While you may not need to handle these tasks right away after the death of a loved one, you’ll want to take care of these things within a few months to help avoid complications.
Pay special attention to IRAs
Contact the IRA provider to figure out if any Required Minimum Distributions (RMDs) must be withdrawn. It’s important to know that if your loved one was taking RMDs and had not yet taken the withdrawal for the year, the RMD must be taken before December 31.
If you’re the beneficiary of the IRA, talk to your legal or tax advisor to help determine the best course of action for you.
Notify banks, brokerages, and other financial institutions
If you’re a joint owner of any bank accounts, you still may be able to use cash in the accounts or access lines of credit. Many joint accounts are owned with the right of survivorship, which means that when one owner dies, the surviving person is the sole owner of the account. It's sensible to track any money spent until the estate is settled.
If the bank accounts are solely owned, it’s important to leave them untouched. Once the executor has the necessary documents, they’ll typically be able to use cash in financial accounts to pay creditors.
In some cases, the accounts may have been set up as transfer on death accounts, which allows the account owner to name a beneficiary—or more than one. The beneficiary can go to the financial institution with the required documents and take ownership of the account.
Even if you don’t have the required documents yet, it can be a good idea to notify financial institutions as soon as possible to help avoid fraud or identity theft.
The executor may need a tax ID and bank account for the estate
The estate may need a bank account to receive money from the sale of any assets, to pay creditors, and disburse funds to beneficiaries.
To open a bank account, you’ll need a tax ID number for the estate.
Contact credit card companies
Notifying credit card companies can help prevent new charges from recurring bill payments and accruing interest. It can also help avoid identity theft. If you’re a joint owner on a credit card account, you should be able to continue using the account even after notifying the credit card company.
Ask whether there are any death benefits associated with each credit card.
Contact insurance companies
Notify insurance companies. There may be life, home, auto, and personal property insurance policies. It’s important to ensure that coverage will continue while the estate is settled.
Contact the mortgage company, if applicable
Notify credit bureaus
Contact one of the 3 credit reporting agencies, Equifax, Experian, or TransUnion to notify them of the death. Notifying one of the companies will get the account flagged at all 3 credit bureaus so that no credit will be issued in your loved one’s name.4
It can be a good idea to also request credit reports from each of the 3 agencies. They’ll show all open accounts.
Cancel memberships, subscriptions, and services
You may find information about outstanding services and subscriptions from credit cards or bank account statements. To avoid ongoing billing, it’s important to find these accounts and cancel them as soon as possible. This could include everything from gyms and cell phone plans to online games and streaming services.