guide to managing money after a family loss

8/14/2019 Guide to Managing Money After a Family Loss

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Q U I C K E N L O A N S G U I D E

Managing Your Finances Ater the Loss o a Loved On


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Home Loan U is a ree educational series rom Quicken Loans,

created to help you make the most o your home, and home

fnancing, at every stage o lie.

The Easiest Way to Get a Home Loan


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3 quickenloans.com | 800-979-4922

TABLE OF CONTENTS

Introduction........................................................................................4

Step 1: Manage Funeral and Other Related Expenses ...................................5-6

Step 2: Protect Your Home & Family ................................................... 7-10

Step 3: Protect Your Credit .................................................................. 11

Step 4: Maximize Your Cash Flow .....................................................12-13

Step 5: Establish Your Own Credit Rating ............................................14-15

Step 6: Plan for the Future .................................................................. 16

Never Stop Learning: Count on Quicken Loans for Life ................................. 17

Contacts at a Glance ......................................................................... 18

Quicken Loans Financial Checklist ..................................................19-21

Quicktips........................................................................................ 22
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STEP 1: MANAGE FUNERAL

AND OTHER RELATED EXPENSES

Many families are unprepared when the time comes to make nal arrangementsfor their loved ones. Choosing funeral arrangements can be a difcult and

costly process. The following information is intended to help you consider your

options, so you can make the best choices for your situation.

CONSIDER YOUR OPTIONS:

Covering Funeral CostsThis is an especially vulnerable time for you. The options presented to you may be

numerous and confusing, but it can be easier if you take the following steps whenmaking funeral arrangements:

FIND OUT IF YOURE ELIGIBLE FOR ASSISTANCE WITH FUNERAL COSTS

Contact the Social Security Administration, the Veterans Administration, or yourstates health and human services department. Every little bit can help make funeralarrangements more affordable for you.

SET A BUDGETYour budget should be based on what funds you have available from the above resourc-

es, life insurance or the estate. Prices for caskets and services vary greatly, so donthesitate to shop around. (This is a great opportunity to accept the help of a close

friend or family member.) Viewing, funeral ceremonies and an average casket can cost$5,000 or more, excluding charges for a burial plot and any fees a cleric may charge.

Less expensive options include a graveside-only service or cremation, which can costbetween $1,000 and $2,000. Plus, expect additional expenses, which can includetravel accommodations, child and elder care, attorney fees and catering.

LOOK INTO PAYMENT PLANS

Contact funeral homes in the 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 understandeverything it includes.


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Your Home Equity - A Valuable and Useul Asset

Consider the equity in your home as a possible source of funds for covering some of

these special expenses. If this makes sense in your situation, a Quicken Loans homeloan 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, youcan cover some of these bills when the payment comes. If you pay any out of your own

pocket, be sure to keep all receipts and, if possible, get reimbursed from the estate.

Remember, lost income is another nancial factor. Because your loved one will nolonger receive a paycheck or social security payments, your total nancial picture maychange. Also, depending on your own employers policy, you may lose income shouldyou take an extended leave at this time.

Protect Yoursel rom ScamsSadly, survivors are sometimes preyed upon by con artists. They obtain names fromobituaries 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, contactthe creditors to ask for a more detailed explanation of the charges.

Because your loved one will no longer receive

a paycheck or social security payments, your

total nancial picture may change.


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Its understandable in a time of grief to want to put aside the nancial

attention your home demands. Again, this is a good opportunity to accept the

help of close friends or family. Its important to protect your home and family

right now.

Obtain Copies o the Death CertifcateYou will need about 10 original copies of the death certicate to manage most of yourloved ones nancial affairs. If you are the next of kin or estate executor, you can get

the death certicate from the courthouse, either in person or by mail.

Find Financial Records

Locate all bills and nancial records. If this is difcult, try to locate payment stubsor a check register to get started. Last years tax return is another good place to ndinformation regarding bank accounts, retirement accounts and other assets. Call thecompanies whose names appear on the return.

STEP 2: PROTECT YOUR HOME & FAMILY

Locate all bills and nancial records. If this

is difcult, try to locate payment stubs or

a check register to get started.

TAKE THE FOLLOWING STEPS:


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Make a List o Your Bills

Its a good idea to make a list of company names, what is owed, and when. Weveincluded a checklist at the end of this guide to help you get started and keep track of

your progress.

Accounts to consider include:

Credit cards Utilities

Bank accounts Mortgage Home equity loans Auto loans Joint accounts

Consult your tax advisor regarding existing joint accounts, and how to proceed. This

could protect you against complications in your credit score, or even from fraud (seeGuard Against Identity Theft in Step 3: Protect Your Credit).

Know Which Debts Are Yours

Unfortunately, when people are grieving, they sometimes accidentally pay bills theydont actually owe. Thats why you should have as much information as possibleto protect yourself. Its best to go over all of your loved ones debts with a trusted

nancial advisor, to nd out which debts you are responsible for repaying.

