A Brief Discussion: Financial Concerns When Someone Dies

by Jeff Keill CFP, CIM, FMA, Portfolio Manager and Senior Wealth Advisor Keill & Associates- Advisory Team

When death occurs it’s devastating for family and friends. Through grief and disarray some issues that need to be dealt with can be overlooked or mistakenly delayed. Here is a short list of some of the immediate financial concerns that Keill & Associates feel are important to be dealt with as soon as possible.

THE WILL

If the deceased had an existing Will it may be held at the office of the lawyer who drafted the Will. The person selected to be Executor by the Will should contact this lawyer as the Will may need to be ‘probated’ before further action can be taken. If the deceased died without a valid Will then someone who is willing to act as Estate Administrator, or a Beneficiary to the Estate, should seek professional advice before proceeding.

INSURANCE

Contact all insurance companies of the deceased regarding policies, such as life, car and boat, home owner’s and any other insurance that may be in force. There may very well be a death benefit or a refund of the unused portion of the premium.

RESIDENCE

If the deceased lived alone, the Executor should notify all utilities, landlord, City Hall, newspapers, ect. The Executor should always advise the local Post Office where to forward mail. This ensures that precautions have been taken to avoid possible theft and or lack of insurance coverage.

CAR

If the deceased owned a car, notify the local Ministry of Transportation, the car insurance company, and any creditors to the vehicle.

DEBTS AND INSTALLMENT PAYMENTS

Check these promptly as there may be insurance clauses that would see them paid off. Consult with creditors if there is to be a delay in meeting the payments until the Will has been probated or Letters of Administration have been granted. Ask for more time before payments become due.

BANKS, TRUSTS, AND CREDIT CARD COMPANIES

The Executor should also notify any institutions where the deceased had accounts. Inquire about the existence of safety deposit boxes or possible loans.

FORMER EMPLOYER

Notify the former employer and check with the personnel department in respect to any company pension plans, group RRSP’s, or insurance plans. Some are eligible for a termination salary if they were employed at the time of their death. There may even be a death benefit available for a pensioner.

CANADA PENSION PLAN

There may be a CPP lump sum benefit payment to help cover funeral costs and a Survivor’s Pension which may be applied for. Contact Canadian Pension Plan to notify them of the death.

OLD AGE SECURITY

Inform the OAS of the death as the spouse of the deceased may be affected. Any benefit that has been paid in the months after death will need to be repaid. It is best to stop payments as soon as possible.

VETERANS

If the deceased was receiving benefits through the Department of Veteran’s Affairs, contact the local office to see if there is any death benefit available.

INCOME TAX

Even if there is no tax liability, an income tax return should be filed for the deceased for the tax year in which the death occurred. All relevant information should be kept.

Although this list may cover many areas of immediate concern, it is not intended to encompass all issues related to the newly formed estate. An Executor should seek professional advice in handling any estate. Please contact our office if you need assistance in this matter.

Disclaimer and Notice to Reader: This Discussion Paper should not be construed as legal or tax advice but rather only as a general statement and explanation of the topic matter. Professional tax and legal advice should be obtained for the readers own personal situation. For more information on this topic or how it applies to your family, please contact our Wealth Advisory team.

Last Edit Jan 29, 2025