Dealing with a departed loved one's finances

It's never easy losing a loved one. Dealing with finances quickly after a loss can help you get your life back on track. Our article covers steps on how to close accounts and transfer ownership.

Losing a loved one is a painful, devastating part of life. It can be even harder when you have to settle your loved one's estate in the midst of your grief.

Whether you're the executor of the person's will or a family member offering help, there are a number of important steps to complete. JJ Montanaro, USAA CERTIFIED FINANCIAL PLANNER™, offers advice on handling the most crucial tasks.

1. Notify financial institutions.

When the funeral home notifies the Social Security Administration of the death, ask it to request at least 25 copies of the death certificate to send to credit card companies and banks. Don't forget other, less-obvious accounts such as cellphone plans and gym memberships. "You'll probably spend some time looking through statements, tax returns and other documents to find everything, unless the deceased left a letter of instruction," Montanaro says. "It's also a good idea to send copies of the death certificate directly to the credit bureaus to stop credit card offers."

2. Initiate probate.

If certain assets require probate, or the approval of a will, the executor is responsible for filing the will with probate court. Montanaro suggests consulting an estate lawyer to assist with the process. "If the survivor of the deceased is his or her spouse and everything is owned jointly, they may not have to go through probate for anything," he says. "But a lawyer can help determine that and also help avoid any missteps."

3. File beneficiary claims.

Life insurance policies, investments and other accounts with a named beneficiary generally aren't subject to probate. That means you can start filing claims right away to have funds available for short-term needs or to pay off any unsettled debts. The process is straightforward, requiring a death certificate and completion-of-claim paperwork.

4. Seek help with veterans benefits.

Fortunately, most counties have a veterans service office with people trained to assist survivors with applying for benefits. The American Legion or the Veterans of Foreign Wars also have veterans services officers who can help. "The VA has a whole host of benefits that survivors could be entitled to, but it may be difficult to tap into those resources if you aren't familiar with that system," Montanaro says.