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6 Steps When A Loved One Passes

Faith And Finance / Rob West
The Truth Network Radio
January 14, 2025 3:00 am

6 Steps When A Loved One Passes

Faith And Finance / Rob West

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January 14, 2025 3:00 am

Losing a loved one is a time of profound grief and confusion, and the practical tasks that follow can feel overwhelming. Settling a loved one’s estate requires careful attention and preparation. Let’s walk through six financial steps to take during this challenging time, all underpinned by prayer and reliance on God’s guidance.

Begin with Prayer

Before addressing financial matters, take time to pray. Invite God into your decisions and ask for wisdom. James 1:5 reminds us, “If any of you lacks wisdom, let him ask God, who gives generously to all without reproach, and it will be given him.”

Prayer offers clarity and comfort, helping you approach the estate settlement process with confidence and peace, knowing the Holy Spirit is interceding on your behalf (Romans 8:26).

Step 1: Obtain the Death Certificate

The death certificate is a critical legal document you’ll need to settle your loved one’s affairs. It’s usually prepared by the medical examiner and provided through the funeral home.

You’ll need multiple copies for various purposes, such as notifying financial institutions, filing taxes, and starting probate. If you don’t receive the death certificate within a few weeks, contact the funeral home or your local vital records office.

Step 2: Begin the Probate Process

Take the death certificate and the will to your county probate office to file a petition to begin probate. As the executor, you can then carry out the deceased’s wishes.

If there’s no will, the process becomes more complex. You’ll still petition the court to begin probate and may request to be named administrator of the estate. However, the court will decide how the estate is distributed according to state law. For guidance, consider consulting a Certified Kingdom Advisor (CKA). Visit FaithFi.com and click “Find a Professional” to find a trusted advisor.

Step 3: Notify Financial Institutions and Advisors

Inform the deceased’s financial institutions, banks, and financial advisors of their passing. Advisors can help identify assets and ensure they’re handled correctly.

Check for accounts with Transfer on Death (TOD) or Payable on Death (POD) instructions. These accounts can often bypass probate, simplifying the process.

Additionally, notify the three credit reporting agencies—Equifax, TransUnion, and Experian. Provide the death certificate to close accounts and check for fraudulent activity.

Step 4: Address Insurance Policies

Contact the deceased’s life insurance company to begin the claims process and provide the death certificate and policy details.

Also, cancel other unnecessary insurance policies, such as auto or disability insurance, to avoid ongoing payments for no longer required services.

Step 5: Notify Government Agencies

Ensure the appropriate government agencies are informed of your loved one’s passing. The funeral director often notifies Social Security but confirm that this has been done.

Notify Medicare and, if applicable, the VA or other government programs. This step helps avoid complications and ensures benefits are properly adjusted.

Step 6: File Final Taxes

The final step is filing the deceased’s taxes, including any outstanding returns. This is often best handled by a professional, such as a CPA, to ensure compliance and accuracy.

While these tasks may seem overwhelming, prayer and preparation can guide you through. Remember, you are not alone in this journey. Lean on God’s wisdom and the support of trusted professionals to navigate this season with grace and confidence.

On Today’s Program, Rob Answers Listener Questions:
  • My able-bodied older sister has been relying on our family for financial support for the past 8 years, even though the work she chooses doesn't provide enough income. Should we continue supporting her, or is that not helping her in the long run?
  • My wife and I will inherit an IRA from my mother-in-law. The IRA and a brokerage account contain over $300,000 in cash. However, the money market account yield has dropped from 5.3% to 4.5%. Where should we invest this cash with the stock market looking richly valued?
  • I'm 70 and retired, and I need to get a new car. I currently owe $27,000 on my home. Should I pay off the remaining mortgage, which would increase my monthly payment, or should I get a car that would cost around $20,000, which would lower my monthly payment? I don't know where to get the money to do either.
  • My 91-year-old dad has a $3,500-$4,000 monthly shortfall in his long-term care expenses and is down to his last $25,000. I'm considering a reverse mortgage for him, as this could allow him to stay in his home for another 2.5 years. What are your thoughts on the different types of reverse mortgages and whether this could be a good option for his situation?
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Remember, you can call in to ask your questions most days at (800) 525-7000. Faith & Finance is also available on the Moody Radio Network and American Family Radio. Visit our website at FaithFi.com where you can join the FaithFi Community and give as we expand our outreach.

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What's most important to you when it comes to choosing your financial advisor? Someone who's aligned with your biblical values. How about someone who will take the time to explain your options? Certified Kingdom Advisors are professionals who meet high standards in competence and integrity, and have been trained to offer biblical financial advice.

