Accounts & Benefits

Remember,  a Power of Attorney no longer is valid after one's death. 

Everything that person possesses becomes part of their estate - which means that without a joint signatory on a bank account, bills will not be paid, and legally, access to their accounts may be restricted. 

Bank accounts, safety deposit boxes, investment accounts, mortgages and loans, estate taxes, etc. are in limbo until the financial fiduciary has the appropriate paperwork to allow an Executor/Person-In-Charge access to funds. 

Likewise, the deceased may have received social security, disability or veteran benefits. The possibility of survivors benefits, especially for young dependents, will need to be sorted out. 

While funds from a life insurance policy may be distributed immediately upon notification of death, regular financial accounts will require death certificates and other information.

For every account, you may need to provide a Death Certificate - that is why we suggest extra copies from the start! 

As an overview, we want to remind you that as a part of your planning (with your financial advisor, estate advisor, and lawyer), you should be creating a list of all your accounts, including:

• The account/portfolio number
• The name and address of the financial institution where they are held
• The name and contact details of someone at the financial institution
• The name of any join signatories or key holders
• If there are associated beneficiaries with the account, the names and contact details for each beneficiary

UPDATE & KEEP INFORMATION CURRRENT

We will use the term "accounts" in its widest definition, encompassing (among others):

• Transaction accounts
• Money market accounts
• Savings accounts
• Loans, including credit cards, mortgages, student loans, auto/boat/ motorcycle/motor home
• Safe Deposit boxes
• Stock & Bond/investment/real estate portfolios
• Cryptocurrency accounts

When my good friend passed, she had an IRA at a bank, and at the time, she established the IRA, she had designated her then husband as the beneficiary. Not only had they divorced, buthe had predeceased her by almost 20 years! In my communications with the bank, they requested a copy of his death certificate (rightly so), but he had a very common name (along the lines of 'John Smith'). I was not sure when he passed. Luckily, my late friend had kept a copy of his death certificate in her papers, saving me a lot of time and frustration.

Again, we stress ordering extra death certificates at the start  - easing your headaches for unexpected hurdles down the road.

Remember, a Power of Attorney ends with the death of the grantor. Even if you have established a power of attorney for any account(s), we urge you to consider having a second signer on your account. It would provide access to your account for that person to meet financial commitments during the process of settling the estate, potentially a prolonged undertaking. 

Yes, your lawyer will work with your designated Executor/Executrix or Person-in-Charge (PIC) to collect the assets as quickly as possible, but this will still take time - and bill payments will continue to mount. The original Power of Attorney no longer is valid after one's death. 

A loan obligation does not cease with your death. Any lender will expect to be paid in full from the proceeds of the estate (that means credit cards too). 

This is one reason to ensure access to liquid assets (typically checking/savings accounts) by an additional signatory. 

Your lawyer will start the process to access all assets, including the liquid assets, but in the meantime, delinquent payments may mean the security for the loan will be called and late payment fees assessed.  A car/boat/motorcycle can be repossessed easily by the lender and sold to recoup the loan. 

The same is true for any real property mortgage you own at the time of your death. The mortgage company/bank will expect the monthly mortgage payments to be met. Also, they may anticipate that the payments may be assumed /refinanced by one of the beneficiaries, or paid off with assets of the estate. 

If no action is taken, the mortgage company will take possession of the property and move forward to auction it off and pay the mortgage.

Any of these situations creates additional burdens on your Executor/Executrix or PIC and the lawyer. It delays not only the settlement of the estate, but also increases legal and accounting costs.  

With a safe deposit box, you will definitely need to have at least one additional signer. 

If you don't, the financial institution will have to drill out the locks of the box, which can be costly. 

If you choose not to give the information on the location of the key(s) to the box, make sure that you provide the location information on the safe deposit key(s) to your attorney or other trusted party for easier access.

It is also helpful for the person left dealing with your estate and personal effects to have a list of what is contained in the box. Storing the key and the list in the same place would be advantageous. 

There are various options available for survivors/family members of people who received Social Security or Disability, 

To fully understand what will best for the survivors - especially minor children -  we suggest checking with the individual agencies.

For Social Security and Disability benefits, click the button below or go to www.ssa.gov

Likewise, there are various options available for survivors/family members of people who received Veterans benefits. 

To fully understand what will best for the survivors - especially minor children -  we suggest checking with the Veterans Administration by clicking the button below or going to www.benefits.va.gov

Speak with your life insurance agent before claiming on a spouse's life insurance policy - especially if minor children are involved. They will be able to walk you through various options to optimize the long-term benefit for beneficiaries.  

Generally investment accounts have specific beneficiary designations. These portfolios may be taxable or non-taxable retirement & educational savings or cryptocurrency accounts

Dealing with insurance and both individual/estate taxes

Continguency plans and royalties payments