4 Important Financial Tasks to Complete After Losing a Loved One

When someone passes away, the emotional and logistical challenges can seem overwhelming. Most families focus on the major estate items, but several smaller financial matters after death are equally important, and they’re often overlooked.

Tackling these details early can help prevent fraud, avoid unnecessary expenses, and keep your own planning up to date.

4 Key Pieces of Financial Advice After the Death of a Parent, Spouse, or Loved One

At a Glance

Here are four of the most common missed financial steps after the death of a parent, spouse, or other loved one that we see at Spaugh Dameron Tenny:

1. Secure their digital accounts and subscriptions.
2. Notify the credit bureaus to reduce identity theft risk.
3. Review lesser-known insurance policies and potential benefits.
4. Update your own estate documents and beneficiary designations.

1. Secure Digital Accounts and Online Information

Most people leave behind a meaningful digital footprint. If these accounts remain active, forgotten subscriptions can continue billing, and personal data may stay exposed.

Cancel Recurring Subscriptions and Memberships

Review recent bank and credit card statements to identify recurring charges, such as streaming services, software subscriptions, gym memberships, or professional dues. Canceling these stops ongoing charges and closes accounts no longer needed.

Protect Digital Files and Online Profiles

Important photos, documents, and personal records are often stored in cloud accounts that require proper authorization to access. Determine what needs to be retrieved or preserved.

Many platforms offer options to deactivate or memorialize accounts:

• Facebook memorialization
• Google’s Inactive Account Manager

Handling this step helps maintain privacy and safeguards sentimental items that families may want to keep.

2. Notify the Credit Bureaus to Reduce Fraud Risk

Although government agencies typically report deaths to the major credit bureaus, taking direct action provides an extra layer of security. The FTC recommends placing a credit freeze after a death to prevent identity theft (Source: Federal Trade Commission).

Request a Credit Freeze or Death Notice

Contact Equifax, Experian, and TransUnion to notify them of the death. Requesting a freeze or adding a death notice helps prevent new accounts from being fraudulently opened.

Monitor for Suspicious Activity

Continue monitoring the deceased’s credit reports for several months. If mailing documentation, use certified mail and keep copies to ensure a clear paper trail in case any issues come up later.

3. Review Lesser-Known Insurance Policies and Additional Benefits

Life insurance often gets immediate attention, but other policies or programs might need updates or have benefits that are easy to miss.

Adjust or Discontinue Insurance Coverages

Review health, auto, and homeowners policies. Removing the deceased from certain coverages can lower costs, but confirm that the remaining family members and property still have appropriate protection.

Look for Overlooked Benefits

Past employers, unions, membership organizations, credit card companies, and veterans’ programs sometimes provide death-related benefits or small payouts. These often go unclaimed because families are unaware they exist.

4. Revisit Your Own Estate Documents and Beneficiary Designations

A loss often reshapes family dynamics and financial goals. It’s a good time to ensure your current intentions align with your financial planning after loss.

Update Your Will and Any Trusts

If the deceased was named as a beneficiary, executor, guardian, or trustee, those documents might now require updates. Keeping everything up to date helps ensure your wishes remain clear and legally valid.

Review Beneficiary Designations

Assets like retirement accounts and life insurance are transferred according to beneficiary designations, not your will (Source: IRS). Check that each account lists the correct individuals and reflects any updates to your situation.

FAQ: Financial Steps After Losing a Loved One

Which financial accounts should be updated first?

Start by notifying banks, insurers, Social Security, and investment custodians with certified copies of the death certificate. This helps prevent unauthorized access and ensures claims or distributions are handled correctly.

Do digital accounts need to be closed?

Yes. Subscriptions should be canceled, and email or social media accounts should be deactivated or memorialized according to each platform’s policies.

How can I reduce the risk of identity theft after a loved one’s death?

Notify the three credit bureaus and request a credit freeze or death notice. Monitor the credit reports for several months to detect any unusual activity.

Do beneficiary designations override a will?

Yes. Retirement accounts, annuities, and life insurance policies are paid to the beneficiaries named on the account, even if the will names someone else.

When should I update my estate documents?

Review your estate plan whenever your family structure changes, such as after the death of someone named in your will or trust.

Why These Tasks Matter

Addressing these items brings order during a difficult time and shields your family from future issues.

You don’t need to tackle everything at once, nor do you have to do it alone. A financial professional can help you understand what requires immediate attention and what can wait.

If you’d like support navigating your financial affairs after death, the team at Spaugh Dameron Tenny is here to help coordinate the details with care and clarity. Schedule a discovery call to learn more.

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