To find a Certified Kingdom Advisor in your area, visit faithfi.com and click Find a CKA. When a loved one goes home to be with the Lord, it's often a time of great confusion as well as grief. What needs to be done and when?

I am Rob West. Simply making funeral arrangements can be difficult enough, but then there's an estate to settle and many find themselves unprepared. Today, I'll give you the six financial steps to take when a loved one dies. Then it's on to your calls at 800-525-7000.

That's 800-525-7000. This is Faith and Finance, biblical wisdom for your financial journey. Well, before we get to the financial steps you should take when a spouse or other loved one passes, there's a very important spiritual step to take, prayer. You should invite God to be a part of all your financial affairs and decisions, but especially now as you begin the process of settling your loved one's estate. It's enough simply to pray for wisdom in this challenging time. James 1-5 teaches, If any of you lacks wisdom, let him ask God, who gives generously to all without reproach, and it will be given him. Romans 8-26 reveals just how much the Lord wants to guide and strengthen you. It reads, The Spirit helps us in our weakness, for we do not know what to pray for as we ought, but the Spirit himself intercedes for us with groanings too deep for words. After a time of prayer, you'll feel more confident and ready to take on the challenge of settling your loved one's estate.

So here are the six steps you'll need to take. First, get a copy of the death certificate. This is the legal record of your loved one's death. It's usually prepared by a medical examiner and provided to you by the funeral home you're using for the burial. You may also obtain a copy at your county vital records office. It may take a few weeks to obtain the death certificate.

If you haven't received one in that time, contact the funeral home or records office to check on it. You really need a copy of the death certificate to begin the other steps in this process, and it's especially important if you are the executor of the estate because most of the actions you'll take require a copy of the death certificate. Okay, now that you have that document, you can take it and a copy of the will down to your county probate office and file a petition to begin the probate process. If you're the executor, you can then begin carrying out the deceased's last wishes as specified in the will. Ah, but what if there is no will?

Well, then things get a bit more complicated. You'll still take the death certificate to probate court and petition the court to begin the probate process. You can also request to be named administrator of the estate, but there's no guarantee the court will honor that request. The probate court will then decide, according to state law, how the deceased's estate will be divided up among the heirs. Things may get complicated at that point, and you may want to have an estate attorney help you through the process of distributing the assets.

We recommend getting someone with the CKA designation, and you can go to faithfi.com and just click find a CKA. Now in step three, you begin notifying the deceased's financial institutions and advisors, if any. If your loved one had a financial advisor, that person can be a huge help in determining what assets are involved. You can also check the current balances when you notify financial institutions of your loved one's death.

Here's where you may discover that some assets can pass directly to beneficiaries without going through probate. Check with administrators of retirement and standard brokerage accounts for transfer on death or TOD instructions. For banks, check for payable on death or POD instructions. You'll probably have to provide a copy of the death certificate to get the funds released. At this point, you should also notify the three credit reporting agencies, Equifax, TransUnion, and Experian of your loved one's passing. Again, you'll need the death certificate.

They will close those accounts, get copies of the reports, and check to make sure everything is in order and that there are no fraudulent accounts or transactions. Step four is to contact the deceased's life insurance company or companies. You'll need the death certificate here to also cancel other types of insurance, such as auto or disability that are no longer needed. Step five is to notify any affected government agencies.

Interestingly, the funeral director often notifies Social Security of a deceased's death. Check to confirm that and also notify Medicare and the VA if necessary. Finally, step six is getting started on the deceased's final taxes.

Here is where you really should bring in a professional such as a CPA to help with this. I know that's a lot, but you can get through it one step at a time. And remember to pray for guidance and know that you are never alone. All right, your calls are next, 800-525-7000.

We'll be right back. You can find a local CKA professional in your area by going to faithbuy.com and clicking Find a CKA. Have you ever wondered where your money goes when you deposit it in a bank? Christian Community Credit Union believes in helping advance God's kingdom through everyday financial transactions. For over 67 years, they have provided values-aligned banking solutions to thousands of Christians and ministries. Consider Christian Community Credit Union as your banking institution by visiting joinchristiancommunity.com. Membership eligibility required. Each account is insured up to $250,000.

This institution is not federally insured. Great to have you with us today on Faith and Finance. I'm Rob West. We're taking your calls and questions. That number to call 800-525-7000. You can call right now.

Let's see, we're going to go to Chicago. Fenny, thanks for calling. How can I help?

