Financial Steps After Losing a Loved One

If you’re reading this, you’re likely going through one of the hardest experiences a person can face. We’re sorry you’re here. And we want you to know something important before we go any further: there is no rush. The financial tasks ahead of you are real, but nearly all of them can wait days, weeks, or even months. Your grief comes first. The paperwork will still be there when you’re ready.

This guide exists so that when you do feel ready to take a step, you’ll know which step to take next. You don’t need to do everything at once. You don’t need to do everything yourself. You just need a place to start.

The First Few Days: Breathe Before You Act

In the immediate aftermath of losing someone, well-meaning people may tell you to “get your affairs in order” or “handle the finances right away.” Here is the truth: very few financial tasks are truly urgent in the first week. The most important thing you can do right now is take care of yourself and the people around you.

That said, there are a small number of things worth addressing early, not because they’re urgent in a life-or-death sense, but because they’re easier to handle sooner rather than later.

Secure the home and physical belongings

If your loved one lived alone, make sure the home is locked and secure. Check that utilities remain on (especially heat or cooling, depending on the season). If there are pets, arrange for their care. These small practical steps can prevent complications later.

Avoid making major financial decisions

This is worth stating plainly: do not make any large financial decisions in the first 30 days if you can avoid it. Do not sell the house. Do not cash out investments. Do not lend money to anyone who asks. Grief affects judgment in ways that are invisible to us while we’re in it. Give yourself time.

Ordering Death Certificates

One of the first practical steps you’ll need to take is ordering certified copies of the death certificate. You will need these for nearly every financial institution, insurance company, and government agency you contact. The funeral home typically handles this process and can order them on your behalf.

How many do you need? More than you think. A good starting number is 10 to 15 certified copies. Each bank, insurance company, retirement account, and government agency will want their own original certified copy. Some will return them; many will not. Certified copies typically cost $10 to $25 each depending on your state, according to the National Conference of State Legislatures. The total cost usually runs $100 to $375.

If you run out, you can order additional copies from the vital records office in the county or state where the death occurred, though this can take several weeks.

Notifying Key Institutions

When you feel ready, you’ll want to begin notifying the important institutions. There is no single deadline for most of these. Work through the list at your own pace. A phone call is usually the first step; most institutions will then tell you exactly what documentation to send.

Financial institutions to notify

• Banks and credit unions. Call each one to report the death. Joint accounts typically remain accessible to the surviving account holder. Individual accounts may be frozen until the estate is settled. Ask about any automatic payments linked to the accounts so bills don’t go unpaid.
• Credit card companies. Notify each issuer. If you are an authorized user (not a joint account holder), you are generally not responsible for the balance. If you are a joint account holder, the debt is typically your responsibility. The rules vary by state, so ask the issuer to explain your specific situation.
• Investment and brokerage accounts. Contact each firm. They will walk you through the transfer process, which depends on whether the account had a named beneficiary, was jointly held, or needs to go through probate.
• Mortgage company or landlord. If your loved one had a mortgage, contact the servicer. Federal law (the Garn-St. Germain Act) generally prevents lenders from calling the full loan due when a home transfers to a spouse or family member after death. You typically have options. If they rented, contact the landlord about the lease.

Government agencies to notify

• Social Security Administration (SSA). Call 1-800-772-1213. The funeral home may report the death to SSA on your behalf, but it’s worth confirming. If the deceased was receiving Social Security benefits, those payments must stop. Any benefits received after the date of death may need to be returned. We’ll cover survivor benefits in a later section.
• Medicare/Medicaid. If the deceased was enrolled, notify the Centers for Medicare and Medicaid Services.
• Department of Motor Vehicles. Cancel the driver’s license to help prevent identity theft.
• Voter registration office. Cancel the registration.
• Post office. Consider forwarding mail to your address so you can catch any bills, statements, or correspondence you might otherwise miss.

Other notifications

• Employer or former employer. Check for any final paycheck, unused vacation payout, pension benefits, or employer-sponsored life insurance.
• Insurance companies. Auto, home, health. Cancel or transfer policies as appropriate.
• Subscription services. Cancel recurring charges: streaming services, gym memberships, magazine subscriptions, app subscriptions, cloud storage.

Handling Ongoing Bills and Expenses

One of the most stressful parts of this process is figuring out what bills are due and making sure nothing falls through the cracks. Missed mortgage payments, lapsed insurance policies, or disconnected utilities can create problems that are much harder to fix later.

Start by reviewing bank and credit card statements for the last three months. Look for recurring charges and automatic payments. Make a list of every regular expense. If you have access to the deceased person’s email, search for receipts and payment confirmations.

For bills you can’t pay right now: call the company and explain the situation. Most creditors, utility companies, and mortgage servicers have bereavement policies or hardship programs. Many will pause collections, waive late fees, or offer temporary forbearance. You won’t know until you ask, and most companies are more understanding than you might expect.

Filing Life Insurance Claims

If your loved one had a life insurance policy, filing the claim is one of the financial steps that can meaningfully help your situation. Life insurance proceeds are generally not subject to federal income tax, which is one small piece of good news during a difficult time.

