Key financial steps to take after losing a loved one

Allworth advisor Laurie Ingwersen, CFP^®, CRPC^®, CDFA^®, CBC^®, CEPA^®, outlines the key financial steps to take after losing a loved one, offering guidance to navigate immediate decisions and protect your financial future during a difficult time.

Losing someone you love is never easy. The emotional toll can feel overwhelming, and in the midst of grieving, managing finances can be the last thing you want to think about. But when you’re faced with the responsibility of handling someone’s financial affairs, knowing what to do—and where to start—can make a difficult process just a little bit easier.

Over the years, I’ve worked with many clients during this challenging time, helping them take small, manageable steps to work through the financial details while honoring their loved one’s wishes. If you find yourself in this situation, here are some key steps to take as you navigate what comes next.

1. Take a Moment Before Making Big Decisions

Grief can cloud our judgment, and it’s natural to want to “get things done” as quickly as possible. But when it comes to financial decisions, it’s important not to rush. Whether it’s deciding what to do with inherited assets, selling property, or adjusting your investments, take your time. Give yourself space to process, and don’t hesitate to lean on trusted professionals for guidance.

If a decision feels urgent, ask yourself: Does this need to be done right now, or can it wait? Often, it can wait.

2. Gather the Necessary Documents

The next step is to collect all the important paperwork. You’ll likely need:

Copies of the death certificate (you’ll need multiple)
The will and/or trust documents
Financial account statements (bank accounts, investment accounts, retirement accounts)
Insurance policies
Mortgage, loan, and credit card statements
Social Security or pension documentation

Having these documents in hand will help you begin notifying institutions, settling accounts, and ensuring your loved one’s financial affairs are handled properly.

3. Notify Key Parties

Once you’ve gathered the documents, you’ll need to notify key individuals and institutions. This might include:

Financial institutions: Banks, investment firms, and retirement account providers will need to be informed so they can guide you through the next steps.
Insurance companies: Contact life insurance providers to begin the claims process.
Social Security: If your loved one received Social Security benefits, notify the Social Security Administration to stop payments or explore survivor benefits.
Estate attorney or executor: If your loved one had a will or trust, working with the estate attorney can help ensure everything is distributed properly.

This can feel like a lot to manage at once, so consider creating a checklist to keep track of who you’ve notified and any follow-up steps you need to take.

4. Review and Settle the Estate

If your loved one had a will or trust, the executor or trustee will oversee the distribution of assets according to their wishes. If there was no will in place, the estate will go through probate, which is the court-supervised process of settling someone’s affairs.

This step may involve:

Paying off outstanding debts and taxes
Closing accounts (such as credit cards or loans)
Distributing assets to beneficiaries

If you’re managing this process, you don’t have to do it alone. An estate attorney or trusted advisor can guide you and help ensure nothing is overlooked.

5. Understand Your Inheritance and Tax Implications

If you’ve inherited assets, it’s important to understand the financial and tax implications. For example:

Retirement Accounts: Inherited IRAs or 401(k)s come with specific rules for distributions, which can affect taxes.
Step-Up in Basis: If you inherited property, the value for tax purposes “steps up” to its fair market value as of your loved one’s date of death, which can reduce capital gains taxes if you later sell it.
Life Insurance Proceeds: These are typically tax-free, but it’s still important to understand how they fit into your overall financial plan.

This is a good time to talk with your financial advisor or CPA to ensure you’re managing inherited assets in the most tax-efficient way.

6. Take Care of Yourself Financially

Losing a loved one often brings financial changes—especially if that person was contributing to your household income or financial security. Once you’ve addressed the immediate tasks, take time to review your own financial plan.

Some key areas to revisit include:

Your budget and cash flow
Life insurance needs or updates
Retirement planning adjustments
Estate planning updates (like updating beneficiaries)

This process can feel overwhelming, but it’s also an opportunity to take control of your financial future and ensure you’re prepared for the road ahead.

Moving Forward, One Step at a Time

When you’re grieving, even small tasks can feel like mountains to climb. Give yourself grace and permission to move at a pace that feels manageable. And don’t be afraid to ask for help—whether it’s from family, friends, or trusted professionals.

You don’t have to navigate this alone. If you find yourself in this situation and want a trusted partner to help guide you through these steps, I’m here to listen and provide support. Together, we can take it one step at a time.

Laurie Ingwersen, CFP®, CRPC^®, CDFA^®, CBC^®, CEPA^®

Partner Advisor

My father was a financial advisor who introduced me to the impact proactive planning can have on people’s lives at a very early age. At the same time, I also watched my mother struggle to make the right, forward-focused decisions after divorce—which ultimately led her to a life of financial insecurity. Forever moved by the sacrifices she made for us, I want to honor her by helping others avoid some of the mistakes she made. Now as a passionate financial professional myself, I strive to help others make sound financial decisions that expertly balance their priorities today and their future needs.

LEARN HOW I CAN HELP >>