Hi, this is Fenny. My two sisters and my parents been helping my older sister who able-bodied. In the past, they made a lot of money, but right now for the past eight years, they only want to work in insurance business, which until today still not putting food on the table and doesn't pay rent. And they expect us, all the family, the two sisters and the parents who are aging to support them. So the question is whether we should keep doing that because in my opinion, it doesn't help them.

Yeah, I would agree with you. The only thing that complicates matters is just that she has small children, but I think you're right in that you're not doing her any favors by continuing to fund her lifestyle with her unwillingness to seek out work in whatever industry she can find work. To put food on the table, keep a roof over their head, Gauss in the car, and you know, get to and from work. So I think yeah, it involves a hard conversation, one in love, but one that's very clear and deliberate to say, listen, we've been happy to help you.

I understand you have a very specific industry you want to work in. Unfortunately, we're not going to be able to continue to do that. And so I need to let you know that as of this date, you know, we're done and I would probably pull together those that have been supporting the sister here together to talk about whether you're all on the same page because one may want to continue to help and others may not.

Hopefully you guys are all on the same page and you can come with a unified front. But I think the idea here is that by giving her very clear communication and a date specific that the support is going to end, it's going to really force her to say, okay, you know, and I've got to make other arrangements here and that's really the right thing to do. I mean, it's one thing for you all to step in on a temporary basis to be able to provide some help, especially if she was out there, you know, really pounding the pavement and doing her part and trying to find some income.

But given that it sounds like just based on your description, she's unwilling to kind of be open to whatever the Lord may provide, then you're essentially fueling this behavior that is not right and it's not what she should be doing in terms of, you know, being a steward of God's resources and working hard and diligently as the Bible discusses. So I would agree with you. I think it's time to cut it off.

I think the key is just clear communication and a very deliberate timeline. Okay. Thank you very much, Rob. All right. You're welcome, Phinney. Thank you. God bless you. Naples, Florida. Hi, Todd.

Go ahead. Hi, my wife and I are that will be the inheritors of a fairly decent IRA from my mother-in-law, who's a widower. She, when the death benefit came out of a control account, we put a lot of cash into a brokerage account. And then we also, she has sold some stocks recently. So there's a lot of cash sitting in an IRA and in a brokerage account. We're wondering what to do with it. It was in a minute money market because it was paying 5.3% as recently as May or June.

Now it's down to 4.5. Where can you put some money now? Because it doesn't seem like the stock market has a lot of bargains out there. She's pretty well diversified through bonds and things like that already. So we're trying to figure out what to do with this 300 plus thousand in cash.

Well, I would be thinking about investing. I mean, I understand what you're saying about the rich valuations in the stock market. And yet there really isn't a good long-term option to offset inflation and grow the wealth apart from you having a properly diversified stock and bond portfolio. And I think, you know, the case to be made for hiring an advisor makes a lot of sense right now because there are going to be pockets of value even in a richly valued market. And it could be through alternative investments. It could be in certain sectors, you know, but you want to take a long-term approach with it and say, okay, you know, I'm now the steward of this money. And you know, even if you're in, I don't think you said your age, but even if you're in your 60s, you know, you need to be taking a, you know, a long-term perspective. I mean, we're we want the money the last three decades or more. And if you're younger than that even longer, so what I would do is go to a certified Kingdom advisor there in Naples.

There's some great ones on the website Faithfi.com. Click find a professional. I'd interview two or three and I'd talk about the fact that listen, it's all in cash and I realize the market is pretty highly valued right now. And let's talk about where we go from here, but I wouldn't try to stay on the sideline just because the market is priced high right now.

I think now's the time once you decide. Yes, we're going to get it invested and you've got a 10-year runway before this has to be exhausted. You'd have to pull it all out within 10 years and pay the tax on it. But even then if you don't need the money, you're going to want to turn around and get it back in the market.

Sure. We and again, she's well positioned in with a lot, you know, she has a ton of mutual funds and stuff like that. So we were just generating some income with this through interest and we were using it for some things we need. Second question was my wife and I, she's retired.

I'm a teacher. We do give to charitable donations through Christian organizations. Can't meet the deduction threshold anymore. So we're not getting any tax break. Is it really unfaithful to not give for two or three years and then just package it like HR blocks suggest when we when I do my taxes? Yeah, I wouldn't be supportive of that.

