Nobody likes to think about death, but yet we all have to face it sooner or later. The grief that dominates us when a loved one passes away can be immensely overwhelming. Then to make matters worse, the survivors need to figure out how to best move forward and settle the estate and financial affairs. Below is a checklist of estate items that need to be taken care of after a loved one passes away. Many of these tasks need to be handled by the executor of the estate, which would be named in the deceased’s estate planning documents.

Hire an estate settlement attorney: This may be the estate planning attorney of the deceased or another law firm experienced in settling estates. This attorney should drive the process in many ways and help to install the executor.

Secure property: Make sure their home and vehicles are safe, secure and locked. Also arrange for anything that may need regular care around the home. Notify the police so they can help keep an eye on it.

Locate the original will and other estate planning documents: Depending on the nature of previous estate planning, you may need to take some documents to the city or county office to have it accepted for probate. Your estate attorney hopefully can help with this process. If a person has died intestate (without having made a valid last will), then the intestacy laws of the state where the person lived will determine who will inherit their property; probate is still typically required.

Locate important personal documents: These may include driver’s license, social security card, passport, birth certificate, divorce decree, marriage license, property deeds, contracts and military separation papers among others.

Access safe deposit boxes at the bank: While these are less common, some people still have these boxes. Contact the bank to gain access.

Contact financial advisors, primary bank, brokers, insurance agents and accountants: Rely on these professionals to help you through the process and make it as easy as possible to wind down the estate.

Order sufficient copies of the death certificate: You may need 10 or more certified copies, depending on their financial activities. The funeral director usually will take care of ordering these.

Notify the person’s employer (if applicable): Work with the employer about any pay owed, life insurance and other benefits (pensions, etc.).

Set-up an Estate Bank (Checking) Account at the bank: This will receive and distribute funds that flow through the estate and allow the executor to pay bills.

Have the post office forward the mail: This will help to identify bills that need to be paid and accounts that may need to be closed. Pay the bills on time.

Contact the Social Security office: Do this regardless if the person was already receiving benefits by calling 1-800-772-1213. There may be survivor benefits or possibly a small lump-sum benefit. If the person was receiving benefits, they will need to discontinue the monthly payments.

Look into veterans’ benefits (if applicable): Call the VA at 1-800-827-1000 or check out their website.

Notify all financial institutions and utility companies: This includes but is not limited to banks, investment companies, mortgage companies, credit card companies, and insurance companies in addition to all of the utility companies providing service. The estate settlement attorney will guide you on how to wrap up financial accounts. You may need to provide financial institutions with either an official death certificate or copy of one. Be sure to close outstanding credit cards. For financial accounts, you will need the date-of-death value and for taxable investment accounts, you will need to request a step up in basis to the date-of-death value.

Insurance policies: Find out if the deceased had any life insurance policies – work with the insurance agent or company to have these paid out. Cancel other insurance coverage – this may include health insurance, homeowners/renters insurance (after the property is sold) and car insurance among others. If on Medicare, the Social Security office should inform Medicare in regards to parts A and B. Contact the insurance company that provided any supplemental Medicare coverage to cancel.

Try to identify online accounts and activity: Closing these to prevent fraud or unauthorized activity is important. Don’t forget about social media accounts.

Cancel driver’s license: This can help to prevent identity theft.

Make sure final tax returns are prepared: A final income tax return as well as an estate return will need to be filed, usually by an accountant. Generally, the estate tax return is due 9 months after the date of death – a 6-month extension can be requested.

TIPS for surviving spouse

Don’t make emotional decisions: When under emotional stress, many people rush into rash decisions they later regret. Take your time and make sure all decisions are the best ones.

Ask for help: Rely on other family members or friends to help you through the process. Lean heavily on a trusted financial advisor, who can often help with tracking down financial institutions and coordination with the estate attorney.

Revisit your own estate planning: When a spouse passes away, your own estate planning will need to be updated to make sure your wishes for your own estate are eventually followed.

Estate Planning is about more than the preparation of vital documents:

• Will
• Durable Power of Attorney
• Healthcare Proxy/Power of Attorney
• Beneficiary Statements
• Trusts

These documents may not always feel like pressing needs or be particularly fun to think about, but for the sake of your loved ones, it’s important to be prepared.

