Planning Priorities and Timelines
The financial priorities and deadlines that you need to be aware of relate to monthly household expenses and taxes. Your planner or accountant will be able to help you sort through these and prioritize what needs to happen right away, versus what you can put off until later.
My partner died with more credit card debt than assets. His creditors are calling our home and harassing me about paying his bills. Should I pay them off?
No. You can't blame them for trying, but creditors must get in line to be paid according to a specific probate protocol. Many people die with more debt than assets; it's common for some unsecured creditors such as credit card companies to go unpaid.
No Quick Decisions
Resist the impulse to throw yourself into the process of managing the finances by making big, permanent, or expensive decisions such as buying or selling investments. Focus first on paying the daily household bills such as the rent, mortgage, utilities, and loan payments that are in your name. Check Chapter 1 for help understanding the types of statements and monthly bills you should be expecting and how to organize the information into an income-and-expenses worksheet and a net-worth statement. This will be the start of understanding the big picture so you can make longer-term planning decisions.
Planning for Cash Flow
Collect the bills that arrive solely in your partner's name, but don't pay them unless they are related to your housing, safety, or convenience, such as paying the car payment or insurance. Contact life insurance companies as soon as possible. As the beneficiary, you'll receive a check or a checkbook to access your benefit.
You aren't liable for the debts of your partner or your spouse unless you cosigned, or the debt was assumed jointly. If you inherit an asset such as a house or a car that serves as collateral for a debt, then you'll need to arrange to take over the payments.
Long- and Short-Term Timelines
If your partner was over age 70½, then you need to confirm that the required minimum distribution was made from her retirement accounts. Contact her former or current employer to see if you need to make any decisions about stock options, restricted stock, or other employee benefits by a certain time.
If you're married, you'll still file your tax return at the regular time. If you're the executor for your partner's estate, you'll be responsible for filing her final tax return. If you plan to disclaim any inherited benefits so they can pass to the next generation, you'll generally need to do so within nine months. Check the Web Resources section in Appendix B for a list of links to timelines you need to watch.