I'm not saying that it's unbiblical. I wouldn't go that far, but I would say that we are to be generous and part of that generosity is to get that money into circulation in the kingdom, not necessarily for the tax benefit, although I'm all in favor of taking full advantage of any tax benefit you have due and so I think that's a good thing. And bunching I think is a great strategy, but I like it where and you've got to have the resources to do this. You've got to have the surplus liquid assets, but I like bunching where you'd put it in, let's say a donor advised fund three years worth on the front end, get the full deduction in one year, get above the standard deduction, get the full tax benefit and then you could give it out over, you know, a three-year period monthly like you normally would out of the donor advised fund, but if it requires you to, you know, stop giving entirely for a couple of years, I'd be hesitant to do that just for the tax break.

Sure. What's a donor advised fund? Yeah, so think of it like a charitable checking account. So I would go to ncfgiving.com National Christian Foundation, ncfgiving, they call it a giving fund. You can open one in five minutes on their website and essentially the way it works with a donor advised fund.

It's a powerful giving vehicle. You are giving the money away when you put into it, you put the money in, you're giving it to the donor advised fund sponsor, in this case, the National Christian Foundation, but then you're the money sits there and you can put it in, you know, the the money market account or you can even invest it inside the donor advised fund. Once it hits the donor advised fund as far as the IRS is concerned, you've given it away so you can take the full deduction, but then you would be able to log in and essentially make grant recommendations that they'll follow as to where you want the money to go. And as long as it's going to a 501c3 ministry, then they'll just cut the check and either send it in your name or send it anonymously you choose. So it's a great way to facilitate a bunching strategy, get it all in one year, but have it in there earning interest even invested and then you just give it away at whatever pace you want to whatever ministry you want.

Make sense? Yes, great idea. Thank you. Okay, good.

Yeah, the website to do that in CF giving.com and you'll just click on open giving fund and you can have that done in no time. Thanks for your call Todd. All right, folks. We're just getting started here. Let me mention we've got some lines open today.

We're ready to take your calls. Whatever you're thinking about in your financial life today. We'd like to help you look at those questions and decisions you're making through the lens of scripture, ultimately making God your ultimate treasure, but helping you make those practical daily decisions in light of God's Word. So whether it's your spending plan that's out of control or debt you're trying to repay or some giving you're wanting to do and you want to do it wisely or you know, maybe it's saving or investing for the future.

Whatever it is call right now 800-525-7000. This is Faith and Finance and we'll be right back. Faith Fi is grateful for support from One Ascent. One Ascent believes that your values inspire why you invest and how they can inspire how you invest. One Ascent's goal is to provide solutions designed for every need and invest in businesses that bless the people and places God has made. They want to help investors do well by doing good to explore a new way of investing that aligns with your values. More information on how to invest in one asset and investing that aligns with your values. More information is available at oneascent.com and by clicking analyze my investments. As the leading advocate for the Christian financial industry, Kingdom Advisors serves the public by promoting the integration of a biblical worldview across every aspect of the financial services industry. And we serve a growing network of thousands of Christian financial professionals, equipping and empowering them to carry biblical financial wisdom to clients, peers, and community. For more information, visit kingdomadvisors.com.

That's kingdomadvisors.com. Glad to have you with us today on Faith and Finance for taking your calls and questions today. Here in this segment, all the lines full. So let's head right back to the phones. Let's go to Columbus.

Hi Sandy, how can we help? I have, to me, it seems convoluted, but I think it's quite simple, trying to need a new car. I'm 70, I'm retired, I have a good monthly income, but I'm trying to figure out if I should go ahead and pay off my home, which I owe $27,000 on, or I should, which of course would be a higher payment, or get a car, which I need, which could be maybe around $20,000, and lower payments, but I'd rather not have two payments, and I'm unsure about where I pull that money from. Yeah, so I understand you've got the $27,000 mortgage, 70 and retired, and the car that you need, you think you need to spend about, or you're looking to spend about $20,000. What are you doing right now for transportation? I have a car, but it's a 2012, and it has 160,000 miles on it. Okay, does it need extensive repairs, or is it in fairly good working order?

It doesn't need extensive repairs, no. Okay, alright. I think it's more about my feeling of security.

Yeah, and I can certainly understand that. You know, the last thing you want to do is be stuck somewhere, because the car, you know, doesn't work. I mean, you can help with that by, you know, getting a membership to, you know, some service that will come out and take care of that, but obviously, you know, as a 70-year-old female, I can understand why you would want to have a worthwhile and trustworthy car. Let's talk about the assets that you have, because I know that would be the next question is, where do we pull from to either pay off the house or, you know, buy the car? So, what do you have available? I retired from public service, so I have deferred comp, and I have about 190 in there. I have, in my credit union, I have probably around, I think it's around 20, and eight of that is in the money market. So, other than that, I have some money in my checking account, which I really hate to admit, but I had loaned a business.

