Step by Step Guide to Managing a Loved One’s Finances After They Die

The passing away of a loved one can be devastating. Along with the feelings of loss and desolation accompanied by their death, there are several practical aspects that you need to take care of as their next of kin in Australia. One of the foremost things that need addressing is settling their financial matters.

How to Manage the Finances of a Loved One After Their Death

It is often difficult to think rationally and take care of the specifics during these times. As the next of kin in Australia, it is natural for you to feel overwhelmed and confused. If you are unsure where to start, here are five essential tips to help you navigate the practicalities of these trying times.

Task #1: Gather Important Documents

In the event of a loved one’s passing, rational thinking often takes a backseat as you are overwhelmed with feelings of loss and grief. However, it is one of those times when you need to take charge and face things head-on. After their passing, your most important task would be to gather all the important documents that belonged to the deceased. These documents include birth certificates, tax returns, life insurance policies, social security cards, etc. Keeping these documents handy can help you go through your task of dealing with your loved one’s finances efficiently.

Task #2: Notify the Appropriate People & Organisations

After gathering all the documents, comes the most challenging part— informing everyone of your loved one’s passing. You’ll also have to notify the appropriate organisations, such as the Social Security Administration, and file for a death certificate with the state. Your other responsibilities include notifying the beneficiaries nominated in your loved one’s insurance policy so they can make their claims.

Task #3: Pay All Bills & Debts

As your deceased loved one’s next of kin in Australia, your most important responsibility will be paying off any outstanding debts or bills they leave behind. It includes car loans, credit card balances, mortgage payments, and medical bills. Depending on their financial situation, you will most likely be able to pay them off using their assets like retirement accounts or life insurance benefits. You must consult a financial planner if you realise that your loved one’s assets are insufficient to cover the debts. They will help you work out a payment plan with all the creditors.

Task #4: Manage Assets & Property

Assets and property is an umbrella term for houses, pets, cars, valuables, digital assets, social media accounts & passwords, and other private personal information. As the next of kin in Australia, you will be responsible for managing any assets or property your loved one owned in their lifetime. You’ll be responsible for deciding what to do with all that your loved one left behind. You’ll also have to look into closing their bank accounts, transferring ownership of their car, or selling their house.

Task #5: Seek Professional Help if Necessary

We understand that dealing with the financial matters of a deceased loved one can be an emotionally exhausting task. So, it is always advisable to seek help from a professional, such as a financial planner or an accountant, to help you sort through the matter effectively. Professionals will help you look through the finances of your loved ones and chart a plan to manage them efficiently.

What is Probate? How do I Know if Probate is Required?

In Australia, the next of kin of a deceased person applies to the Supreme Court for certification that:

● The person (deceased) has passed away

● They have left behind a valid Will

● The executor(s) designated in the Will are in charge of managing the deceased person’s estates.

Most executors often need to apply for a Grant of Probate before they can manage the estate of their loved one who has passed away. However, applying for Probate is not a compulsory legal process in most cases. The question might arise, “How do I know if probate is required?”

In Australia, acquiring a Grant of Probate is only necessary if asset holders and any other institution request the executors to show some evidence of their legal authority to manage their deceased kin’s estate.

You can learn more about the asset holder’s policy on Probate by asking them about their deceased estate policy. As the executor of your loved one’s Will, some instances where you will require a Grant of Probate include:

● When you want to access funds in a bank account or deal with shares that exceed a certain threshold, usually the cap is set at $50,000.

● While you are accessing Superannuation payable to the estate

● When you seek a Refund of an Accommodation Bond (RAD) from a facility for aged care

● While you seek to transfer the title of real estate solely held by the deceased

Find Highly Qualified Probate Services in Australia

Probate Consultants is one of the highest-rated Probate services in Australia. And we are committed to making the Probate application process for the next of kin in Australia a fast, easy, and affordable procedure.

We understand that the passing of close kin is difficult for you. And hence, we’ll try our best to ease these proceedings. Regardless of the size of the estate, we offer the same Fixed Fee Australia-wide. We are upfront about the total out-of-pocket costs involved in the process, so you do not have to encounter any surprise expenses later.