Your next task is to locate and organize important documents and records. If you and your late spouse kept good records, this process should be relatively easy. However, if you used the “big box” filing system, you have some work ahead of you. Organizing important documents and records will make the job of concluding your spouse’s affairs easier.

The information you gather will be used to:

1. Assess your current financial condition;
2. Develop a long term financial plan;
3. File income, gift, and estate tax returns;
4. Administer you late spouse’s estate or trust;
5. Help you create your own estate plan; and
6. Allow for the orderly conclusion of your affairs at the time of your death.

The best way to get started is to open a separate folder for each category of documents or set of records discussed below. Label each folder in pencil until you know how many you will need.

Locate all life insurance policies on your spouse’s life, and put them in a folder labeled “Life insurance policies.”

Next, find your spouse’s original Last Will and Testament (“Will”).

Your attorney may have it in his or her file, or it may be in your home safe or bank safe deposit box. The Will should be filed with the probate court of the county in which your spouse resided at the time of death, even if there are no assets to be probated. Then, look for other estate planning documents such as his revocable trust, irrevocable trust, or charitable trust. Your spouse’s Will and trust name the people with authority to handle his post-death affairs. You are likely to find that you are the only person with that authority. If you are named with others, however, you should make a list of their names, addresses and phone numbers. You may also find a list disposing of specific personal items, sometimes called a “Personal Property Memorandum,” with your spouse’s other estate planning documents. Keep all of these items in a folder labeled “Estate Planning Documents.”

Make a list of the name, address, telephone number and social security number of each of your spouse’s children (if you are not the natural or adoptive parent) and other beneficiaries named in his Will or trust. You may need this information later, especially if any assets must be probated. Keep this list in a separate folder labeled “Beneficiaries.”

If your spouse was a veteran, you may be eligible for veterans benefits. To find out, you will need to contact the Department of Veterans Affairs and send a copy of his military records, including honorable discharge papers showing his branch of service, dates of service and rank. Keep these papers in a folder labeled “Military Records.”

Finally, locate the last two years income tax returns and put them in a folder labeled “Tax Returns,” along with any gift tax returns (Form 709) you find (see “Record Retention” in Chapter Eight).

Next, gather asset information. When it comes to financial matters, your task is threefold: first, you must create a folder for each asset (real estate, brokerage account, IRA, etc.). Second, you must enter each asset on the Asset Inventory With Values Worksheet. Finally, you must enter the date-of-death value of each asset under the column that corresponds to how the asset is owned.

Review pages: Asset Inventory with Values Worksheet

Assemble the following information with respect to each parcel of real estate owned by your spouse either individually or with others: a copy of deed (look for a document called either a “Warranty Deed,” or “Quit Claim Deed”), copies of most recent mortgage statements, including balance due, loan number, lender name and address, the property address, and copies of the last property tax bill. Put these items in a separate folder labeled “Real Estate.” You should create a separate folder for each parcel.

Next, locate the most recent bank, savings, and credit union account statements. Put the statements in a folder labeled “Bank Statements.” The statements should show the account owner, the name and address of the institution, the type of account, the account number, and the balance.

Find the most recent investment, mutual fund, brokerage, or other similar account statements. The statement should contain the exact name of the account, the number of shares, date purchased, purchase price (cost basis), and current value. File each account in a separately labeled folder. It is extremely important that you separate pre-tax investments (such as IRAs, and other retirement accounts) from regular (previously taxed) accounts. Pre-taxed savings are subject to an entirely different set of rules when it comes to investing, tax and estate planning (see Chapter Six: “IRA and Retirement Distributions”).

If your spouse had any stocks or bonds in “certificate” form (meaning that you have the actual stock certificate or bond), you should put a photocopy of the stock or bond in your folder and store the original in a secure place. Lost stock certificates and bonds are difficult to replace. If you have not kept records, you could even lose your investment. You should re-register the stock or bond in “street name” with your financial advisor, brokerage house, or bank as soon as possible. Securities held in street name are logged in the books of the financial institution. In exchange, your account at the institution (which should be in the name of your revocable trust) is credited with a corresponding number of shares.

To transfer stocks and bonds held in certificate form into street name, your financial advisor will need an original death certificate (and an original probate court letter of authority if the stock or bond was in your spouse’s name alone) for each company involved (for example, five stock certificated for one company is treated as a single transfer). You will be charged a fee based on the number of companies involved. Allow at least ten days for sales or other transfers in certificate form to clear. If you want to do it yourself, you can contact the “investor relations department” of the company in question and ask them how to go about transferring the shares into the name of the new owner. However, we recommend that you enlist the help of a professional. Having a particular financial institution make the transfer on your behalf does not obligate you to use their financial planning services in the future. Once you go through this process, you will undoubtedly resolve never again to own stocks or bonds in certificate form. Enter the value of the stock or bond on Asset Inventory With Values Worksheet.

If your spouse had an interest in a corporation, LLC, partnership, or other “closely held” (meaning not publicly traded on a stock exchange) business, gather all of the information you can find evidencing your late spouse’s ownership interest and file it in a separately labeled folder. The folder should contain the name of the business, the names and addresses of all officers or partners, the Articles of Incorporation (for corporations), Partnership Agreement (for Partnerships), or the Operating Agreement (for Limited Liability Companies, or “LCC”). Save business tax returns, if you find any, as they often contain valuable information including the names of all owners and the profitability of the enterprise. Also look for a “buy sell agreement,” where co-owners often contractually agree to buy out the deceased owner’s interest at death. Often, buy/sell agreements are “funded” with life insurance to allow the surviving owner to purchase the deceased owner’s interest in a single payment. When it comes to closely held business interests, you should contact the company’s attorney and accountant as soon as possible to determine your rights and responsibilities.

Save all life insurance policies. You may be required to submit the original policy to collect the proceeds. Review Chapter Four for tips on making a claim and the various settlement options available. Each insurance company should send you “Form 712” along with payment of the proceeds. Form 712 indicates the amount of the proceeds (including accrued interest) and the beneficiary to whom they were paid. Form 712 must be attached to the estate tax return (if one is required). Unfortunately, insurance companies often don’t send Form 712 unless specifically asked. Life insurance policies and Forms 712 should be filed in the “Life Insurance Policies” folder.

Next, determine the beneficiary of your spouse’s IRAs, 401(k) Plan, company retirement plan, or any other type of retirement plan. Most likely, you, as surviving spouse, are the sole beneficiary. You must determine when and how to begin taking distributions from these plans (see Chapter Six: “IRA and Retirement Distributions”). Request a copy of the beneficiary designation form from the plan administrator. Your request should be in writing, and should include the date of your spouse’s death, social security number, and a copy of the death certificate. Keep all retirement plan documents in a separately labeled folder.

Gather information on outstanding debts, such as credit card statements, medical bills, personal loans, vehicle loans, mortgages, etc. Keep these items in a folder labeled “Debts.”

Keep records of expenses that are deductible on the estate tax return: funeral expenses, accountant and attorney fees, administrative fees, and appraisal expenses (see “Form 706” in Chapter Eight). Put these items in a folder labeled “ Estate Expenses.”

Finally, read your mail carefully so that you don’t throw away important documents or notices. Ferreting out important mail has become more difficult in recent years as junk mail purveyors have mastered the art of making junk mail look important. File incoming mail in the appropriate file folder on a regular basis.

Sift through your safe deposit box. Add the name of a trusted family member to the box so that it isn’t frozen at your death. States no longer freeze safe deposit boxes. However, if the only name on the account is that of the deceased, authority to enter must be obtained from the probate court.