Insurance & Taxes

Insurance is pervasive in our lives - Life, Auto, Motorcycle, RV, Boat, Home, Renters, Liability, Flood, and Dependent Health insurance, to name a few. 

Each plan will need to be evaluated. Not everything can be can be canceled immediately!

If there are rental properties, and the renters have leases, they may not have to move out immediately. 

Likewise, if a relative is living in the deceased's home, they may have to stay on until other arrangements can be made. 

Normal insurance policies for liability, for example, would have to be continued.

There is also the issue of life insurance - usually one way to immediately access to liquid funds. However, if you are widowed and have young children, you might want to check with your insurance agent to discuss the various options that will enable you to optimize the ionger term benefits for your children.  

Unfortunately, obligations for filing and paying taxes do not cease upon death. Personal income taxes for the deceased will have to be filed and potentially paid in the year of his or her death. In addition, taxes remain in the financial picture until the deceased's estate is settled, and all assets are distributed. 

Part of this would potentially include:

• Paying capital gains taxes on any investment that is liquidated
• Income tax on a pre-tax account, such as an IRA or 401K account that is liquidated

This situation implies the eventual payment of income taxes on investments, capital gains, and pre-tax retirement accounts when the estate is settled. 

Generally, your accountant will be able to assist with the estate filings, or your lawyer will be able to recommend someone familiar with all the requirements.