THE GARTENHAUS REPORT Volume 1007

FIVE THINGS TO DO IMMEDIATELY AFTER LOSING A LOVED ONE

When a loved one passes away, there are many issues the survivors need to navigate. Making funeral arrangements, notifying friends and family and starting the grieving process are high on the to-do list. Unfortunately, there are also several critical financial tasks that will need your attention.

1. Death Certificates

The first task is to contact the Vital Statistics office in the state in which the death occurred. You may also be able to orders these through the funeral home. In my experience, you will probably need more of these than you may initially think. Some institutions may accept a copy, but most will require an original certified document.

2. Probate the Estate

Assuming the decedent had a will, it most likely named an executor who is in charge of carrying out the final wishes and distributing property. If the individual died without a will the state will provide a list of those who may serve as executor. If you are the named executor, you should obtain letters testamentary, which provide proof that you have the right to handle the financial affairs of the decedent. You are encouraged to consult with a qualified estate attorney to assist you.

3. Notify Financial Institutions

Once you receive the death certificates and letters testamentary, contact any insurance company where the decedent had an insurance policy. This may include employer sponsored plans as well as individually owned policies.

Notify all banks and investment companies where the decedent had accounts. It is critical to understand that these accounts most likely will be frozen upon notification, so plans should be made in advance to prevent any hardship this might cause. You will provide death certificates and letters testamentary for each account and open new accounts in the names of the beneficiaries in order to receive the assets. Also, check to see if any pensions might include survivor payments.

You should also notify any mortgage or credit card companies. Any debts are now the obligation of the deceased’s estate. (If the decedent was married, the obligation may shift to the surviving spouse).

4. Contact Service Providers

Contact utilities and service providers to change or discontinue services. Some you may want to cancel right away, but others like electric, water and lawn care may be continued to properly maintain a property. It is helpful to look over credit card statements to identify less obvious charges like gym memberships or subscriptions.

5. Notify Government Agencies

A surviving spouse or child may be entitled to receive a one-time $255 death benefit from Social Security. Additionally, survivor benefits may be available for children under 16 (or disabled children of any age) and to spouses or ex-spouses (if they were married to the deceased for at least 10 years). Both a spouse and ex-spouse may qualify for un-reduced survivor benefits at the same time.

Facing the death of a loved one can be extremely daunting. Knowing what to do when it happens can bring some comfort and order to survivors. Unfortunately, as our clients age, this issue becomes a reality more and more often. Please know that we are here to help you when you find yourself in this difficult situation.

THE END OF FILE AND SUSPEND

Over the past few years, we have spoken to many of you about ways to maximize social security benefits. For some, that meant File and Suspend. Due to changes in the law, this will only be available for a few more months.

File and suspend is only for those who are at Full Retirement Age (FRA) and not already receiving social security benefits. FRA is the age when a person is entitled to unreduced retirement benefits. Since it ranges from age 65 – 67 depending on your date of birth, we will consider FRA to be age 66 for this article. Many opt to take benefits before they reach FRA, as early as age 62. While this may make sense in some instances, you should understand those monthly benefits are reduced by 30% if we start at the earliest date possible.

Here’s what makes file and suspend so special. Let’s say we have a couple, Bill and Bonnie Smith. Bill is 66, while Bonnie is 64. Bill’s monthly benefit at FRA is $2,000, and Bonnie’s is $1,500. Since they are healthy and have enough resources at their disposal, we decide file and suspend makes the most sense. Here’s how it works. Bill files for his social security benefit at FRA, then immediately suspends receiving his monthly payment. This allows Bonnie to claim spousal benefits, which equal 50% of Bill’s monthly. So while Bonnie is receiving $1,000/mo., both of their monthly benefits are growing at a guaranteed rate of 8% each year till age 70. Bill’s monthly payment at age 70 goes from $2,000 to $2640. Bonnie goes from $1,500 to $2,040. Fantastic!

One factor to consider is Medicare premiums. Typically premiums are deducted from Social Security checks. Since you suspend receiving benefits, thus not receiving a check, you will be billed directly. Please be sure to pay those premiums or risk losing Part B coverage.

There are additional factors to consider before deciding on this approach, so please discuss this with us before taking any action.

If you have any questions on this, or would like us to run a report about how this will look for your specific situation, please do not hesitate to call or email.

CURA CORNER "Cura Personalis" is a Latin phrase that translates as "care for the entire person". Cura Personalis suggests individualized attention to the needs of others, distinct respect for his or her unique circumstances and concerns, and an appropriate appreciation for his or her particular gifts and insights.

 GET A LIFE! YOUR KIDS HAVE ONE

You just spent the last 18 years or more being a parent and all that means. Starting with the excitement and absolute bliss of learning you were going to become parents, followed by the wake-up call that is parenting: up all night with a new baby, projectile vomiting (nobody warned me about that), dirty diapers (remember arguing over who's turn it was), potty training, and never leaving the house without a heavy diaper bag and lots of equipment.

