds, leases, rental agreements
• Business partnership agreements
• Automobile titles, registration, loan and lease agreem
• Most recent mortgage statement
• Warranties
• Prenuptial agreements
• Birth certificates including those for minor children
• Marriage certificate
• Military discharge papers
• Social security card
• List of credit cards
• Other "official" or government papers
• Reviewing prior years tax returns and checkbooks could identify other assets

Short Term Cash Requirements

• Funeral or memorial service
• Estate tax return must be filed within 9 months
• Cancel credit cards in deceased's name only
• Establish credit in your own name if your spouse has died

Within the First Month Collect Your Assets

• Consult your attorney to interpret the will and get the estate through probate; your tax professional to value the assets and file state and federal estate income tax returns.
• Letter to insurance companies with a copy of the death certificate and policy numbers for the forms necessary to file your claim:
1. Life insurance
2. Accidental death insurance
3. Travel Insurance
4. Creditor life insurance: mortgage, credit cards
5. Group life purchased because of deceased's relationship with a trade or professional association, fraternal order or club
• Visit the local Social Security office to file for Social Security benefits:
1. Death Benefit
2. Monthly benefit, direct deposit the benefit into your bank account
3. Investigate other governmental benefits that could be available i.e. civil service or non-US citizens
• Visit the local VA office to file for Veteran's benefits:
1. Burial allowance
2. Monthly payments
• Notify the deceased's employer's employee benefits department to file for benefits owed you:
1. Retirement plans: pension, 401k
2. Last paycheck, unpaid bonuses and commissions
3. Vacation and sick leave
4. Life or medical insurance
5. Deferred compensation
6. Workers compensation if death occurred on the job
7. Stock options
8. Savings plan
9. A copy of the Employee handbook to help identify other benefits
10. Remember former employers or a union

Re-evaluate your position if the deceased was your spouse

• Determine your net worth, your monthly spending plan, your risk tolerance
• Make sure you are adequately insured including Medicare benefits and long term care insurance
• Update your beneficiary designations as needed
• Notify your bank that joint accounts need to be changed

Choosing Your Executor Is An Important Step
The duties and problems of an executor are complex and critical. They're responsible for a range of functions including:

• Attend and having the Will admitted to probate
• Safeguarding assets
• Assembling assets
• Appraising property
• Payment of claims
• Accounting and auditing, and
• Distribution of estates assets

Choose your executor wisely...
Call us at 549-1120 ext 401 to set up an appointment, we're here to help.

¹Evergreen Women & Investing Seminar 1999, Gouches Women's Markets 2000.
²Valie Internet, 1999.

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