Death & Money: Dealing With Finances When Someone Passes Away

If you're reading this, I'm earning money. Thanks for helping to feed my family. Please see our disclosure for more information. Also, any advice provided is for informational purposes only. I'm not a CPA, lawyer, or doctor, although my parents wanted me to be all three. So, talk to a professional before acting on anything you read below.

death and money

Dealing with death and money at the same time is not easy. 

Today's contributed post carefully touches on this tough subject. But, it's something we will all have to deal with at some point unfortunately.

*******

We don’t tend to want to dwell on the morbid and the macabre.

But death is one of the very few inevitabilities that come hand in hand with life.

There are various things that we can do to prepare for our own passing to ensure that everything is carried out as we wish.

We can also take steps to organize our own finances so that upon passing we do not owe money to anyone and we don’t have other forms of outstanding debts.

But when it comes down to it, we can’t take cares of matters once we have already passed and someone else will have to take on at least some level of responsibility to ensure that boxes are ticked and that work surrounding finances after our passing is completed.

This logic applies to almost everyone. So, if someone near to you does pass away, chances are that there are going to be a few different steps that you will have to take in order to ensure that their financial matters are dealt with as they wished.

Of course, finances are not likely to at the forefront of your thoughts, and they are not going to be something that you particularly want to get involved with or deal with.

But it something that you will have to face at some point or another.

So, here are a few steps that you can take to make the process as simple as possible for everyone involved when dealing with death and money.

Related to death and money:

Ensure Their Will Is Carried Out

Most people will write a will during their lifetime.

This can detail all sorts of things, but generally speaking, the majority of focus throughout the will is likely to be placed on finances and assets.

The will is essentially a legal document that determines how a late individual’s money and assets will be distributed upon their passing.

It is extremely important that this will is carried out, regardless of whether you agree with your loved one’s logic or reasoning.

After all, you need to respect their wishes. You may have to employ legal help within this process.

When considering the subject of death and money, the area of law that you will be dealing with is “probate law”. You should contact specialists within the field such as DaveBurnsLaw.com.

They will be able to ensure that the individual’s will regarding their estate is upheld and that everything is settled legally.

Any outstanding debts may be deducted from the individual’s estate before it is then distributed.

Life Insurance

People with dependents tend to take out a life insurance policy.

This will provide any dependents with a payout should the person who is signed up to the policy pass away while their policy is in place.

The money handed over to dependents could be used to cover funeral costs or tide things over during a period of mourning, when they might have to take time off work.

Whatever it is used for, it can prevent dependents from having to take out loans or credit in order to get by.

This is why you should check whether your loved one had a life insurance policy. You can then ensure that any listed recipients receive what the departed has been paying for over their lifetime.

Selling Belongings

We tend to build up a wide variety of belongings throughout our lifetime.

Our homes are full of bits and bobs for our own benefit. So, when someone passes away, you’re likely to have to sift through their belongings in order to clear the property that they have left behind.

This can be a difficult and emotional process, and their is support out there that can help you to complete it.

But many people are left at a loss when it comes to knowing what to do with the belongings.

Many will keep a few sentimental items, but are unsure what to do with the rest.

One option is to donate items to charity shops. An alternative is to sell the items and donate the money to a charity.

Some people will sell the belongings and use the proceeds to cover funeral costs.

If your loved one has requested that you sell their belongings and keep the money, you should do as they wish.

Moving On: Death and Money

Finances really aren’t going to be the first thing to jump to the forefront of your mind when dealing with the passing of a loved one.

And it’s important that you don’t rush into dealing with their finances if you are not ready for the process.

But you need to feel ready and comfortable to take on the challenge.

Hopefully, the above advice on death and money can help to guide you in the right direction!

Leave a Comment:


Warning: Missing argument 2 for Jetpack_Subscriptions::comment_subscribe_init(), called in /home/runthemo/public_html/wp-includes/class-wp-hook.php on line 286 and defined in /home/runthemo/public_html/wp-content/plugins/jetpack/modules/subscriptions.php on line 602

CommentLuv badge

1 comment
Tim Yaotome says March 7, 2019

I find it interesting that you suggested that one should hire a lawyer while a deceased friend’s or relative’s will is executed. Reading this tip convinced me to hire one as early as now. That way, I could lend their services to any of my relatives so that their children would not feel too burdened with their inheritance in the future.

Reply
Add Your Reply