November – Trendline Financial Monthly
November 24, 2009
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Life Event – Losing a Loved One
November 8, 2009
Life Events – Losing a Loved One
Few times in our lives are more devastating than the death of a loved one. As you feel your own life pausing as you grieve your loss, these pointers will help take care of your finances and those of your loved one.
The death of anyone especially close to us creates an interruption to the flow of our everyday lives. It takes time to recapture our sense of equilibrium, and our awareness of everyday tasks and responsibilities. How much time a person needs to regain personal and financial stability is as unique to an individual as their fingerprint.
Prior to death, the deceased may have shared information about their final wishes. They may have told you where their will is kept. You may have been provided passwords to retrieve financial information from their computer. All of these details are involved in settling the estate. Depending on whom has been appointed as executor in the deceased person’s will, you may have the task of finalizing their financial affairs. Depending on the complexity of the estate, you may need to seek the assistance of an attorney.
Unless there is a living trust or all assets are held in joint tenancy, the estate will have to go through the probate process. A probate court hearing will determine final debts of the deceased. Based on the will, the legal title of property will also be determined and legally passed to the heirs. If the decedent has a will, the authenticity of the will is determined. If there is no will, then the property of your loved one will be distributed to the heirs according to state laws.
There are several financial details that need to be completed following a person’s death. To be ready to follow through on the paperwork required, obtain several notarized copies of the death certificate. Here is a task list:
- Contact the Social Security Administration (SSA) to inquire about any benefits the deceased may have been receiving or benefits that may be available to survivors of the deceased. Social Security Benefits cease with death, and any checks payable to the decedent that are received after their passing should be returned to the SSA. A one-time payment of $255 is made to the spouse, living beneficiary, or a child of the deceased. This payment is to help pay for funeral expenses. Dependent children and parents, or the spouse, may be eligible for survivorship benefits. To report a death to Social Security, call 1-800-772-1213. See the SSA articleHow Social Security Can Help You When A Family Member Dies.
- Check with the deceased person’s insurance carriers about the procedures for claiming life insurance benefits and removing the deceased one’s name from automobile, homeowner’s, and other policies.
- Did the decedent share ownership of a car? The local Division of Motor Vehicles will require forms to be completed and a copy of the death certificate to remove the deceased person’s name from the title and registration.
- Contact the deceased’s employer. Frequently, individuals carry a life insurance policy at their place of work and there may be benefits available.
- Submit any medical expenses incurred at or prior to the death as claims to the appropriate insurance provider. Also include any outstanding medical bills that were paid.
- Notify banks and creditors of the death. If the accounts were solely the possession of the deceased, they will be closed. If you shared these accounts, inquire how each institution prefers to remove the deceased’s name from the account to give you sole ownership and responsibility. Frequently, financial institutions will require a letter stating your wishes with a notarized copy of the death certificate to verify the death of the account holder.
- If the decedent ever served in the military, benefits may be available for the spouse and minor children. Contact the nearest Department of Veterans Affairs or call 800-827-1000 and ask for assistance.
- Resolve any taxes that the decedent may owe. This may be a time that you want to consult a tax expert and let them walk you through the details that apply to your unique situation.
This list is a place to begin. As you begin to take care of these affairs, others will arise. As difficult as it may be to accept, the outside world will continue to make demands on grieving family members despite your inability to focus. This is not a time to neglect your financial responsibilities. Once your days become more normal again, you will be greatly relieved if you’ve paid attention to the financial details of your own life, too. The following list offers suggestions for how you can manage your life and your financial responsibilities during this difficult time:
- Take care of yourself. The fundamental elements of everyday life go out the window when we lose a loved one. Attempt to maintain some sort of routine by eating regular meals, sleeping, and attending to your basic hygiene needs. Continue taking any prescribed medications. If you find yourself unable to sleep, or if you are experiencing other severe adjustment difficulties, visit your family physician just to be safe.
- Find a support group. During this time of sorrow, you may not want to cope with new people or situations, but there is a great deal to be gained from a support group. Whether you find a group online, in the yellow pages, through your employer, from a local hospital or in your community, there is tremendous comfort in talking and sharing experiences with other people who understand.
