Key insights
- Start by gathering critical documents, ordering death certificates, and notifying key institutions so essential benefits and account transfers can begin without delay.
- Lean on estate advisors — typically a CPA, probate attorney, and CFP® — to coordinate tax, legal, and financial decisions and reduce costly missteps.
- As you settle the estate, avoid rushed, emotion-driven financial changes and keep your long-term plan (including retirement, taxes, and beneficiaries) front and center.
Get the assistance you need following the death of a loved one.
Losing a loved one is one of life’s most traumatic events, and nothing makes mourning more overwhelming than being thrust into making financial decisions.
Some tasks will demand your immediate attention, like funeral arrangements and costs (if not already pre-planned). Many other decisions can wait for weeks or even months, but some administrative wheels, such as those of insurance companies, investment firms, and creditors, begin turning right away.
Whether you’re the executor or trustee of someone’s estate, a surviving spouse, or a family member, you’ll have to gather a long list of documents; contact banks, insurance companies, and other financial organizations; and make many important decisions.
Explore steps to prepare yourself for the financial choices connected to losing a loved one.
Educate yourself on financial and estate concepts
You may come across language and terminology you’re familiar with, or you’ll encounter terms you have heard before but you’re not entirely sure what they mean — estate, trust, and probate, to name a few.
There are many online resources to help guide you through the unknown, and checklist to help walk you through your specific situation. In addition, you should engage a team of professionals to help you understand the vocabulary and concepts of personal finance.
Surround yourself with the right advisor team
Before making any major decisions, assemble a team of trusted professionals to help with planning and paperwork. Even the simplest estate has many moving pieces requiring professional assistance. If your loved one or spouse didn’t already work with an attorney, accountant, and financial planner, you may find their specific experience and resources invaluable.
Some of the most experienced and knowledgeable financial planners have their Certified Financial Planner® or CFP® designation, and can work closely with your CPA and attorney on any planning needs. CFP® professionals are held to a fiduciary standard to put your best interests first.
What can each of these financial professionals do for you during this time?
Tax professional (often a CPA)
- Complete and file tax returns (individual, joint, and estate tax)
- Develop tax strategies (filing status, tax bracket, and other changes resulting from the death)
Probate attorney
- Create or dissolve trusts
- Represent you in will probate proceedings
- Represent your interests in disputes and settlements
Wealth advisor
- Coordinate legal and tax issues
- Advise on Social Security strategies
- Assist with notifications to financial institutions, insurance companies, brokerages, and others
- Manage investments and insurance proceeds
What does an estate executor do?
An estate executor serves as a fiduciary, meaning they’re legally responsible for acting in good faith and in the best interests of the estate and its beneficiaries. Executors can face personal liability if duties aren’t handled properly and may need to navigate complex family dynamics, which is why professional guidance is often recommended.
The role involves:
- Carrying out the wishes outlined in the will
- Overseeing estate administration and probate-related matters
- Coordinating financial, tax, and legal tasks
- Funding and administering trusts that extend beyond the estate administration
Estate executor checklist
Knowing what to expect can make it easier to manage the finances of a departed loved one. Here are a few steps you can take to understand and organize the process. Get CLA’s full estate executor checklist.
- Locate legal documents (wills, trust documents, real estate deeds and titles)
- Locate other financial documents and personal account information (life insurance policies, bank, brokerage, and credit card statements, tax returns, promissory notes for loans and mortgages)
- Order copies of the death certificate
- File for a tax identification number (TIN) for decedent’s estate
- Research Social Security survivor benefits
- Contact the decedent’s employer and former employer(s) about retirement plans and group life insurance policies
- Contact insurance companies, banks, and brokerages for payouts and transfers
- Verify and update your personal accounts and beneficiaries
- Update personal items that will either be paid by a sole individual or will no longer be used going forward, such as utilities, subscriptions, and/or memberships
- Work with the estate executor (if not yourself) to make sure the decedent’s bequests from the will are distributed in a timely and accurate manner
- Work with a CPA to file the tax return and close out the estate if all affairs have been completed
Seeking more financial guidance through life’s transitions? Download our Women and Wealth guide.
Keep an eye on your financial future
No matter your age or health, there are people counting on you. It’s OK to grieve and be vulnerable, but you need to continue looking to your future. Don’t jump into any decisions that could alter yours or someone else’s retirement plans, cause financial hardship, or have negative tax implications. Give your emotions time to settle before you make any big financial decisions.
How CLA can help with financial considerations for estate executors
CLA wealth advisory and tax professionals help people in all stages of life handle difficult financial decisions. Our experienced professionals take the time to know you and help preserve a personal and financial legacy. We can help you with current personal situations or help you proactively plan for the future.