Final Matters

The death of a spouse, parent, child, or loved one is a very difficult experience. Yet during this period of grief and emotional readjustments, you may be called upon to make many important financial decisions. There are many papers you will need, and steps that must be taken. Here's a list of the basic actions you will need to take during the first few months after the death of your loved one. Claiming Benefits Social Security If the deceased had paid into Social Security for at least 40 quarters, two types of benefits are possible: 1. Death benefit: $255 for burial expenses is available to eligible spouses or dependent children. The survivor can complete the necessary form at the local Social Security office, or the funeral director may complete the application and apply the payment directly to the funeral bill. 2. Survivor's benefits: A variety of benefits are available depending on the age and relationship of any survivors. You may be eligible for benefits if you match any of these circumstances: - Spouse age 60 or older - Disabled surviving spouse age 50 or older - Spouse under 60 who cares for dependent children under 16 or disabled children - Children of the deceased under the age of 18 or who are disabled Call 800-772-1213 for an appointment with the nearest Social Security office to inquire about benefits and eligibility. When applying for survivor's benefits, you will need to have birth, death, and marriage certificates, Social Security numbers, and a copy of the deceased's recent federal income tax return. Veteran's Administration If the deceased was receiving monthly payments already, you will need to notify the VA of the death. If the deceased was a veteran who received a discharge other than dishonorable, survivors may get $300 toward funeral expenses and $150 for burial costs. Burial in a national cemetery is free to a veteran, spouse, and dependent children. Veterans are also eligible for a headstone or grave marker. The surviving spouse and dependent children of disabled veterans may also be entitled to a lump sum death benefit, monthly payments, such as educational assistance and medical care. Check with the regional VA office about your eligibility for the different types of veteran's benefits and the documents you will need to apply for benefits. Employer Benefits Many employers provide life, health, or accident insurance. Be sure to contact all past employers, including federal, state or local governments, to see if you are entitled to death benefits, continued health insurance coverage for the family, or payments from an annuity or pension plan. If the deceased belonged to a union or professional rganization, check to see if they offer death benefits for their members. Also find out about any credit union balances. Collect the Necessary Papers Before you can file for various benefits and take care of other financial matters, you will need to collect a variety of documents. View checklist of papers you may need. Contact Insurance Companies In addition to life insurance, check to see if other forms of insurance covered the deceased. Some loans, mortgages, and credit card accounts are covered by credit life insurance, which pays off account balances. Contact each insurance company about how to claim the policy benefits. If you can't find the individual policies among the deceased's papers, check the checkbook or paycheck stubs for premiums paid. Generally, life insurance proceeds are paid directly to the named beneficiary. Most companies offer to pay the benefits in a lump sum or as fixed payments over time. Claim Benefits Veterans, Social Security, and employee benefits may be available to you. Unions and other professional organizations provide benefits as well. Learn more about benefits. Begin Probate Probate is the court-supervised process of paying the deceased's debts and distributing the estate to the rightful beneficiaries. Jointly owned property, property in trust, and assets with a designated beneficiary (life insurance, 401(k), pensions) do not go through the probate process. If the deceased did not have a will, state law will determine how the deceased's assets and property will be distributed to family members. The court will appoint a personal representative or the person named in the will as executor to manage the deceased's affairs. Contact the probate court in the state where the deceased lived for details.

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