- Take a financial inventory of bills and other financial obligations. If you have never approached your finances as a line item on a checklist, this is a good time for that kind of attention to detail. Do you know when the next insurance premium is due? Is there a membership or registration that will lapse if you miss a payment?
- Create a calendar to keep track of what needs to be done, as well as note key events that happen during this time period. A calendar can be the ideal solution for many people coping during stressful times. During the day when the simplest task feels overwhelming, a calendar can make tasks more manageable. Recording key events will also help you remember those details in coming months.
- Avoid big money decisions. The world is full of people who have suggestions about how to spend your money, especially if they believe you’ve just received an inheritance check or a life insurance check. If you have important decisions to make about money, consider trusting a professional financial planner. Protect your money in a low-risk account like a money market account or savings account, or into savings bonds until you are better prepared to make plans for your future. Postpone any major decisions regarding money or investments for three to six months, at least.
- Ask for help. In your circle of close friends, family, and even within your community, there is someone who would be more than willing to help you see that your banking is taken care of and your bills are paid. Even at this time when you feel alone, there is someone at a local church or in a grief and loss support group who will come to your aid. If you have the financial resources, you could even hire an accountant to help you through this trying time and remove these tasks from your plate.
If you are overwhelmed by the details of managing finances right now, don’t stuff the bills into a drawer or let them pile up in the corner. Find someone who will help you find your way through the next few months until you are better able to cope. Your time to grieve is necessary for your health and for you.
Written by Care One
What people really need is a person who they can call when they have a question or a new problem due to a change in their lives, maybe help with setting up a budget, getting a second opinion about some guy trying to sell them a financial product, where to find an accountant or attorney, basically someone who is always there to help when needed.
For this reason, Trendline has started a program whereby you can call me as many times as you need to, 24/7 , to ask a financial question. Some of my associates have said I am crazy, that people will be calling every day. Maybe, and I realize some people may call every day just because they can. But I expect that most people truly want someone there when needed, some may never call but are still comforted by knowing someone is there just in case.
Read My Financial Planner 24/7 Program annoucement
Contact:
Peter B. Owen
Trendline Financial Solutions
1675 Cedar Beach Road, Southold, NY 11971
223 Parker Avenue, West Hempstead, NY 11552
21 West Mill Drive, Great Neck, NY 11021
Phone: (516)317-2860
Email: info@trendlinefinancialsolutions————–
or peter@trendlinefinancialsolutions.com
Website : trendlinefinancialsolutions.com
Trendline Financial Solutions is a Financial Planner Firm offering Financial Planning and Investment Management with offices in Southold, Great Neck and West Hempstead, NY, convenient to Garden City, Rockville Centre
Life Event – Planning for a Divorce
November 8, 2009
Divorce Considerations
A divorce considerations guide to financial and legal strategies for women.
If you are thinking about ending your marriage, or are currently in the divorce process, the most important thing you need to do is accept responsibility for the outcome of your divorce. Because a woman’s standard of living generally drops at least 30% after a divorce, the decisions that you make now can have a considerable effect on your future.
It is wise to establish a plan of action instead of going into your divorce blindly. Do research, hire your attorney early, contact a financial planner, Keep track of items on paper.
If it is inevitable that your marriage will end, utilize the following divorce considerations to protect yourself. Most importantly, if your spouse has initiated proceedings, do not sign anything until you are represented and informed by a lawyer. Also, do not use the same lawyer that is representing your spouse. Retain your own attorney to level the playing field and have fair representation.
Divorce Considerations on Money: Consider consulting a certified financial planner that is skilled in divorce proceedings. They can help prepare you financially before your start your divorce, and point out areas of your settlement that will have repercussions in the future. Keep the following suggestions in mind as you think about divorce:
- Do not make large purchases that will add to community debt. Try to keep all assets liquid.
- Start to stash back money now for emergencies before and after your divorce. Traveler’s check are a fairly safe way to do this.
- Put a freeze on joint credit card accounts.
- Keep working to secure your newly single future.
- If you have your paycheck automatically deposited into a joint account, set up an individual account, and have the deposits made to it.
- Keep all individual assets separate. These include inheritances, workers compensation, personal injury awards, items that you brought into the marriage, and gifts given to you individually.
- Have any necessary mechanical repairs done to your automobile to insure that you have reliable transportation after the divorce.