As your children grew, it became necessary to ALWAYS be a good role model. You were constantly setting standards, providing moral guidance and a religious background, pushing homework and enforcing deadlines and curfews. There were early morning breakfasts, packing lunches and preparing dinner for the family. Then there were the carpools and car rides for sports teams, ballet classes and practices of all kinds. The list is endless and exhausting, but in spite of it all, it was a road filled with tears, laughter and joy.

So why the long face? The furrowed brow? Sometimes the idea of an empty nest is scary or overwhelming. For the last two decades your identity has been someone’s “Mom” or “Dad.” Who are you now? When my kids went off to college I wanted to get a tag for my car that said "My turn.” And once again, it is time for you.

First on my list is to take the time to reconnect. Revisit the reasons why you married 20 some years ago. Go out and do things that you did before the kids - get season theatre tickets or take a ride on a Sunday afternoon and get lost on purpose.

The best part of this stage of life is that you can do what you want and a baby sitter, or the worry about that clandestine party, is not needed. You can get up and go whenever you want. (except for possibly the dog.) You can be spontaneous again. You can sleep late and go to a leisurely brunch at noon, or a six p.m. movie and the hottest new restaurant afterwards. Enjoy an early evening wine tasting, pick up dinner from your favorite take out and enjoy it at home by the fire.

Take the opportunity start doing things you've never done before. Take up fishing, yoga, meditation, golf, photography or a new language. The list is endless. I highly recommend trying to make this something you discover as a couple. And the good news is, the more of these things you do, the healthier it is for you. Yes, fun and good for you.

The best thing to get myself out of my own head is volunteering. Nothing is more enlightening than seeing life from the perspective of others. If you love to cook, go to a shelter and teach kids how to eat healthy and bake bread. If elderly folks are your thing, go to a senior center and visit with someone who has no family or friends left. If you served our country, you may want to counsel young veterans with PTSD and physical injuries. Your skills and experience are needed somewhere. Go and find out where your help is needed. It feels really, really good when you come home and tell your spouse about your day.

If you are more adventurous and committed, you may want to couple volunteering with travel, even to a remote area or an exotic foreign country. While this may bring to mind the long term commitment of the Peace Corps, there are many organizations that can assist you in finding short term volunteer opportunities of all kinds. Many charge substantial fees for the experience and others have eligibility requirements, so be sure to research thoroughly before you jump in! Here is one resource that might help you get started:

https://www.buildabroad.org/resources/the-ultimate-guide-to-volunteering-abroad/thank-you/

Of course, there's always plain old travel. Almost everyone has one or two places in the world they are anxious to visit, that just wasn’t an ideal family vacation spot. My list included Myanmar (psst, it used to be Burma) which is amazing and as yet unspoiled by modern culture. And while you are traveling, try new things, sometimes crazy things. Believe it or not, last year I went swimming in the ocean with sting rays even though I have a pathological fear of water.

If you don't already have a family dog or cat, get a pet. There are millions of cats and dogs waiting in shelters desperate for a home like yours. You can save a life! And pets are so much easier than kids. They don't have homework, they love you no matter what you look like, they don't argue, talk back, or get in trouble with the police. And the adoration is endless. They get you out of the house walking in the crisp fall air. Pets make you laugh. And best of all, dogs and cats both encourage the production of endorphin and good feelings in your body and mind. What's not to like?

Keep in mind that the old adage, absence makes the heart grow fonder, applies to your kids too! Quite often with the time and distance, your children will develop a refreshing new attitude towards you. So keep some time in your busy schedule to enjoy the company of the fruits of your parental labor - a budding adult!

What? That's not enough ideas?

How about doing back to school? Not to further the field you are currently in or just retired from; go back to school to be a writer or become a professional chef. It's not too late to study art, philosophy or music. Get certified as dog trainer or midwife. My next step is to take a class on being a vet tech so Howard and I can take in more rescue animals.

Some things won't work out or you won't like them, that's okay. You might meet a new friend when you chat and realize you both hate pilates.

It's all about attitude. You can sit home and vegetate or grab the reins and ride the rodeo of adventure again. It's up to you.

HOLIDAY GREETINGS

from the Gartenhaus Financial Family.   Whatever is beautiful, Whatever is meaningful, Whatever brings you happiness... May it be yours this Holiday Season and throughout the coming year!

The opinions and forecasts expressed in this commentary are those of the author and may not necessarily reflect those held by NFP Advisor Services, LLC. The material is for informational purposes only. It represents an assessment of the market environment at a specific point in time and is not intended to be a guarantee of future results. It is not guaranteed by NFP Advisor Services, LLC for accuracy does not purport to be complete and is not intended to be used as a primary basis for investment decisions. It should also not be construed as advice meeting the particular investment needs of any investor. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. The indices mentioned are unmanaged and cannot be directly invested into. Past performance is no guarantee of future results. NFP Advisor Services, LLC does not offer tax or legal advice. Securities and Investment Advisory Services offered through NFP Advisor Services, LLC, member FINRA/SIPC.  NFP Advisor Services, LLC is not affiliated with Gartenhaus Financial.