Whether it comes unexpectedly or after a prolonged illness, losing a loved one is never an easy experience. And while some would prefer to have an uninterrupted grieving period, there are many arrangements which must be made and personal affairs to get in order. Much of this burden can be relieved, however, by simply knowing what to do and how to best proceed.
What must I do if a loved one passes away?
Until an individual sees to it that his or her personal needs are fulfilled, it will be difficult to proceed with other pressing business. As such, when a loved one passes away, the most important thing individuals can take care of is their personal well being. Unfortunately, however, beyond taking care of individual and family needs, there is still more to handle:
• Paying for the funeral: Although some individuals pre-pay for their funeral and burial, these costs are generally taken from their estate after death. As such, many funeral homes allow some time for the estate to open before collecting payment. In other instances, however, a family member may have to cover the costs of the funeral until estate funds are available for repayment. Similarly, a life insurance policy may cover funeral costs, but coverage is typically not available until after the funeral is over.
• Obtaining death certificates: Death certificates must be presented to various creditors, lien holders and business associates when handling a loved one’s legal affairs. The easiest method of obtaining death certificates is from the funeral director and individuals should request as many as twenty to avoid having to reorder.
• Remove decedent’s name from joint accounts: Although not required by law, it is generally a good idea for spouses to remove their deceased husband or wife from joint accounts.
• Make proper notifications: It could be quite helpful to notify several people or institutions in the event of a loved one passing away. For instance, it might be beneficial to contact Social Security, a representative from the decedent’s 401(k) Plan, and the decedent’s banker.
• Contact an attorney: Nearly every death brings its own set of unique legal circumstances. Because it is not uncommon for complex probate issues or will disputes to arise, individuals are very wise to have an experienced attorney to help resolve complex legal issues.
What is Probate?
Put simply, probate is the process by which the court supervises the division of an estate. The court appoints a personal representative to collect assets, pay debts and taxes and distribute what remains of the estate to beneficiaries. This entire process could take a few months, sometimes longer. Attorneys specializing in probate can be a great service to those trying to navigate the probate process.
Must all assets go through Probate?
Generally speaking, only assets that are distributed by a will must be probated. The following is a list of assets that do not pass through probate:
• Assets held in a revocable trust
• Life insurance policies
• Annuities
• Retirement assets
• Assets held jointly with a right of survivorship
Although these assets are not required to pass through probate, they may carry certain tax consequences. As such, it is always helpful to seek legal counsel when making end of life financial preparations.
Does a Power of Attorney lose effectiveness upon death?
Fairly recent changes to Arizona law provide the option for certain powers of attorney to remain effective after the principal passes away. Common directives which retain effectiveness after death include specific guidance on burial and cremation decisions and even general authority for an agent to make all funeral and burial dispositions.
