Ten steps to take when dealing with a recent death

1. Focus on grieving at first.

Most money matters don't need to be addressed immediately. Find out what urgent things there are such as mortgage payments or other bills that are due regularly. While these things can be sorted out if paid late, it can be a bit easier to keep them paid on time. It's especially important if you or someone else will continue to live in the home of the deceased. Once you've taken care of those urgent things, put the rest aside and spend the time with friends and family.

2. Arrange the funeral.

Make sure that you carry out any special instructions that were outlined in the will or elsewhere. Some people pay for their funerals in advance, so see if that's been done. Find an estate lawyer to help you read and understand the terms of the will. A funeral home can help you arrange all the details of the funeral service and burial.

3. Look for books and resources.

If you'll be responsible for settling the estate, these books can help you sort things out: 

• Plan Your Estate by Denis Clifford: www.nolo.com/products/plan-your-estate-NEST.html
• Estate Planning Basics by Denis Clifford: www.nolo.com/products/estate-planning-basics-ESPN.html
• Nolo Press' Quicken Willmaker: www.nolo.com/products/quicken-willmaker-plus-2010-WQP.html
• Estate Planning Smarts by Deborah Jacobs: estateplanningsmarts.com

Locating wills and trusts, assuring life insurance proceeds are paid out properly, filing an estate tax return, locating retirement accounts — there can be quite a few tasks to take care of and the process is very formal, as set by state laws. Any good guide to the topic will walk you through each of these areas and help you identify the tasks that you need to do.

4. Get certified copies of the death certificate.

You're likely to need several certified copies of the death certificate, so get them as soon as possible. It's common for this to be offered to you while making funeral arrangements.

5. Switch any bank accounts out of the name of the deceased.

How to do this depends on the titling of the account; a joint tenancy, for example, will pass automatically to the survivor once you present a death certificate to the bank. You may need to open an account in the name of the estate to collect some of the assets.

6. Check on your household budget.

If this death affects the income of the household you live in, draw up a budget and understand how you'll cope with the changes.

• See also: Budgeting

7. Check on insurance.

Make sure all the necessary insurance stays in place, particularly for those who had been covered under the policy of the deceased. Examples include health or homeowner's insurance.

• See also: Insurance

8. Notify everyone who needs to know of the death.

At first, this means friends and family, but there will be a long list including government agencies, financial institutions, alma maters and others. Again, look to a book for specifics as there are many variations.

9. Safeguard your inherited money and insurance payments.

If you just inherited money or life insurance proceeds, make sure the money is safe and put off any long-term planning for a while. It's natural to feel some urgency to act soon, especially if the amount is large. But this is probably a vulnerable time for you, and it can be hard to make good decisions while grieving. Many experts advise putting your inheritance in a completely safe place like a bank account, and waiting at least 3-6 months before making any major changes.

Some exceptions are:

• Look at the risk level and move it to lower-risk accounts.
  If the money is invested in something very risky that might lose value quickly, you may want to move it to another account. (You may want to see a professional for help assessing this.)

• Use it to pay off debt.
  If you have high-interest credit card balances or other debts that are causing major financial stress. It may make sense to at least reduce that stress by paying down some of the debt, particularly if the amount is small relative to the amount you received.

10. Get professional legal and financial help.

Settling an estate can get complicated and require a lot of professional help. For more detailed guidance, we highly recommend that you check out one of the many guides to settling an estate and dealing with other matters after a death. One excellent source of information is self-help legal publisher Nolo Press, which has several books that can be of help as well as a website outlining some of the key issues.

• See also: Wills and estate planning

Links we like

Here are some online resources you may find useful:

• Plan Your Estate by Denis Clifford: www.nolo.com/products/plan-your-estate-NEST.html
• Estate Planning Basics by Denis Clifford: www.nolo.com/products/estate-planning-basics-ESPN.html
• Nolo Press' Quicken Willmaker: www.nolo.com/products/quicken-willmaker-plus-2010-WQP.html
• Estate Planning Smarts by Deborah Jacobs: estateplanningsmarts.com