Knowing Your Financial Bad Habits

How much time have you spent thinking about your future death? If you’re like most people, probably not much. Thinking about your death or that of a loved one can bring up plenty of unpleasant emotions, but having a plan to take care of the details can ease some of the stress in a time of grieving. So if you’ve lost someone close to you or just want to create a plan for the future, follow this checklist to help you deal with the financial side of an unexpected death.

Organize Documents

In the aftermath of a loved one’s passing, his or her will is not the only document you will need. In order to do things like request benefits or change the name on car titles, you will also need copies of the following:

Birth certificate

Death certificate

Marriage certificate

Social Security card

Automobile titles

Property Deeds

Insurance policies

Bank, investments, and retirement account statements

If you want to plan ahead, ask yourself: Do you have an organized filing system, or are all your important documents strewn about in different places? As you organize your family’s documents, make sure the appropriate people have access to the information they will need in the event of an unexpected death.

Notify The Appropriate Contacts

There are a few people you will need to contact who will be able to help you through the process of taking care of the deceased’s finances. As soon as you are able, reach out to their financial advisor, insurance agent, attorney, and accountant. These professionals are trained to know how to handle an unexpected death, and they will be able to direct you to the right sources of information and help you make the best decisions possible.

Take Care Of Immediate Financial Needs

When someone close to you dies, there are many time-sensitive tasks that need to be taken care of. These tasks often have a financial element involved. For example, when making funeral arrangements and covering burial expenses, be sure to review life insurance policies and look for any pre-arrangement details or last wishes the deceased may have left. Some expenses may be covered, which will save you a financial headache. Speak to the deceased’s financial advisor to see if there are any easily accessible funds set aside for bills or debt payments that cannot be deferred.

Review Benefits

Surviving family members may be entitled to certain benefits, such as Social Security benefits and perhaps pension benefits, life insurance, and annuities. Contact the human resources department of the deceased’s employer, who can explain and document the following benefits that may be available to you, including:

Life insurance

Healthcare, or extended healthcare coverage through COBRA

Compensation due, such as stick options or unused vacation pay

401(k) or pension

Depending on your relationship to the deceased, you may need to apply for Social Security survivor benefits, update insurance beneficiaries, and apply for settlement.

Manage Their Estate

Finances can get messy when someone dies. Our financial lives can be complicated, so use this list as a starting point for closing accounts, updating information, and taking care of the countless details. Look into whether the deceased had any of the following accounts and contact the institution:

Checking Account

Savings Account

Brokerage Account

IRA

401(k)

403(b)

Health Savings Account

Flexible Spending Account

College Funds

Don’t forget about debts. Debts don’t disappear when someone passes away. Investigate the following and make sure those who are now responsible for these debts are aware of the creditor’s name, outstanding balance, name on the debt, loan terms, and the amount, timing, and method of payments.

Mortgage

Home Equity Line of Credit

Automobile Loans

Personal Loans

Student Loans

Credit Cards

Make sure you don’t forget about recurring household expenses, such as utilities, and how and when to pay them: .

Property Taxes

Electricity

Sewer

Water

Natural Gas

Garbage

Telephone

Cable TV

Internet Service

Landscaping

House Cleaning

Homeowners Association Dues

Other organization membership dues

Work With A Trusted Advisor

Handling the details after the death of a loved one can be overwhelming, but you don’t have to do it alone. Financial professionals are experienced with these situations and can guide you through the steps that apply to your unique circumstances. They will not only help you take care of pressing problems and concerns, but can also help you feel more secure in a time of financial change. A financial advisor can make sure your affairs are in order, update your financial plan, and implement appropriate strategies to help you stay on track financially.

Protect yourself from these tax-related scams.

Tax-related scams have become increasingly common, and they happen year-round.  Fraudsters will contact you pretending to be from the Internal Revenue Service (IRS), a tax accounting service, or another tax-related agency.  You could receive fake emails, phone calls, letters, or other communications.

Be on high alert for phishing emails. Scammers are attempting to steal information such as tax IDs, account information, passwords, and other valuable data.  Be immediately suspicious of any unsolicited communication (email, text message, letter, or call) that asks you for your Social Security number, login credentials, or other personal information.

Review these helpful FAQs:

• Will the IRS contact me via email?

The IRS will never initiate contact with you via email, text messages, or social media with a request for personal or financial data. Be extremely careful with any unsolicited email that claims to be from the IRS.

• What should I do if I receive an email or text message claiming to be from the IRS or another tax service that asked for sensitive information?

Do not reply! Do not click on any links or download any attachments. Forward any IRS-related emails to phishing@irs.gov.

• What should I do if I discover a website claiming to be the IRS that I suspect is not legitimate?

Do not click on any links, download any files, or submit any information. Send the URL to phishing@irs.gov

• Are there any trusted resources I can use to identify email scams or websites claiming to be
  the IRS?

The IRS highlights examples of email scams and bogus websites. Find the information online at www.irs.gov/uac/Report-Phishing and https://www.irs.gov/newsroom/tax-scams-consumeralerts.

• What should I do if I receive an unsolicited phone call or letter claiming to be from the IRS that
  I suspect may not be legitimate?

Contact the IRS yourself to confirm any requests made via phone or letter, particularly those that are threatening or demand immediate payment. Visit www.irs.gov/uac/Report-Phishing for phone numbers and other tips.

• If I receive a suspicious tax-related email while at work, should I notify my company?

Yes! Report suspicious emails to IT. The IT team can help you determine if a message is legitimate. In addition to confirming requests for your personal data, you should verify any email that asked you to provide copies of W2 forms or your coworkers’ tax-related information.