What to do when a loved one dies-logistical arrangements need immediate action

SENIOR RESOURCE-PART 1

This information is provided as part of the Senior Focus Resource by Robann Arshat, GRF member resources liaison. Part 2 will cover state taxes, changing ownerships and titles, credit cards, general finances and professional assistance.

The death of a loved one or spouse precipitates a period of grief that can be a time of confusion and heartache. It is also a time that many important financial and logistical arrangements need immediate attention.

The following checklist has been compiled to help Leisure World residents prepare and handle the many details that must be attended to whether or not prior arrangements were made.

Collecting the Papers

The first step is to collect the necessary papers to file for various benefits and to finalize the estate.

1. Copies of the death certificate You will need to give copies of the death certificate to give to many of the offices or agencies you contact. You can purchase certified copies of the death certificate through your funeral director or directly from the county health department. There will usually be a charge per certificate. People generally need 10-15 copies; if you need more, you can order more. It will take a couple of weeks to get these copies from the funeral home.

2. Copies of all insurance policies Collect all your insurance policies, life insurance policies, homeowners’ insurance and car insurance.

3. Copy of marriage certificate If the spouse of the deceased will be applying for benefits, a marriage certificate will be needed. Copies are available at the Office of the County Clerk where the marriage license was issued.

4. Social Security number Social Security numbers of the deceased and spouse can be found on the death certificate.

5. Copy of a certificate of military discharge

If the deceased was a veteran, military discharge papers (honorable or other than honorable) can be obtained by contacting Department of Defense’s National Personnel Record Center, 9700 Page Blvd., St. Louis, MO 63132.

6. A copy of the will or trust

The lawyer of the deceased may have the will or trust, or it may be in a safe deposit box or with the personal belongings of the deceased.

7. A complete list of all property

This includes real estate, stocks, bonds, savings accounts and personal property of the deceased.

Land titles, stock certificates and other financial papers may be stored in a safe deposit box or other secure place.

Insurance Policies

The deceased may have had several types of insurance policies. These could include:

• Life insurance.

• Mortgage or loan insurance.

• Accident insurance.

• Auto insurance.

• Credit insurance.

• Credit card insurance.

• Various types of insurance provided by the employer of the deceased.

The proceeds from an insurance policy can generally be paid directly to the named beneficiary. These claims are usually processed quickly and can be an important source of money for survivors. You should file claims for insurance policies as soon as possible, especially if finances are a concern.

You may need to make a decision regarding the type of payment plan you desire.

Your options might include taking the money in a lumpsum payment or having the insurance company make fixed payments over a period of time. The decision depends on your financial situation. You may want smaller fixed payments to have a steady income and to pay less tax on the money. Or you may want the full amount immediately to pay bills or to invest. You should consider consulting a lawyer or financial advisor about this decision.

Social Security

The deceased is considered to be covered by Social Security if he/she paid into Social Security for at least 40 quarters. Check with your local Social Security office to determine if the deceased was eligible.

Contacts:

• Social Security Administration Office, 800-772-1213, www. ssa.gov.

• Social Security Garden Grove, 877-669-3115.

• Social Security Long Beach, 888-256-2631.

If the deceased was eligible, there are two types of possible benefits.

• Death Benefit: To receive a death benefit of $255 toward burial expenses, people must complete the necessary form at your local Social Security office, or you can ask the funeral director to complete the application and apply the payment directly to the funeral bill. This payment is made only to eligible spouses or to a child entitled to survivor’s benefits.

Survivor’s Benefits:

• If the spouse is age 60 or older, he/she will be eligible for benefits. The amount of the benefit received prior to age 65 will be less than the benefit due at age 65 or over.

• Disabled widows age 50 or older will be eligible for benefits.

• The spouse of the deceased who is under 60 but cares for dependent children under 16 or for disabled children may be eligible for benefits.

• The children of the deceased who are under the age of 18 or disabled may also be entitled to benefits.

Appying for SS Benefits

When applying for Social Security benefits, you should have available birth and death certificates of the deceased, marriage certificate of the spouse, birth certificates of any dependent children, Social Security numbers, and copies of these deceased’s most recent federal income tax return.

Veterans Benefits

If the deceased was a veteran who received a discharge other than dishonorable, the survivors may be eligible to receive a lump-sum payment of $300 for burial expenses and an allowance of $150 for purchase of a plot in a private cemetery. Veterans are also eligible for a headstone or grave marker provided without charge. The funeral director often can help you apply for these benefits or contact the local Veterans Administration Office.

• VA Benefits Hotline: 800-- 827-1000.

• VA National Cemetery Administration, Long Beach: 800-535-1117, www.cem.va.gov.

• VA Headstones and Markers: 800-697-6947.

The surviving spouse and dependent children of veterans receiving disability benefits may also be entitled to monthly payments. Check with the local veterans Administration office.

A VA benefits advocate can help you understand and apply for Veterans death benefits and survivor compensation.

• War Era Veterans Alliance, Kristy O’Brien, 714-616-4000.

Employee Benefits

If the deceased was employed at the time of death, the survivor should contact the employer regarding any benefits for the survivors. The employer may have provided life, health or accident insurance that will yield payments. The deceased may be due a final paycheck for vacation or sick leave. If the death was work-related, there may be worker’s compensation benefits.

You should contact all past employers, including federal, state or local government, to determine if survivors of the deceased are entitled to any payments from a pension plan.

If the deceased was already retired and received a pension, you should check with the employer to determine if survivors will continue to receive a pension payment and whether the payment will be reduced.

The Will or Trust

Hopefully a valid will or trust, signed by the deceased, is available. Try to locate a copy of it. Check with the lawyer, family and friends of the deceased who might know where the will or trust is kept. It may be stored in a safe deposit box, which is sealed at the time of death in some states.

If the deceased did not have a will or trust, this is referred to as dying “intestate.” In this case, the estate, including property and assets belonging to the deceased, will be disbursed according to state law. This will not include property where the title is in the name of the deceased and another person. This property will automatically pass on to the co-owner.

In California, if the deceased did not have a will or trust, the property of the deceased will be distributed according to this formula:

• All of the community property is disbursed to the spouse. As to any other property, if there is only one child, one-half to the spouse and one-half to the child.

If there is more than one child, one-third to the spouse and two-thirds to the children. Other distribution laws will be followed if there is no spouse or no children.

Contact the probate court for details.

Probate

Probate is the legal process of distributing the estate of the deceased to the rightful heirs. This process usually entails:

• The appointment of an individual by the court to act as a “personal representative” or “executor” of the estate. This person is often named in the will or trust.

If there is no will or trust, the court will appoint a personal representative, usually the spouse or a relative.

• Proving that the will or trust, if it exists, is valid.

• Informing interested parties, especially heirs and beneficiaries, that the will or trust is being probated.

• Disposing of the estate by the personal representative in accordance with the will or trust or the laws of the state.

In California, the Superior Court has jurisdiction over the probate process.

The spouse or personal representative named in the will or trust must file a petition with the court within 30 days after death. There is a filing fee for this process.

Depending on the size and complexity of the probatable assets, you may require legal assistance.

Probatable assets do not include property where the deceased and someone else are listed as owners. Proceeds from a life insurance policy or Individual Retirement Account (IRA) that are paid directly to a beneficiary are also not subject to probate.

Federal Estate Tax

Because of changes in recent years, very few estates now must pay federal estate tax. Estate tax is due on estates exceeding $600,000. Contact your local Internal Revenue Service office for form 706.

A federal estate tax return must be filed, and taxes paid within nine months of the date of death.

Consult your tax attorney or tax advisor.