When a loved one dies those left behind must navigate feelings of grief while also dealing with their estate. This can require a need to go through accounts and insurance policies, dividends and even an old school review of boxes of paperwork. It is common for the process to stall while looking for and organizing assets. The goal in this situation seems simple: locate everything, document authority then move assets into the estate administration process. Unfortunately, the reality can be much more complex. The following will provide some tips to help ease the process and better ensure everything is accounted for.
Start with legal authority and a working file
Financial institutions rarely release information without proof of authority. For a probate estate, that usually means letters testamentary or letters of administration. For a trust, that means a certificate of trust plus trustee identification. Gather death certificates, prior addresses, Social Security number and create an asset log with columns for institution, account type, last known address, status and documentation requested.
Forgotten bank accounts and investment accounts
Begin with a review of mail, email, tax returns, and prior bank statements to make sure everything is accounted for. Review the decedent’s last two years of tax forms like Form 1040. Look for interest, dividends, capital gains and IRA distributions. Those lines point to specific institutions, then to specific accounts. It is also helpful to check for 1099-INT, 1099-DIV, 1099-R, 1099-B, K-1 forms.
Before expanding the search, confirm the key asset categories:
- Checking, savings, money market, CDs
- Brokerage accounts, DRIPs, mutual funds
- IRAs, 401(k)s, pensions, annuities
- Life insurance, HSA accounts, employer benefits
After putting together a list, request date-of-death statements, beneficiary designations and payable-on-death instructions. Beneficiary assets often pass outside probate though they still matter for tax reporting and equalization among heirs.
Safe-deposit boxes and the “where did the documents go” problem
A safe-deposit box can hold wills and deeds as well as assets like stock certificates, jewelry and bonds. Access rules vary by state. Some states allow limited access to locate a will, others require court authority. It is wise to ask each bank where the decedent banked whether a box exists. If so, check for a box key and request the bank’s procedures in writing.
Unclaimed property searches and escheat
Unclaimed property laws require financial institutions to turn dormant assets over to the state after a period of inactivity. That creates a second path for “unclaimed money after death.” Search each state where the decedent lived, worked, owned property or received mail. After submission, expect delays. States often request notarized forms and additional evidence before they will process the request.
Hidden assets can cause difficulties when distributing an estate after a loved one dies. A review including disciplined search, proper authority documents, written requests to institutions and statewide unclaimed property checks can turn a fragmented financial picture into a complete estate map. Those with complex estates can benefit from additional help. Legal counsel with experience in this area of law can better ensure all assets are accounted for before closing the estate.