We all know friends or loved ones who don’t have close family members in their lives. My sister passed recently. It was absolutely unexpected but since we had prepared for her passing, it was much less painful as there were no decisions to be made.
You should have someone on your bank account who can write checks and be responsible for your funds should you become incapacitated. After her stroke, my sister could no longer write numbers so she needed someone to do that for her. That person becomes the co-owner of the account. On the owner’s passing, the co-owner becomes the owner of the account, thus keeping the state from attaching the funds.
You must have an advanced directive to state what happens to you if you cannot speak for yourself. She had a massive brain bleed and was unresponsive, not able to speak for herself. She had a do not resuscitate order so her wishes were followed. It was just a matter of telling the doctors it was time to start the end of life procedure.
Power of attorney is also a great tool, goes hand in hand with the advanced directive. Financial steps can be taken on behalf of the individual to protect that person and their assets.
A will is an requirement for everyone, whether you believe you have anything of value or not. Most people have some sort of retirement savings. Traditional IRA’s and 401K’s have designated beneficiaries within the form. Monies bequeathed in that form do not have to be cashed immediately but have a 10-year cash-out or rollover requirement. For a spouse, there is no cash-out requirement. By the same token, if you wish for someone to not receive any of your estate, that can be stated in a will as well. Wills with more than $50,000 in value must be probated through the state of Indiana. Even small estates can take up to 6 months to be approved by the state. This is not a quick process.
My sister wanted to be an organ donor. For her that consisted of skin, tissue, and bones. That process must be completed in the first 24 hours after passing.
Making your funeral arrangements in advance also takes the pressure off the survivors. My sister had already made the decision and paid for her funeral: cremation, no service, ashes to be taken to Florida and spread there. Takes all the guess-work out of the decisions and allows the family to grieve.
There are many things to be done after someone passes, preparing a home for sale, vacating an apartment and disposing of belongings, filing for life insurance benefits, the list goes on.
A final tax return must be prepared for everyone. If there is a refund, that money can go directly to the person’s bank account so plan on keeping their account open for as much as 18 months to 2 years. There is also an additional form in the tax return that must be completed stating you are authorized to handle the funds on behalf of the person’s estate.
I am available to answer any questions should you find yourself in this situation.