We tend to put these items off in light of more immediate concerns or expenses, but life events are unpredictable. This is a case of “hope for the best, plan for the worst.” Take the extra time and resources now to avoid complications later.

In addition to the legal documents, we encourage clients to consider the bigger picture.

Talk with your family about the critical issues of aging when you are still healthy. Too often families wait for a crisis before they talk, then it might be too late. Opening the lines of communication when everyone is healthy can help assure a smooth transition between the generations, preserving the family’s legacy, protecting the family’s assets, and maintaining family unity.

Questions to consider

• Would your loved ones benefit from a “family meeting” where everything is explained?
• Does your family know your funeral wishes?
• Have you made introductions to your trusted advisors (attorney, CPA, investment advisor)?
• Does your executor/executrix know about your plans and wishes? If they are a family member, do they want the job? Do they have the time and skills to manage the estate or would a corporate entity be a better choice?
• Does your Durable Power of Attorney understand your finances and the investment philosophy? Do they have easy access to your accounts and statements?
• Lastly, are there up-to-date records of usernames and passwords? Have you considered digital assets like your email account, Facebook, LinkedIn, Twitter, iTunes, etc.?

Health Care Wishes

Perhaps you feel like your finances are in order, but you don’t know where to start with health care.

Where would you like to receive care:

• In your home for as long as possible
• Skilled care facility – How will this be paid for?

3 resources to help get you started

• Five Wishes® is a document that has been created to help people more effectively communicate their intentions when they get seriously ill. Please request a copy from your Conrad Siegel consultant
• The Conversation Project also explores end of life planning, helping to organize one’s thoughts about their needs and wishes. Please request a copy from your consultant
• “File of Life” is a tool to establish one central location to maintain all your important medical data and emergency contacts. http://www.folife.org/

Medicare is a health insurance program operated by the federal government and benefits are available to qualifying individuals 65 or older.

Parts of Medicare

Deductible, coinsurance and copayments may apply to all of the below.

Part A
Hospital/Hospice Insurance

• Covers inpatient hospital stays, some skilled nursing facility, hospice and eligible home health care.
• No premium if you qualified for enough credits via the FICA Medicare payroll tax you paid during your working career!

Part B
Medical Insurance

• Helps pay for some services and products not covered by Part A, generally on an outpatient basis.
• Monthly premium is based on income.

Part C
Medicare Advantage Plans

• Variety of supplemental plans to Parts A & B offered through Medicare contracted private insurance.
• Separate monthly premium.

Part D
Prescription drug plans

• Helps pay for prescription drug costs.
• Separate monthly premium.

Medigap Policies
(Medicare Supplement)

• Private supplemental policy that fills the “gaps” within the Medicare Part A & B coverage, including some of the deductible and coinsurance expenses.
• Separate monthly premium.

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If Still working and can still receive medical insurance via employer:

Employer has fewer than 20 employees:

• Medicare is the primary provider
• Sign up for Medicare up to 3 months prior to turning age 65 at medicare.gov

Employer has 20 or more employees:

• Employer plan is the primary provider if IRS defined group health plan.
• Can sign up for Part A (premium-free) when you turn age 65.
• If you are on spouse’s employer plan, ask employer if non-working spouses can remain on plan after eligibility for Medicare.
• Because Medicare Part B requires a monthly premium, you may choose to delay enrollment in this plan while you still are covered under you or your spouse’s employer’s plan as an active employee.
• If you retire past the age of 65 and are coming off your employer’s group health plan, you have an 8-month special enrollment window in which you can sign up for Medicare Part B. If you do not enroll during this window, you may have to wait for coverage and will be subject to a penalty for late enrollment.

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If Retired and Medicare will be the primary medical insurance:

For those already receiving Social Security retirement benefits

• You’ll automatically get Part A & B starting the first day of the month you turn 65. You’ll receive your Medicare card in the mail about 3 months before your 65th birthday. If you don’t want one or both parts, contact Medicare.
• Make decisions on other health coverage (Parts C, D, Medigap, or Supplemental

For those not receiving Social Security retirement benefits

• Sign up for Medicare up to 3 months prior to turning age 65 at medicare.gov

When trying to envision your retirement, a big question for many is, “How much money will I need to retire?”

