6 Steps When A Loved One Passes

FaithFi: Faith & Finance | Jan 14, 2025

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Show Notes

Losing a loved one is a time of profound grief and confusion, and the practical tasks that follow can feel overwhelming. Settling a loved one’s estate requires careful attention and preparation. Let’s walk through six financial steps to take during this challenging time, all underpinned by prayer and reliance on God’s guidance.

Begin with Prayer

Before addressing financial matters, take time to pray. Invite God into your decisions and ask for wisdom. James 1:5 reminds us, “If any of you lacks wisdom, let him ask God, who gives generously to all without reproach, and it will be given him.”

Prayer offers clarity and comfort, helping you approach the estate settlement process with confidence and peace, knowing the Holy Spirit is interceding on your behalf (Romans 8:26).

Step 1: Obtain the Death Certificate

The death certificate is a critical legal document you’ll need to settle your loved one’s affairs. It’s usually prepared by the medical examiner and provided through the funeral home.

You’ll need multiple copies for various purposes, such as notifying financial institutions, filing taxes, and starting probate. If you don’t receive the death certificate within a few weeks, contact the funeral home or your local vital records office.

Step 2: Begin the Probate Process

Take the death certificate and the will to your county probate office to file a petition to begin probate. As the executor, you can then carry out the deceased’s wishes.

If there’s no will, the process becomes more complex. You’ll still petition the court to begin probate and may request to be named administrator of the estate. However, the court will decide how the estate is distributed according to state law. For guidance, consider consulting a Certified Kingdom Advisor (CKA). Visit FaithFi.com and click “Find a Professional” to find a trusted advisor.

Step 3: Notify Financial Institutions and Advisors

Inform the deceased’s financial institutions, banks, and financial advisors of their passing. Advisors can help identify assets and ensure they’re handled correctly.

Check for accounts with Transfer on Death (TOD) or Payable on Death (POD) instructions. These accounts can often bypass probate, simplifying the process.

Additionally, notify the three credit reporting agencies—Equifax, TransUnion, and Experian. Provide the death certificate to close accounts and check for fraudulent activity.

Step 4: Address Insurance Policies

Contact the deceased’s life insurance company to begin the claims process and provide the death certificate and policy details.

Also, cancel other unnecessary insurance policies, such as auto or disability insurance, to avoid ongoing payments for no longer required services.

Step 5: Notify Government Agencies

Ensure the appropriate government agencies are informed of your loved one’s passing. The funeral director often notifies Social Security but confirm that this has been done.

Notify Medicare and, if applicable, the VA or other government programs. This step helps avoid complications and ensures benefits are properly adjusted.

Step 6: File Final Taxes

The final step is filing the deceased’s taxes, including any outstanding returns. This is often best handled by a professional, such as a CPA, to ensure compliance and accuracy.

While these tasks may seem overwhelming, prayer and preparation can guide you through. Remember, you are not alone in this journey. Lean on God’s wisdom and the support of trusted professionals to navigate this season with grace and confidence.

On Today’s Program, Rob Answers Listener Questions:

My able-bodied older sister has been relying on our family for financial support for the past 8 years, even though the work she chooses doesn't provide enough income. Should we continue supporting her, or is that not helping her in the long run?
My wife and I will inherit an IRA from my mother-in-law. The IRA and a brokerage account contain over $300,000 in cash. However, the money market account yield has dropped from 5.3% to 4.5%. Where should we invest this cash with the stock market looking richly valued?
I'm 70 and retired, and I need to get a new car. I currently owe $27,000 on my home. Should I pay off the remaining mortgage, which would increase my monthly payment, or should I get a car that would cost around $20,000, which would lower my monthly payment? I don't know where to get the money to do either.
My 91-year-old dad has a $3,500-$4,000 monthly shortfall in his long-term care expenses and is down to his last $25,000. I'm considering a reverse mortgage for him, as this could allow him to stay in his home for another 2.5 years. What are your thoughts on the different types of reverse mortgages and whether this could be a good option for his situation?

Resources Mentioned:

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