In Case of Death

IN CASE OF DEATH:

A to-do list for those left behind

In the initial weeks after a family member dies -- long before you distribute assets or pay off creditors -- someone needs to tackle the following tasks. Most usually fall to the estate's executor.Get death certificates. Estimate how many you need and ask for twice as many, suggests Ann Perry, author of The WI$E Inheritor (Broadway Books, $12.95). You'll need certified copies to claim insurance proceeds and to transfer money out of bank, brokerage and mutual fund accounts, among other things. Twenty is not an unreasonable number, says Perry. You'll save yourself trouble by letting the funeral home get them for you.

Have the mail forwarded.

The bills and financial statements that come in the mail are often the most reliable way to find all the deceased person's assets and debts. The mail will also be your trigger to cancel newspaper and magazine subscriptions, cable-TV service and other recurring expenses, and to request refunds where appropriate.Hold the bills. Before you pay even the phone bill, the executor needs to determine if there are enough assets to cover all bills and expenses. If not, creditors have to line up -- with state law determining which have priority. (An exception: If a survivor continues to live in a home, you should continue to pay the mortgage and utility bills.)

Open a bank account.

You'll need a place to deposit interest and life-insurance proceeds, and from which to pay bills for the estate.

Apply for a taxpayer-ID number.

The IRS considers the deceased person and his or her estate to be separate taxpaying entities. So you'll need a separate tax-identification number to file tax returns for the estate, which will account for dividends, interest and capital gains on the deceased person's assets during the administration of the estate. (You can skip this if the income is less than $600.)

You'll also need to file final federal and state income-tax returns, accounting for your family member's earnings until the date of death. A federal estate-tax return is due if assets in the estate exceed $1 million in 2003 (that figure jumps to $1.5 million in 2004 and 2005).

Notify social security. If the person was receiving social security benefits, you'll have to return the check for the month he or she died, even if the death occurred at the end of the month.Buy a notebook. "Immediately start writing everything down," advises Florida attorney Mary Sue Donohue, such as who you talked to at the insurance company and the bank. "There's a lot to keep track of," she says.

CASE OF DEATH: A to-do list for those left behind
In the initial weeks after a family member dies -- long before you distribute assets or pay off creditors -- someone needs to tackle the following tasks. Most usually fall to the estate's executor.
Get death certificates. Estimate how many you need and ask for twice as many, suggests Ann Perry, author of The WI$E Inheritor (Broadway Books, $12.95). You'll need certified copies to claim insurance proceeds and to transfer money out of bank, brokerage and mutual fund accounts, among other things. Twenty is not an unreasonable number, says Perry. You'll save yourself trouble by letting the funeral home get them for you.
Have the mail forwarded. The bills and financial statements that come in the mail are often the most reliable way to find all the deceased person's assets and debts. The mail will also be your trigger to cancel newspaper and magazine subscriptions, cable-TV service and other recurring expenses, and to request refunds where appropriate.
Hold the bills. Before you pay even the phone bill, the executor needs to determine if there are enough assets to cover all bills and expenses. If not, creditors have to line up -- with state law determining which have priority. (An exception: If a survivor continues to live in a home, you should continue to pay the mortgage and utility bills.)
Open a bank account. You'll need a place to deposit interest and life-insurance proceeds, and from which to pay bills for the estate.
Apply for a taxpayer-ID number. The IRS considers the deceased person and his or her estate to be separate taxpaying entities. So you'll need a separate tax-identification number to file tax returns for the estate, which will account for dividends, interest and capital gains on the deceased person's assets during the administration of the estate. (You can skip this if the income is less than $600.) You'll also need to file final federal and state income-tax returns, accounting for your family member's earnings until the date of death. A federal estate-tax return is due if assets in the estate exceed $1 million in 2003 (that figure jumps to $1.5 million in 2004 and 2005).
Notify social security. If the person was receiving social security benefits, you'll have to return the check for the month he or she died, even if the death occurred at the end of the month.
Buy a notebook. "Immediately start writing everything down," advises Florida attorney Mary Sue Donohue, such as who you talked to at the insurance company and the bank. "There's a lot to keep track of," she says.