Skip to main content

Mainstreet Credit Union, Lenexa, KS

  • Accounts & Services
    • Savings
    • Checking
    • Investments
    • Youth Accounts
    • ATM/Debit Card
    • Mobile & Online
    • Visa Gift & Reload Cards
    • Other Services
    • Rates
  • Loans
    • Vehicle Loans
    • Personal Loans
    • Student Loans
    • Credit Cards
    • Home Loans
    • Rates
  • Resource Center
    • My Mortgage
    • My MasterCard®
    • Reorder Checks
    • Advice
    • Auto Avenue
    • Financial Calculators
    • FAQs
    • Other Useful Links
  • Discover Mainstreet
    • About Us
    • Join Us
    • Careers
    • Community
    • The Credit Union Difference
    • Mainstreet Talk
    • Annual Report
    • Locations/ATMs & Hours
    • Contact Us









Routing Number: 301079183

Advice

  • Credit and Debt
    • Credit
    • Debt
  • Money Management
    • Banking
    • Budgeting
    • Saving
    • Spending
  • Family Finances
    • Life Events
    • Insurance
    • Identity Protection
    • Kids & Money
    • Financial Crisis
  • Workplace Finances
    • Employee Benefits
    • Paycheck Planning
    • Retirement Plans
  • Home Ownership
    • Buying a Home
    • Mortgage
    • Home Equity
    • Refinancing
  • Paying for College
    • Saving for College
    • Financing College
    • Repaying Student Loans
  • Retirement Planning
    • Saving for Retirement
    • Social Security
    • Living in Retirement

A Death in the Family

A Death in the Family

One of the most emotionally vulnerable times in your life is also one of the times when you’ll need to do the most financial paperwork. The good news is that there are plenty of resources to help. Don't be overwhelmed by the tasks ahead of you. Seek support from other family members as you deal with the financial implications of a death in the family. When you take things step by step, you'll make it through everything in the end.

Gathering financial paperwork

After a death in the family, you'll need many types of legal and financial documents to sort out the deceased's finances and how they might impact those immediately around them.

The major documents needed include 10 to 20 copies of the death certificate, the original birth and marriage certificates. Find the deceased's will, if there is one and any life insurance policies. You will also want the most recent financial statements for all bank accounts, credit cards, mortgages, auto loans, and investment accounts. In addition, you will need tax returns from the last couple of years and applicable Social Security statements.

This information might be difficult to find if you were not responsible for the management of the deceased finances. Often, they are stored in filing cabinets at home or in a safe-deposit box at the bank. Check with those closest to the individual to see where they might have kept this type of documentation.

Assessing the financial situation

Once you've collected all of the documents, the executor of the will can begin sorting out the financial situation of your loved one. The first step is to file a probate petition in court to get legal authorization to handle the finances. The executor will then need to log all liquid and property assets, and identify any debts secured against them, such as a mortgage or auto loan. Other debts, called unsecured debts, are also logged. In general, assets left over after paying debts are distributed to heirs as outlined in the will.

If it was your spouse who passed away, you'll also want to assess your immediate financial situation and cash flow. Your deceased spouse will no longer receive paychecks, Social Security benefits, and other payments, which may leave you in a tough financial spot. Take a look at your immediate expenses and plan where you will get the money to pay for these. If you do not have any liquid funds or income, you'll quickly need to collect benefits and transition assets to be able to continue paying your bills.

Collecting benefits

You'll need to contact many institutions to notify them of the death and request benefits for which you are eligible during the weeks and months following your loved one's death. First, contact the Social Security Administration to report the death and collect death benefits if you are eligible. You also may be able to get ongoing survivor benefits. If your loved one had a life insurance policy, you would need to contact the insurance company to report the death and arrange for dispersal of benefits to the beneficiaries.

There are also other potential organizations to reach out to regarding death benefits. If the deceased was a member of the military, the Veteran's Administration would issue benefits. Employers also may have benefits available, including a separate life insurance policy and payouts of accrued sick time, vacation time, and bonuses. When receiving all of these benefits, put them in a safe bank account or investment account to use them as needed, planning for your future rather than spending them rashly while you are grieving.

Transitioning assets

The last major stage to go through is to transition assets to their new owners, as outlined in the will. You will need to call all of the financial institutions at which the deceased held accounts and notify them of the death. Then you'll need to either withdraw the assets to transfer them to new owners or change the name on the account to the new owners. When handling retirement accounts, such as an IRA or 401k, you may want to roll over funds to your account rather than withdrawing them. Cancel insurance policies, memberships, and subscriptions you no longer need.

Your last step is to file an estate tax return within nine months of the death. In addition, you are responsible for filing a tax return for the deceased in the year of the death, presuming there was income during that year. When you have completed these steps, you'll be done handling the finances and be ready to move forward on your own.

Copyright

Related Content

Article

Helping Your Parents with their Finances
Rebuilding Credit After Bankruptcy
Suddenly Unemployed
Can Credit Counseling Help?
Debt Payoff Strategies
Dealing with Large Medical Bills
Selling a Home That is Financially Underwater
Dealing with a Home Foreclosure
Are You Prepared Financially for a Natural Disaster?
In Case of Medical Emergency
Housing Relief Options and COVID-19
Reselling Your Stuff
If You're Facing Bankruptcy
Making a Comeback from a Financial Setback
Working with Creditors
Managing Your Finances After a Job Loss
Preparing Financially for a Climate Changing World
Why Budgets Fail
Should You Get a Second Job?
Preparing for an Economic Downturn
A Death in the Family
Avoiding the Minimum Payment Trap
When Your Home is a Money Pit
Avoiding Costly Car Repair Mistakes
Revisiting Your Budget During a Crisis
Managing Debt When You're Unemployed
The End of a Marriage
Mortgage Relief Scams
Paying for Rehab and Addiction Treatment

Poll

Are you worried about losing your job?
Are you keeping up with your mortgage payments?
Do you have healthcare coverage?
What is your employment status?
Have you, or are you considering, filing for bankruptcy?
Do you have a will?
Is the amount of spousal or child support you pay reasonable or unreasonable?

Mainstreet Credit Union, Lenexa, KS


  • Careers
  • Security
  • Privacy & Disclosures
  • NMLS Lender ID#: 465931




©

Mainstreet Credit Union.

Equal Housing Lender


You will be linking to another website not owned or operated by Mainstreet CU. Mainstreet CU is not responsible for the availability or content of this website and does not represent either the linked website or you, should you enter into a transaction. We encourage you to review their privacy and security policies which may differ from Mainstreet CU.