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7 Steps to Plan your Finances when a Parent dies

Finances are an essential part of our life. One starts planning before their child arrives or during the course of their life and career. But what about death? Do we need to think about finances and money then, especially with your parents? The earlier one understands that death is a part of life’s certainties, the better. Nobody likes to think about death or losing their loved ones, especially, their parents. But this is the truth that one will face sooner or later at some point in their life.

It is best to plan and be aware of what needs to be done. After all, it is not uncommon to see financial problems crop up within a family after the death of a parent. It can be an overpowering task to deal with the finances, especially when one is emotionally down. You have little idea as to where to start and what paperwork needs to be done. See here to read more before choosing what steps to take next.

Here are some essential steps to keep you going on the right track.

  1. Ask for help and assistance
    For those who have no clue as to what to do, should not hesitate to ask for help. Get in touch with a monetary advisor who can coordinate with attorneys and track down accounts while you deal with your emotions.
  2. Call the boss or the company
    If your parent was still working, you need to call his boss or the HR department of his company to let them know of his death. It is essential not just to notify them but also inquire about any benefits and coverage for the spouse or family members.
  3. Make several copies of the death certificate
    One of the most crucial documents is the death certificate, that would be required for all the financial transactions and dealing. Perhaps you want to close the account or transfer assets or make a claim. Just have an adequate number of copies ready and attested.
  1. Collect any necessary financial documents
    You may need to study the decedent’s accounts and sort through his mail for at least the last couple of months. There might be non-recurring bills, debts or any other missing information. Get help from other family members and seek legal help.
  2. Prepare to file tax returns
    You must prepare a final tax return for your parent for the next year. It is essential to get the information required to make the process easier.
  3. Avoid emotional decisions
    It is indeed a very emotional and distressing phase. Don’t rush into anything and do not take any decisions that you might regret later. Keep your emotions stable and follow good advice. Most people are no ready for the death of their parents and have little clue on what they’ll leave behind.