THE TOOLS YOU NEED

Quizzle.com can be a powerful online tool to help you sort out your home nances

And, Quizzle does it all without ever asking for your social security number. There,

youll get everything you need, including a personalized budget and advice to help

manage your nances in the future.
https://www.quickenloans.com/http://www.quizzle.com/http://www.quizzle.com/https://www.quickenloans.com/


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Manage Lie 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 and nd out about any funds to which you may beentitled.

Plan carefully for managing any funds you receive. One decision you might face: should you

pay off your existing mortgage or keep the money in more 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 nancial planner to avoid making choices that could prove costly. Many people

nd a nancial planner through a referral from a friend or family member. However, if youprefer to nd your own nancial planner and need assistance, contact the Financial Planning

Association by visitingfpanet.orgor by calling 800-322-4237.

Find Out I You Owe Estate Taxes

Many people do not have to pay estate taxes, but this is something only your tax advisor

can tell you

Consult with Experts

Life insurance benets, investments, retirement accounts and income from the sale of yourhome can have major tax, estate and investment consequences. Consult an expert who canhelp you avoid making rash, and potentially costly, choices. Again, contact the Financial

Planning Association by visiting fpanet.org or by calling 800-322-4237.

Mortgage and credit issues require special nancial expertise. Quicken Loans home loanexperts have experience, knowledge and over 100 mortgage programs to t your individualsituation and help you successfully handle these difcult issues.
https://www.quickenloans.com/http://www.fpanet.org/http://www.fpanet.org/http://www.fpanet.org/http://www.fpanet.org/http://www.fpanet.org/http://www.fpanet.org/https://www.quickenloans.com/


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Pay Your Bills

Your mortgage payment is most likely the last detail 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. The important step to take is to contactyour mortgage company to let them know the situation. If you are 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

nd yourself with limited resources, certain bills take priority. Heres a list of criticalbills you may want to consider paying rst to protect your familys nancial future.Feel free to use the checklist at the end of this guide to keep track of your progress.

These Bills Usually Need Immediate Attention

Mortgage or rent, real estate taxes and insurance.

If you are remiss in paying these debts, your life could get out of control veryquickly. NOTE: Consider renancing your mortgage to lower your monthly payments.A Quicken Loans home loan expert can show you loan programs that can better suityour budget.

Health insurance Essential utilities Credit cards Car loans or leases

Income taxes

Pay any taxes you owe that are not automatically deducted from your paycheck.

Always le a Federal income tax return, even if you cannot afford to pay the balanceyou owe. Consult your tax advisor on these matters, and whether you should le asHead of Household.

You may be able to put the following payments on hold while your nances settle.Discuss these bills with your nancial advisor:

Student loans Attorney, doctor and hospital bills Debts for which you have a legal reason for non-payment

For more information, visit lawhelp.org. Select your states name to be directed tofree legal information and referrals.
https://www.quickenloans.com/http://www.lawhelp.org/http://www.lawhelp.org/https://www.quickenloans.com/


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STEP 3: PROTECT YOUR CREDIT

Your credit rating is vital to your ability to make almost any signicant nancial

transaction. Landlords, mortgage lenders, banks, insurance companies and

employers rely on your credit records to determine whether or not to do

business with you.

THE FOLLOWING AREAS ARE OF PARTICULAR IMPORTANCE:

Credit Cards and Bills

You might consider converting joint accounts to your name only. To protect your credit

rating, make sure to pay any bills for which you are responsible on time, using the

guidelines weve listed for you under Protect Your Home.

Your Home

Protecting your status as a homeowner in this particularly vulnerable time is critical to

your overall credit score. To make sure yours is secure, youll need to know:

Whose name is on the title/deed of the home contact your county assessors ofce. Who is the lender on the mortgagelook on mortgage documents or payment coupons.

Consult your nancial advisor about jointly held property. You may want to get themortgage changed to your name only, or even renance the mortgage to obtain needed

funds. Quicken Loans can help you with that.

I Bills Were Not in Your Name

If your loved one had most or all of the bills in his or her name only, you will need toestablish your own credit. Find out how in Step 5: Establish Your Own Credit Rating.

Visit Quizzle.com, the online tool from Quicken loans

that helps you manage your home and home nances.

Youll get a free copy of your credit report and the tips

you need to avoid fraud.

MONITOR YOUR CREDIT REPORT


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STEP 4: MAXIMIZE YOUR CASH FLOW

The death of a loved one can signicantly change your nancial status,especially if your loved one was employed and his or her earnings contributed

to the household nances.

