10 Money Moves After an Unexpected Family Death

The loss of a loved one can shake a family to its core. But amidst the sadness and mental fatigue, family members will need to attend to their loved one’s financial affairs. Handling money in the aftermath of someone’s death often can feel overwhelming. Fortunately, following a few key steps can make the process easier.

Keep reading to find 10 money moves to make and an unexpected death in the family. 

1. Get Official Copies of Death Certificates

When you’re ready to dive into finances after a loved one passes, you’ll need copies of their death certificate. Plan on reaching out to the vital records office in the state where your family member died and request 10 or more copies. You can apply for these in person or online, and death certificates will be necessary to work with banks and insurance companies to handle your loved one’s finances. 

2. Consider a Wrongful Death Claim

A car accident or other negligent action could have contributed to the wrongful death of a loved one. If so, you could consider a wrongful death claim to seek compensation for losses. Just be sure to look at eligibility requirements and legal processes first, and then reach out to a skilled attorney. 

3. Report the Death to the Employer

Your loved one’s employer should be notified of their death. You may be able to secure wages that were due in a forthcoming paycheck, as well as vacation pay. Look into whether your family member had a life insurance policy through their employer, as well. And if your loved one owned a business, understand what goes into selling it or transferring ownership. 

4. Freeze Personal Accounts

The last thing anyone wants to deal with after a death is financial loss due to an unauthorized entity accessing your loved one’s accounts. But data breaches are a reality. That’s why it’s so important to suspend or close their personal accounts connected to savings and investments. Stop any automatic payments you see in their bank records and look carefully for signs of suspicious activity. 

5. Record All Financial Assets

What kinds of financial accounts did your loved one have? Document all company-sponsored retirement plans, savings accounts, and brokerage accounts. If your loved one had a jewelry collection or other valuable assets, note those, as well. You’ll be able to settle the estate more easily with a comprehensive listing. 

6. Tackle Debts

Your loved one likely carried some debts, like a mortgage or student loan. You may be able to have some loans forgiven in the event of a death. So, check with a qualified estate attorney before continuing payments. 

7. Secure Digital Accounts

If your loved one had a presence on social media accounts and email, you’ll want to secure those accounts. Grab any significant photos or conversations before closing an account. 

8. Look at Insurance Policies

After a loved one passes, check into their life insurance policy right away. Money from the policy can help cover costs related to the funeral and other urgent expenses. Make sure to look at health, home, and auto insurance policies, as well, and provide notice of the death.

9. File a Final Income Tax

Know that you’ll need to file a final income tax return for your loved one. This process can feel fraught when you’re dealing with grief, so it’s wise to work with a tax professional. You may need to submit an estate tax filing, too. 

10. Get Help Coping with Grief

Finally, don’t be afraid to reach out to professional counselors or local support groups for help coping with your loss. Some financial specialists are particularly adept at working with families dealing with loss. Ultimately, you’ll navigate the processes with a steadier hand when you’re emotionally stable.  

Take the Right Financial Steps

Being intentional about bringing closure to your loved one’s financial assets and accounts is essential. You’ll be able to ensure a smoother transition for everyone and make the estate settlement process easier. Reach out to legal and financial professionals. And know that you’ll be honoring your loved one’s name and work by taking action on their behalf.