The Quicken Loans Zing Education Guide Managing Your Finances After the Loss of a Loved One
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The Quicken Loans Zing Education Guide Managing Your Finances After the Loss of a Loved One Here, you’ll learn everything you need to know about managing finances after losing a loved one. If this is an experience you’re facing, know that we’re here to help. QuickenLoans.com | 800-QUICKEN 1 Managing Your Finances After the Loss of a Loved One TABLE OF CONTENTS Introduction ..................................................................... 3 Manage Funeral and Other Related Expenses ................................. 4 Protect Your Home and Your Family ..........................................5–7 Manage Your Bills ...............................................................8 Protect Your Credit ...........................................................9–10 Maximize Your Cash Flow ....................................................10–11 Establish Your Own Credit Rating ...............................................12 Plan for the Future ..............................................................13 Never Stop Learning: Count on Quicken Loans for Life ........................13 Contacts to Keep Handy ........................................................14 Quicken Loans Financial Checklist ...........................................15–17 Quick Tips .......................................................................18 QuickenLoans.com | 800-QUICKEN 2 Introduction Managing a loved one’s finances after death can be a difficult task. We understand, and we’re here to help. Quicken Loans has been helping families through financial challenges for more than 29 years. We’re here to inform you about the financial resources you may need to get through this difficult time. Keep in mind, this guide isn’t meant to replace the valuable advice of a tax expert or a financial advisor. Please consult these professionals before making financial decisions. This Guide Can Help You… • Manage funeral and other related expenses • Protect your home and family • Protect your credit rating • Maximize your cash flow • Establish your own credit rating QuickenLoans.com | 800-QUICKEN 3 Manage Funeral Expenses Many families are unprepared when the time comes to make final arrangements for their loved ones. Choosing funeral arrangements can be a difficult and costly process. The following information is intended to help you explore your options so you can make the best choices for your situation. Find Out if You’re Eligible for Assistance with Funeral Costs Contact the Social Security Administration, the Department of Veterans Affairs or your state’s health and human services department. Every little bit can help make funeral arrangements more affordable for you. Set a Budget Your budget should be based on the funds you have available from the resources mentioned above, life insurance or the estate. Prices for caskets and services vary greatly, so be prepared to shop around. (Don’t be afraid to accept help from close friends or family members.) Viewing, funeral ceremonies and a typical casket can cost $5,000 or more, excluding charges for a burial plot and fees a cleric may charge. Less expensive options include a graveside-only service or cremation, which can cost between $1,000 and $2,000. Plus, expect additional expenses, which can include travel accommodations, child and elder care, attorney fees and catering. Look into Payment Plans Contact funeral homes in your area to ask about payment plans. Request an Itemized Price List Ask for an itemized price list (required by federal law), and make sure you understand everything it includes. QuickenLoans.com | 800-QUICKEN 4 Your Home Equity: A Valuable and Useful Asset Consider the equity in your home as a possible source of funds for covering some of these unexpected expenses. If this makes sense in your situation, a Quicken Loans Home Loan Expert can help you decide what type of loan you need and how much you can borrow. Paperwork fees can quickly add up as well. If your loved one had life insurance, you can cover some of these expenses when the payment comes. If you’re covering expenses out of your pocket, be sure to keep your receipts, and, if possible, get reimbursed from the estate. Consider that lost income is another financial factor. Because your loved one will no longer receive a paycheck or social security payments, your total financial picture may change. Also, depending on your own employer’s policy, you may lose income if you take an extended leave from work. Protect Yourself from Scams Unfortunately, survivors are sometimes preyed upon by con artists. They obtain names from obituaries and send fake bills in the name of either the deceased or the survivor, hoping the bill will be paid out of confusion. If you receive an unfamiliar bill, contact the creditors to ask for a detailed explanation of the charges. Protect Your Home and Your Family In times of grief, people tend to put aside their financial demands at home. If there is a lot on your plate, it may