Immediate Action Items When Settling Your Parents' Estate

Immediate Action Items When Settling Your Parents’ Estate

Written By: Ryan Rink, CFP®, EA, ChFC®, CLTC®

estate planning

Losing a parent is never easy. There is no way to truly brace for the emotional weight that comes with it. And on top of that, you’re suddenly faced with a long list of financial and logistical tasks that need to be handled right away. Over the years, I’ve helped many families navigate this exact situation. Though each family’s circumstances are different, a few common steps can help ease the process during a challenging time.

Notify Family and Engage Your Advisor

After notifying close family members, we typically suggest that the trustee/executor reach out to us (the financial advisor). Once we are made aware of the client’s passing, we’ll act as the “quarterback” and help coordinate between the deceased’s estate attorney, CPA, and other professionals. The estate attorney handles legal filings and interprets the will/trust language, while the CPA manages tax filings and helps identify any potential estate tax issues. As the financial advisor, we are already familiar with the deceased’s finances and can help you make informed decisions early on, before you move money or sign any documents. We will help coordinate liquidity, manage investments, and assist beneficiaries in planning wisely.

Locate Estate Documents

It’s helpful if you’re able to locate the original estate documents. In most instances, we already have copies of the current documents on file. Key documents include, but aren’t limited to:

Wills
Trusts
Marital Property Agreements
Personal Property Memorandums

Obtain Death Certificates

You will want to obtain several certified copies of the death certificate – we usually recommend around 10. You’ll need these to handle almost everything that follows, from insurance claims to bank accounts. A funeral home can help you obtain them and handle notifications to Social Security.

Notify Banks, Investment Firms and Credit Bureaus

We will work with you to notify banks, investment firms, insurance companies, etc. One item that is often overlooked is notifying the major credit bureaus – Equifax, Experian, TransUnion and Innovis. Making them aware of parents’ passing will help prevent any identity theft shortly after death.

Ensure Liquidity for Immediate Needs

Cash flow is often overlooked shortly after the passing, but it’s important. The estate will need liquidity to cover funeral expenses, taxes and professional fees. You can work with the financial advisor to determine where that liquidity will come from.

Losing a parent is incredibly challenging, and handling their financial affairs can feel overwhelming. Having a clear plan and the right team around you can make all the difference. Don’t hesitate to reach out to your Shakespeare advisor at (262) 814-1600 with any questions.