CONSIDER THE FOLLOWING:

Create a Budget

Many people nd it useful to make a list of monthly expenses and compare it to theiradjusted monthly income. To get started, youll need to track all of your income and

expenses for a month. Make sure to include all purchaseseven the small ones. Writethem down in a notebook or keep the receipts. Make a list of categories, and includehow much you spend in each category for the month. Dont forget to include moneythat you save each month to help you meet your future goals. Be realistic about yourbudget, so that its easy for you to follow. When you add up all the expenses and

compare the total to your income, youll be able to see what next steps you shouldtake.Or, as we mentioned, Quizzle.com can be a helpful tool when budgets and bills

seem overwhelming. There, Quizzle will create a budget for you, help monitor yourcredit report and make sure youre in the best mortgage program for your situation.

And, youll get all of your personalized information for free, without ever enteringyour social security number.

Reduce Expenses

You might need to reduce or eliminate expenses if there is a change in the household

income. Look at various strategies, from small (turning off lights in unused rooms,for example) to major changes (switching to a more economical car). You might be

surprised at how much you can save by taking even the smallest steps.

Guard Against Identity Thet

Unfortunately, changing accounts can make you vulnerable to identity theft. Whensomeone has access to your Social Security number, credit card numbers and otherinformation, he or she can make unauthorized charges, obtain accounts or loans in yourname, or commit tax fraud.

Quicken Loans offers a guide that teaches you how to protect your identity and yourcredit. Download the Home Loan U Guide to Protecting Your Identity or call us at

800-979-4922 for your free copy.
https://www.quickenloans.com/http://www.quizzle.com/http://www.quickenloans.com/common/pdf/ql-privacy-guide.pdfhttp://www.quickenloans.com/common/pdf/ql-privacy-guide.pdfhttp://www.quizzle.com/https://www.quickenloans.com/


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STEP 5: ESTABLISH YOUR OWN

CREDIT RATING

Establishing your own credit rating is a positive step toward achieving nancialstability. If your loved one had most or all of the bills in his or her name only,

this is something you may want to consider as soon as possible.

HERES HO W:

1. Find Out Your Credit Score

A key step to securing a nancial future is to nd out your credit score, the three-digitnumber lenders use to gauge your credit worthiness. To nd yours, go to Quizzle.com.

Your free credit score and tips to improve it will be generated in momentsand yourscore and report will be there for you to monitor thereafter. Clear up any inaccuracies

by contacting Experian at 888-397-3742.

For complete information about your credit score and what it means to your nancial

health, download the Home Loan U Guide to Managing Your Credit.

Go to Quizzle.com for your free credit re-

port. Your credit score and tips to improve it

only takes a moment to generate plus, youll

never have to give out your social security

number.
https://www.quickenloans.com/http://www.quizzle.com/https://www.quickenloans.com/education/guide/credit-score.pdfhttp://www.quizzle.com/http://www.quizzle.com/https://www.quickenloans.com/education/guide/credit-score.pdfhttp://www.quizzle.com/https://www.quickenloans.com/


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2. Repair Your Credit Score, I Necessary

If your credit score is not what youd like it to be, there are many ways you canrepair your credit. Here are some basic things you can do:

Pay your bills on time Pay off debt, rather than moving it from credit card to credit card Dont open accounts you dont need

Dont max out your credit cards

3. Build Your Credit Score

If you have yet to establish credit in your own name, begin building a credit score ofyour own. Here are a few ways you could start building your credit:

Open checking and savings accounts in your name.

Apply for a credit card. You only need one or two, from a gas company and a depart-

ment store, for example. Then make small purchases regularly and always pay billson time.

A year or so after you have made faithful payments on a credit card, apply for an

installment loan (an auto loan, personal loan or mortgage, for example).

You can nd more information about credit scores in the Home Loan U Guide toManaging Your Credit.

You can nd information on

repairing your credit in theHome Loan U Guide to Managing Your Credit.
https://www.quickenloans.com/https://www.quickenloans.com/home-buying/learn/credit/how-to-improve-your-credit-scorehttps://www.quickenloans.com/education/guide/credit-score.pdfhttps://www.quickenloans.com/education/guide/credit-score.pdfhttps://www.quickenloans.com/education/guide/credit-score.pdfhttps://www.quickenloans.com/education/guide/credit-score.pdfhttps://www.quickenloans.com/education/guide/credit-score.pdfhttps://www.quickenloans.com/education/guide/credit-score.pdfhttps://www.quickenloans.com/home-buying/learn/credit/how-to-improve-your-credit-scorehttps://www.quickenloans.com/


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STEP 6: PLAN FOR THE FUTURE

When faced with the death of a loved one, planning for the future is prob-ably not on your mind. Take some time. When you feel the time is right, take a

longer-term view of your situation to ensure a solid nancial future. At Quicken

Loans, we want to help you have the nancial resources you need to move for-

ward.

AT THIS TIME, YOU MAY WANT TO :

Dene your nancial goals.

