Understanding and handling their affairs
The death of a friend or relative – even when expected – can be devastating for their loved ones. It can take time to mourn and heal from the loss. This can make it extremely difficult to manage your friend or relative’s affairs. In this difficult time, we hope to provide clear and structured guidance on the steps that should be taken. This will help you protect their things, manage their accounts, and pass their belongings on to the correct heirs.
A few days out
Secure their belongings and plan funeral arrangements. First, determine whether any of the decedent’s property needs to be safeguarded or accounted for. This can include valuable assets, cars, vacant real estate, or other possessions. Be sure to ask yourself: who has keys to vehicles and properties? Who is able to access the decedent’s possessions?
Ensure that cremation, burial, and/or funeral arrangements have been made. The funeral home should order death certificates from the proper state department. In Arizona, you can also order them yourself online, through the Arizona Department of Health Services.
If you publish an obituary that contains the decedent’s address, or if the address is publicly available (i.e. through county records or the phonebook), consider securing the home or asking someone you trust to watch it during the funeral. Do not publish the day or month of birth in any obituary; a new form of identity theft may use this information to assume the identity of your loved one.
A week out
Find any instructions they left. Your loved one may have left a letter of instruction, document containing final wishes, or a will or trust. Check with any family members that might be aware of its location, and read it thoroughly. It may be helpful to consult with an attorney to understand what this means.
You may need to go through the probate process to ensure their belongings pass down in accordance with their wishes. We recommend making an appointment with a probate or trust administration attorney to discuss the property in the estate, any applicable estate taxes, and answer any questions you might have. You can learn about Arizona’s probate process here, and about how we can help here.
Account for their mail and records. You can contact the U.S. Post office to request that mail be delivered to the deceased’s personal representative or trustee (if applicable). You can learn about your options here. Note that some may require court proof that you’re authorized to manage their affairs.
This is also a good time to start locating any important records of theirs: account statements, titles, deeds, life insurance policies, or anything else that might help understand the deceased’s belongings at the time of death. (If you find that they did have a life insurance policy, you’ll want to notify them of the death, and request claim forms.)
A few weeks out
Obtain and send death certificates. Order at least one death certificate for each account or major asset owned by the deceased; if you’re not sure, it can be helpful to order 7 certified copies from the funeral home or from the state.
Once you have death certificates, you’ll want to send photocopies to the three credit bureaus (Equifax, Experian, and TransUnion). This is an important step in preventing identity theft. It’s also a good idea to cancel the decedent’s driver’s license, so that they know to refuse any requests for duplicates they might receive. You may need to send a photocopy of the death certificate to the MVD as well.
Start managing bills and debts. Cancel the decedent’s credit cards and any other charge accounts as soon as possible, letting them know the decedent has passed away. During this time, you’ll also want to obtain any bills they might have owed. For example, reach out to the hospital, labs, or nursing homes they may have received services from to ensure you have a final bill. If any bills are past due, or must be paid immediately, find a source of the deceased’s funds for payment. And if any creditors reach out demanding payment, notify them of the death. They can let you know how the account should be managed.
Within a month
Notify organizations. If the funeral home hasn’t yet done so, notify Social Security of the death, in addition to any organization paying a pension, retirement, or annuity payment. Note that if they’ve made a direct deposit in that time, it may be reversed upon notice of the death.
Prepare a final inventory. You’ll want to gather and sort financial records you can find, including records of assets titled jointly. These may include, but are not limited to:
- Bank & money market accounts
- Mutual funds
- Brokerage accounts
- Certificates of Deposit
- Bond (including U.S. Savings Bonds) and Stock Certificates
- All promissory notes where decedent was entitled to receive payment
- Deeds to real property
- Any appraisals of jewelry or other valuable personal property owned by the decedent
As part of this process, it’s a good idea to obtain the final account balances on any mortgages, loans, checking, and savings accounts.
Once you have all this information, notify a CPA, tax preparer, enrolled agent, accountant, or bookkeeper. Let them know of your loved one’s death, and request an inventory of the estate. You may need a final income tax return. They might be able to provide you more guidance on what the situation calls for.
Finally, you’ll want to bring these documents, any estate plans, and a death certificate to a probate or trust administration attorney. If the decedent had a trust, it might require that assets get reallocated into sub-trusts. This can require both an accounting and a legal professional. Get advice on how to minimize any applicable taxes.
We can help
The process of managing affairs after the death of a loved one can be complex. If you would like more guidance, our Phoenix and Tempe probate attorneys can point you in the right direction. Learn more about our probate services here, and call 480-442-4175 to see how we can best assist you during this difficult time.