How to file

1. Locate the policy. Check the deceased’s files, safe deposit box, email, and mail. If you know the insurer but can’t find the policy, call the company directly. They can look it up. If you’re not sure whether a policy existed, you can search the National Association of Insurance Commissioners (NAIC) Life Insurance Policy Locator at no cost.
2. Contact the insurance company. Call the number on the policy or visit their website. They will send you a claim form (sometimes called a “claimant’s statement”).
3. Submit the claim form and a certified death certificate. Most companies require an original certified copy.
4. Choose a payout option. You’ll typically have the choice of a lump sum, installments, or leaving the money in an interest-bearing account with the insurer. For most people, the lump sum is the simplest option.

Timeline

Insurance companies in most states are required to pay claims within 30 to 60 days of receiving complete documentation. According to the American Council of Life Insurers, the industry paid approximately $906 billion in life insurance benefits and annuity payments in 2023. These claims do get paid. If your claim is delayed beyond 60 days, contact your state’s Department of Insurance.

Common reasons claims are delayed

• Missing or incomplete paperwork
• The death occurred within the policy’s contestability period (typically the first two years)
• The cause of death requires additional investigation
• Multiple beneficiaries with conflicting claims

If any of these apply, don’t panic. Delays are not denials. Stay in contact with the insurer and provide whatever documentation they request.

Social Security Survivor Benefits

If you were married to the deceased, or if you are the dependent child of the deceased, you may be eligible for Social Security survivor benefits. These can provide meaningful ongoing income. According to the Social Security Administration, the average survivor benefit for a widowed mother or father with two children was approximately $3,761 per month in 2025.

Who qualifies

• Surviving spouse age 60 or older (or age 50 or older if disabled). You can receive reduced benefits starting at age 60, or full benefits at your full retirement age.
• Surviving spouse at any age if you are caring for the deceased’s child who is under 16 or disabled.
• Unmarried children under 18 (or up to age 19 if still in high school full-time).
• Dependent parents age 62 or older who received at least half their support from the deceased.

How to apply

You cannot apply for survivor benefits online. You must call the SSA at 1-800-772-1213 or visit your local Social Security office. Bring: death certificate, your Social Security number, the deceased’s Social Security number, your marriage certificate (if applying as a spouse), and birth certificates for any children.

One-time death benefit

Social Security also pays a one-time lump sum death benefit of $255 to a surviving spouse or eligible child. It’s a small amount, but it’s worth claiming. The funeral home or SSA can help you apply.

Probate: The Basics

Probate is the legal process through which a deceased person’s estate is settled and their assets are distributed. The word itself can sound intimidating, but the process is often more straightforward than people expect, especially for smaller estates.

When probate is required

Probate is typically required when the deceased owned assets solely in their name without a designated beneficiary. Assets that usually skip probate include:

• Jointly held property with right of survivorship
• Accounts with named beneficiaries (life insurance, retirement accounts, payable-on-death bank accounts)
• Assets held in a living trust

What happens during probate

1. The will is filed with the local probate court (or if there’s no will, the court appoints an administrator).
2. The executor or administrator inventories all assets and debts.
3. Creditors are notified and given a window to file claims (typically 3 to 6 months, depending on the state).
4. Valid debts are paid from the estate’s assets.
5. Remaining assets are distributed to beneficiaries according to the will, or according to state law if there’s no will.

How long does probate take?

Simple estates can be settled in 3 to 6 months. More complex estates, or those involving disputes, can take a year or longer. According to the American Bar Association, the average probate process takes about 6 to 9 months.

Do you need a probate attorney?

If the estate is small, straightforward, and uncontested, you may be able to handle probate yourself, especially if your state offers simplified procedures for small estates (many states have streamlined processes for estates under $50,000 to $150,000). For larger or more complicated estates, or if there are family disagreements, hiring a probate attorney is money well spent. Attorney fees for probate typically range from $3,000 to $7,000 for a straightforward estate, though costs vary significantly by state and complexity.

Protecting Against Identity Theft

This is something few people think about during grief, but it matters. The deceased’s identity is vulnerable to theft. Criminals monitor obituaries and public death records to open fraudulent accounts using the information of people who have recently died.

To protect your loved one’s identity:

• Notify the three credit bureaus (Equifax, Experian, TransUnion) and request that the credit file be flagged as “deceased.” You’ll need to provide a death certificate.
• Opt out of pre-approved credit offers by calling 1-888-567-8688 or visiting OptOutPrescreen.com.
• Monitor the deceased’s credit report for the next 12 months by requesting free copies at AnnualCreditReport.com.
• Shred any pre-approved credit card offers or financial solicitations that arrive in the mail.

A Note on Asking for Help

You do not need to do any of this alone. If you have a trusted family member, friend, or advisor who can help make phone calls, organize paperwork, or sit with you while you sort through financial documents, let them. Many people want to help after a loss but don’t know how. Giving them a specific financial task to assist with can be a gift to both of you.

If the financial situation is complex, or if you’re unsure about any legal or tax implications, please consult a licensed financial advisor and/or estate attorney. A single consultation can save you from costly mistakes and give you peace of mind during an already difficult time.

You Don’t Have to Do This All at Once

We want to end where we started. There is no timeline for grief, and there is no timeline for handling these financial tasks that you “should” be following. Some people find that tackling the practical steps gives them a sense of control during a chaotic time. Others need weeks or months before they can face the paperwork. Both approaches are completely valid.

Do what you can, when you can. Ask for help when you need it. And be gentle with yourself throughout this process. The financial details will get sorted out. What matters most right now is taking care of yourself and the people you love.

This guide is for informational purposes only and does not constitute financial, legal, or tax advice. Every situation is different. Please consult a licensed financial advisor and/or estate attorney for guidance specific to your circumstances.