After Death, Legal and Financial Responsibilities: Part Two

By Sharon Ravenscroft, Esq.

When a loved one dies, there are various legal and financial responsibilities that arise. This is the second of three articles to address these responsibilities. The prior article addressed identifying information and creditors. This article addresses identifying and distributing financial accounts. The final article addresses transferring real property.

Collect information regarding the decedent's financial and investment accounts. Look for checking accounts, savings accounts, CDs, or electronic stock accounts, IRAs, 401(k)s, pensions and other retirement accounts. To get a complete list, look through the decedent's wallet or purse, any file cabinets, the incoming mail and prior tax returns.

For accounts titled as joint tenancy with right of survivorship or if there is a "pay on death" ("POD") or "transfer on death" ("TOD") designation, then in most cases a death certificate can be presented to the financial institution and the funds will be distributed to the surviving joint tenant or the named beneficiary.

When ordering death certificates order many, because you will need one for each account, each piece of property and a couple for government use.

For accounts titled in the name of the decedent without a joint tenant with right of survivorship or without a "POD" or "TOD" designation, if the total value of such financial accounts and personal property of the decedent exceeds $50,000 then a probate court proceeding will be necessary. Probate is court process required for the distribution of a decedent's assets. If the total is $50,000 or less, then the accounts can be distributed through a small estate affidavit.

After Death, Legal and Financial Responsibilities: Part One

After Death, Legal and Financial Responsibilities: Part Two

After Death, Legal and Financial Responsibilities: Part Three