Create a new nancial plan for your needs. For help making a nancial plan,

contact the Financial Planning Association by visiting fpanet.org, or call them at

800-322-4237.

Explore your career or job options, including retirement.

Re-examine your investments.

Create an estate plan for yourself.

Consider personal nancial software to streamline banking, investing, taxes, nancialplanning, budgeting and more. Quicken has a range of personal nancial softwareproducts, with different levels for different needs. Get more information from Intuitby visiting their website at quicken.com.

2000-2007 Quicken Loans Inc. All rights reserved. Lending services provided by Quicken Loans Inc., a subsidiary ofRock Holdings Inc. Quicken Loans is a registered service mark of Intuit, Inc., used under license. Intuit, Quicken,and Turbo Tax are the registered trademarks of Intuit, Inc.
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NEVER STOP LEARNING:

COUNT ON QUICKEN LOANS FOR LIFE

The Easiest Way to Get a Home Loan

Your Quicken Loans home loan expert is not only here to help you manage your

home nancing today, but will also help you to achieve your long-term goals.

After all, life changes, and your mortgage should change with it.

As a service to our clients, we will keep you informed of industry trends and

new home nancing options long after your closing. Were always tracking

current mortgage rates and well alert you if the market ever moves to benet

you in any way.

Any time you have questions regarding home nancing, we encourage you to

contact your home loan expert. Quicken Loans will continue to give you the

service you deserve for the life of your loan.

A referral is the best compliment. If you had a great experience with Quicken

Loans, tell someone you know. We can proudly say that 9 out of 10 clients would

refer us to their friends and family. Wed be glad if you would, too.

As an additional benet, check out Quizzle.com, a new homeand money site from Quicken Loans. Quizzle is the only place

that gives you a simple understanding of your home and your

money, all in one spot. Youll get a free credit report andscore, home value estimation, mortgage recommendations,budget tool and so much more! Well also hook you up withimportant tips on how to make the most of your home and

money minus the confusing nancial jargon.


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CONTACTS AT A GLANCE

The following is a list of the resources included in this guide:

LEGAL HELP

The American Bar Association

800-285-2221 abanet.org

Click on Public Resources and then Lawyer Referral Services

lawhelp.org

ndlegalhelp.org

CREDIT BUREAUS AND INFORMATION

Equifax

equifax.com 800-685-1111

Experian

experian.com 888-397-3742

TransUnion

transunion.com 877-322-8228

FINANCIAL PLANNERS

Financial Planning Associationfpanet.org 800-322-4237

QUICKEN LOANS

quickenloans.com

quizzle.com

Home Loan U Guide to Protecting Your Identity

Home Loan U Guide to Managing Your Credit
https://www.quickenloans.com/http://www.abanet.org/http://www.lawhelp.org/http://www.findlegalhelp.org/http://www.equifax.com/http://www.experian.com/http://www.transunion.com/http://www.fpanet.org/http://www.quickenloans.com/http://www.quizzle.com/https://www.quickenloans.com/education/guide/ql-privacy-guide.pdfhttps://www.quickenloans.com/education/guide/credit-score.pdfhttps://www.quickenloans.com/education/guide/credit-score.pdfhttps://www.quickenloans.com/education/guide/ql-privacy-guide.pdfhttp://www.quizzle.com/http://www.quickenloans.com/http://www.fpanet.org/http://www.transunion.com/http://www.experian.com/http://www.equifax.com/http://www.findlegalhelp.org/http://www.lawhelp.org/http://www.abanet.org/https://www.quickenloans.com/


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UTILITIES CONTINUED

Long Distance Carrier Phone

Status

Cell Carrier Phone

Status

Cable Carrier Phone

Status

Water Company Phone

Status

Garbage Phone

Status

INSURANCE

Life Insurance Phone

Status

Health Insurance Phone

Status

Auto Insurance Phone

Status

BANK(S)

Savings Phone

Status


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MORTGAGE LENDER

Phone

Status

HOME EQUITY LENDER

Phone

Status

AUTO LOAN LENDER

Phone

Status

LOVED ONES EMPLOYERS HUMAN RESOURCES MANAGER

Name Phone

Status

PENSION PLAN HOLDER

Phone

Status

401(k), STOCKS, INVESTMENTS

Phone

Status

BANK(S) CONTINUED

Checking Phone

Status

CDs, Money Markets Phone

Status


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DO: Give your emotions time to settle down before making major nancial decisions.Some experts recommend waiting a full year.

DONT: Sell your home or change jobs right away.

DO: Take control of paying your bills right away in order to establish and maintain

your

good credit.

DO: Find alternate sources of income for paying off your debt, like renancing yourmortgage.

DO: Ask for help from experienced legal and nancial experts to keep your nancesmanageable while preserving your credit standing.

QUICKTIPS:

guide to managing money after a family loss

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