Divorce Considerations on Support:
- You are eligible for interim maintenance and child support during separation and divorce proceeding.
- Child support is not taxable.
- Your ex’s bankruptcy won’t effect the child support order.
- Spousal support is taxable.
Divorce Considerations on Insurance: Before you divorce, get any medical or dental check ups done while you are still covered on your spouses insurance.
- Your divorce papers can stipulate that your spouse carry insurance on the children.
- You can request that your spouse name you or your children as beneficiaries on his life insurance policy (you may not get it, but it’s worth a try).
- You have the opportunity to continue your coverage from your ex’s health insurance plan after the divorce by electing COBRA coverage. You will have to pay 104% of the policy cost, but this can provide temporary (up to 36 months) coverage for you. You need to convert the policy within 60 days of your divorce or legal separation.
Divorce Considerations on Retirement and Social Security:
- Pensions are joint assets, and can be divided in a divorce settlement. Your lawyer will need to prepare a Qualified Domestic Relations Order (QDRO) before your divorce is finalized.
- If your marriage lasted for at least 10 years, you are eligible to collect on your ex’s spousal portion of their social security pension, provided that you don’t qualify to collect based on your own earning. If you qualify, you can collect once your ex-husband turns 62 (whether or not he retires), and the divorce has been finalized for over two years.
- Unmarried children under 18 are entitled to survivor benefits if your ex-husband dies.
- If you were married for at least 10 years, you qualify for the same survivor benefits as a widow.
Divorce Considerations on Property and Assets: Consider the tax implications of any property received in the settlement. Some property and assets are subject to a capital gains tax of up to 40% when sold. Consult a certified financial planner on the division of assets and holdings.
- The marital home is exempt from this tax, but be realistic about whether you can really afford to live there.
- A cash settlement is preferable to installment payments as part of a divorce settlement. Ex-husbands don’t always live up to payment agreements. Get the money while you have the chance.
Divorce Considerations on Taxes and Liens:
- Contact federal and state tax departments to see if there is any outstanding taxes owed. Remember that you will be held just as liable as your ex.
- Check at the county court house to see if there are any liens placed on any of your property. Think twice before receiving such property in a settlement, unless your ex can pay off the lien before the divorce is finalized.
Divorce Considerations on Documents and Records: It is important to have copies of all records and accounts, since they have a way of disappearing once proceedings have begun. With copies, you have all the relevant information that you will need in the future.
| Savings account Checking Account Certificates of Deposit Mutual Funds Home Equity Loans Brokerage Accounts Credit Card Accounts Mortgage Information |
Life insurance Disability insurance Homeowner’s Insurance Medical Insurance Umbrella Policy Automobile Insurance Property Titles Vehicle Titles |
Tax returns – last 5 years 6 months of pay stubs 401 K plan IRA Keogh plan Wills and Trusts Safe Deposit Box Purchase Price of Home |
While divorce is a very emotional time, you need to approach it like a business deal and take control of the proceedings. Don’t cave in because you feel overwhelmed.
Written By Divorce.com, August 2008
What people really need is a person who they can call when they have a question or a new problem due to a change in their lives, maybe help with setting up a budget, getting a second opinion about some guy trying to sell them a financial product, where to find an accountant or attorney, basically someone who is always there to help when needed.
For this reason, Trendline has started a program whereby you can call me as many times as you need to, 24/7 , to ask a financial question. Some of my associates have said I am crazy, that people will be calling every day. Maybe, and I realize some people may call every day just because they can. But I expect that most people truly want someone there when needed, some may never call but are still comforted by knowing someone is there just in case.
Read My Financial Planner 24/7 Program annoucement
Contact:
Peter B. Owen
Trendline Financial Solutions
1675 Cedar Beach Road, Southold, NY 11971
223 Parker Avenue, West Hempstead, NY 11552
21 West Mill Drive, Great Neck, NY 11021
Phone: (516)317-2860
Email: info@trendlinefinancialsolutions————–
or peter@trendlinefinancialsolutions.com
Website : trendlinefinancialsolutions.com
Trendline Financial Solutions is a Financial Planner Firm offering Financial Planning and Investment Management with offices in Southold, Great Neck and West Hempstead, NY, convenient to Garden City, Rockville Centre