I had been in some money, and when it came back to me, I could have put it back in deferred comp, so it's been sitting in my account, and it's about $20,000 as well, checking account. Okay, so you've got about $50,000 all in between the $8,000 and the $220,000, is that right? Yes.

Okay. So, what do you spend on a monthly, typical month? In general? Yeah, just on the average month. What do you think your total expense is, roughly? I'm probably, I have some, well, about $3,000. Okay, so if we wanted six months' worth of expenses, that'd be $18,000. You know, let's call it $20,000. So, if you just kept the $20,000 in the credit union, and you pulled the $8,000 and the $20,000 that's in checking, and paid off the house, which that would do it, all of a sudden at that point, you'd still have more than six months' worth of expenses in liquid reserves, and now you'd free up the monthly payment that you were sending for the house, at least the, not the taxes and the insurance, but at least the principal and interest. Do you know how much that is every month that you'd now be saving? I couldn't tell you that right now.

I didn't think about looking that up. Yeah, that's okay. So, that would be one thing, is if you're really set on, I only want to have one loan, then I would be comfortable with you paying off the house, still having six months' worth of expenses in the bank, plus your income stream, not touching your deferred comp, so that can continue to grow, and then taking that monthly payment that you were sending to the house, principal and interest, and now using that, or probably, hopefully a lot less than that, but some of that for the new car payment, not the new car, but new to you, and then whatever's left that you're not using for the car payment, you're now building back up your emergency savings. Does that make sense?

Yes, it does. Okay, so that would be one option. The other option is you leave the home the way it is, and you just buy the car outright with the $20,000 that's in your checking account, that's from that business, and now we're not adding a new payment, and then you just focus on paying off the house over time, and now you've still got $28,000 in savings, which is even more than six months, because that would give you, you know, if you're spending $3,000 a month, that would give you nine months' worth of expenses.

So I think you could go either way, buy the car outright, and still have nine months expenses, or pay off the house and still have six months expenses, and then just save the difference between the new car payment and the mortgage payment that you're now no longer paying. Yeah, thank you. You are welcome.

Simplified. Well, I'm glad, and I appreciate your call today. All the best to you, Sandy. Thanks for being on the program. Todd's been waiting patiently in Illinois.

Go ahead, sir. Quick question for you. My dad is 91 years old. He has a pension, long-term care insurance. My mom had long-term care insurance.

We almost use all of that. She was four years at home with dementia, passed away. So my dad's been on his long-term care policy for just under two years. So we have about a $3,500 to $4,000 a month shortfall, and he's down to his last $25,000, and was wondering what your thoughts were about a reverse mortgage, which would buy him another two and a half years of being in his home at 91. If there's one type of reverse mortgage that you have any thoughts about, just trying to get some just general information so that I can make a good, informed decision for him. Yeah, I think you're thinking in the right direction here, Todd, because as we look at all the assets that we have, we certainly have to consider, as one of those that should be just a part of the financial planning conversation, home equity.

Now, a lot of folks love the idea, and I do as well, of getting to a place where we own our home free and clear and staying that way, and we live off of the assets we've accumulated plus social security. But if you're in this situation where he's literally got a shortfall and his largest remaining asset is his home, it absolutely can be converted to a stream of income, either through a home equity loan kind of thing where it's available to him, a line of credit, or just a monthly paycheck. And the great thing is that the home equity conversion mortgages, the reverse mortgages of today, are far better than the ones that were heavily scrutinized years ago, and for good reason, because it's not collateralized in the sense that it's only collateralized by the home, and it's non-recourse, so he's not on the hook for it personally. How much equity does he have in the home? He owns it free and clear. It's worth about $215.

Yeah, so this could be a great option for him. So let's do this. I've got an unfortunate amount of time here. The place to go, and then I'd like for you to stay on the line. Our team will get your information. I'll get somebody in touch with you, is movement.com slash faith. That's movement.com slash faith. And then if you stay on the line, Todd, our team will get your information and we'll get somebody to reach out to you who can run all the illustrations and answer all of your questions.

But this could be just what your dad is looking for in this season of life. God bless you, my friend. Hang on the line. That's going to do it for us today, folks. You can support FaithFi at faithfi.com. Just click Give and we'll see you tomorrow. God bless you. Faith and Finance is provided by FaithFi and listeners like you.
Whisper: medium.en / 2025-01-14 04:18:27 / 2025-01-14 04:29:12 / 11

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