be a good opportunity to accept the help of close friends or family. It’s important to protect your home and family at this transitional time. Be Prepared Obtain Copies of the Death Certificate You’ll need about 10 original copies of the death certificate to manage most of your loved one’s financial affairs. If you’re the next of kin or the estate executor, you can get the death certificate from the courthouse in person or by mail. Find Financial Records Locate all of your loved one’s bills and financial records. If this is difficult, try to locate payment stubs or a check register to get started. Last year’s tax return is another good place to find information regarding bank accounts, retirement accounts and other assets. Call the companies listed on the tax return for further information. QuickenLoans.com | 800-QUICKEN 5 Make a List of Your Bills It’s a good idea to make a list of company names, debt amounts and payment schedules. We’ve included a checklist at the end of this guide to help you get started and track your progress. Accounts to Consider • Credit cards • Utilities • Bank accounts • Mortgage • Home equity loans • Auto loans Joint Accounts Consult your tax advisor regarding how to proceed with existing joint accounts. This could protect you against blemishes on your credit score, or even from fraud. Know Which Debts Are Yours Unfortunately, when some people are grieving, they accidentally pay bills they don’t actually owe. That’s why you should have as much information as possible to protect yourself. It’s best to go over all of your loved one’s debts with a trusted financial advisor to find out which debts you’re responsible for repaying. A Helpful Tool Quizzle.com is a powerful online tool that helps you sort out your home finances. And Quizzle does it all without ever asking for your Social Security number. At Quizzle.com, you’ll get everything you need, including a personalized budget and advice to help manage your finances in the future. QuickenLoans.com | 800-QUICKEN 6 Manage Life Insurance, Pension Plans and Retirement Funds If your loved one was still working, meet with the human resources manager at his or her place of employment as soon as possible to find out about any funds to which you may be entitled. Plan carefully when managing the funds you receive. You may face the decision to pay off your existing mortgage or to keep your money in liquid investments. Check your mortgage documents carefully to see if you face a penalty for paying off your loan early. Quicken Loans never charges pre-payment penalties, but many lenders do. Work with a financial planner to avoid making choices that could prove costly. Some people find a financial planner through a friend or family member’s referral. However, if you prefer to find your own financial planner and need assistance, contact the Financial Planning Association by visiting FPAnet.org or by calling (800) 322-4237. Find Out if You Owe Estate Taxes Many people don’t have to pay estate taxes, but this is something only your tax advisor can tell you. Consult with Experts Life insurance benefits, investments, retirement accounts and income from the sale of your home can have major tax, estate and investment consequences. Consult an expert who can help you avoid making rushed, and potentially costly, decisions. Again, contact the Financial Planning Association with questions. Mortgage and credit issues require special financial expertise. Quicken Loans Home Loan Experts have experience, knowledge and more than 100 mortgage programs to fit your individual situation and help you successfully handle these difficult issues. QuickenLoans.com | 800-QUICKEN 7 Pay Your Bills During this time, your mortgage payment is likely the last thing on your mind. While every mortgage provider has a different policy, some may be accommodating should you send a late payment during this time of grief. An important step to take is to contact your mortgage company to let them know your situation. If you’re a Quicken Loans client, our client care specialists can help you when you call (800) 863-4332. Protect your home and credit score by paying important bills in a timely manner. If you find yourself with limited resources, determine your bills that take priority. Here’s a list of critical bills you may want to consider paying first to protect your family’s financial future. (Feel free to use the checklist at the end of this guide to keep track of your progress.) Priority Bills That Need Immediate Attention • Mortgage or rent • Real estate taxes • Insurance If you’re remiss in paying these debts, your life could get out of control very quickly. Consider refinancing your mortgage to lower your monthly payments. A Quicken Loans Home Loan Expert can show you loan programs that can better suit your budget. Other Critical Bills That Need Attention • Health insurance • Essential utilities • Credit cards • Car loans or leases • Income taxes Pay any taxes you owe that aren’t automatically deducted from your paycheck. Always file a federal income tax return, even if you can’t afford to pay the balance you owe.