A lot depends on how long you may live, how your assets are invested, and how much spending you plan on doing in retirement. There are two ways you can estimate your retirement expenses

• Income Replacement Ratio Method
• Detailed Expense Analysis Method

Let’s get started! First, grab your paystub, last year’s tax returns, and current financial statements. Once you have your documents ready download our Retirement Roadmap to get started!

Very few things in life are as important as getting your financial house in order.  While many New Year’s resolutions dissipate rather quickly, here are a few MORE resolutions to get you one step closer to getting your financial house in order.

The Setting Every Community Up for Retirement Enhancement Act, better known as the SECURE Act, was signed into law on Friday, December 20th, 2019. This is the first major piece of retirement legislation in over a decade. It has been characterized as “monumental and sweeping” given the rule changes associated with Traditional IRAs.

Here are the major changes that will be affecting individual investors:

RMDs Will Start at Age 72, Not 70½ – Starting on January 1, 2020
The new law pushes the age at which you need to start withdrawing money from your Traditional IRA to age 72, from age 70½. If you turned 70½ in 2019, you will still need to take your RMD for 2019, no later than April 1, 2020. If you are currently receiving RMDs because you are over age 70½, you must continue to take your RMD. Only those who turn 70½ in 2020 (or later), may wait until age 72 to being taking required distributions.

You Can Contribute to Your Traditional IRA after Age 70½
Beginning in the 2020 tax year, the law will allow you to contribute to your Traditional IRA in the year you turn 70½ and beyond, provided you have earned income.

Inherited Retirement Accounts
The new legislation eliminates the so-called “stretch” provision, starting on January 1, 2020. Upon the death of the account owner, distributions to individual beneficiaries must be made within 10 years. If you are already taking required minimum distributions (RMDs) from an inherited IRA, you will not be affected. There are exceptions for spouses, disabled individuals, and individuals not more than 10 years younger than account owner. Minor children who are beneficiaries of IRA accounts also have a special exception to the 10 year rule, but only until they reach the age of majority.

Adoption/Birth Expenses
Another new option for parents seen in the new law allows penalty-free withdrawals from retirement plans for birth or adoption expenses up to certain limits ($5,000). Such withdrawals would still be subject to income taxation, only the 10% penalty is waived.

Expanded Provisions for 529 College Savings Plans
The definition of qualified higher education expenses is expanded to include student loan payments and the costs of apprenticeship programs. Withdrawals of as much as $10,000 from 529 education-savings plans can be used for the repayment of student loans.

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As with all major Federal legislation there are gives and takes. The give was the extension of the RMD start date by 18-months to age 72. The take was significant, the elimination of the stretch provision for inherited IRAs. This means that inherited IRAs will be taxed sooner and at potentially higher rates than before. As a result, individuals need to reevaluate the legacy objectives associated with their traditional IRA assets. Some of the considerations in planning may include: Roth conversions, Qualified Charitable Donations (QCDs), Charitable Remainder Trusts (CRTs) and bequeathing other assets.

Roth Conversion – convert traditional IRA funds into a Roth IRA. You would pay the taxes now, but your beneficiaries’ withdrawals would be tax-free under current law. This strategy also benefits if marginal tax rates increase in the future. It would be best to do a series of smaller conversions over a number of years to spread out your tax burden.

Qualified Charitable Donations (QCD) – make a donation directly from your IRA to a qualified charity. The donated amount is excluded from taxable income, possibly resulting in a lower tax bill. This is the best money to give to charity, as it has never been taxed, and will not be taxed in the future.

Charitable Remainder Trust – an IRA can be left to a Charitable Remainder Trust (CRT). This would act as a stretch IRA, even under the new rules. A non-charitable beneficiary, such as a child, would receive annual payments from the CRT over his or her lifetime (or a pre-determined period of years), with income tax assessed as the payments are made. Whatever remains in the account upon the child’s death (or the expiration of the term of years) would pass to one or more charities of the your choosing tax-free.

Bequest Other Assets – instead of passing on the IRA, deplete those savings and bequeath assets from your taxable accounts. Taxable accounts will receive a step-up in basis at the time of death. Because the beneficiary is free to sell inherited stocks whenever they wish, they can time their sales to mitigate a steep tax bill, rather than being forced to make withdrawals during a 10-year window.