On Money & More – April 2022

Cutler has long been a supporter of the Boy Scouts. We provide volunteer hours, financial support, and have kids enrolled in the program. And, if there’s one thing that Scouting has taught us, it’s that you should always “Be Prepared.” This has been the Scouts’ motto since the organization was founded and was first used by Sir Baden-Powell in the book Scouting for Boys in 1908. Cutler’s clients look to us to help with preparedness, and one of life’s inevitabilities is the loss of a loved one. Whether a parent or spouse, when you’ve never experienced loss you are unsure what to do or who to call. Often, people call their financial advisor. This is a good place to start.

We can help walk clients through the process and are happy to do so. What should your priorities be? Who are the different parties involved? What are you overlooking? One helpful way to think about what to do is to compartmentalize priorities. We’ve provided some examples below.

The priority is to contact loved ones. Once this is done, you can begin funeral arrangements. This can feel overwhelming for someone who is grieving, so ask friends and family for help. Notify the decedent’s employer, and make sure to inquire about any life insurance policies they may have. If they were a veteran, check with the Veteran’s Administration about any possible benefits including burial benefits.

After these initial plans, you can begin to think about the steps necessary to settle the estate. Two especially important documents are the death certificate and the will. You will need multiple copies of the death certificate (the funeral home or your state’s vital statistics department can help with this). This document will be needed to close out many of the financial accounts. The will names the estate’s executor, who will be responsible for the distribution of assets. The executor may hire an attorney to help with this process, as well as a CPA to file the final tax return. The executor will take the will to probate. Probate is the legal process for closing out the estate according to the directive in the will.

If this laundry list of to-do items seems formidable, that’s ok. We can provide a checklist of items that includes the necessary tasks, all the way down to canceling credit cards. As financial advisors, we can also help walk clients through any monetary impacts such as a “step-up” in cost basis for investments (the process of resetting the cost basis, and thus, reducing the tax impacts from a sale of the assets). We hope that providing an overview of the process, you are a little “more prepared” when that moment unfortunately arrives.

All opinions and data included in this commentary are as of March 11, 2022 and are subject to change without notice. The opinions and views expressed herein are of Cutler Investment Counsel, LLC and are not intended to be a forecast of future events, a guarantee of future results or individual investment advice. Nothing herein should be construed as tax advice. This article is provided for informational purposes only and should not be considered a recommendation or solicitation to purchase or sell securities. This information should not be used as the sole basis to make any investment decision. The statistics have been obtained from sources believed to be reliable, but the accuracy and completeness of this information cannot be guaranteed. Investing involves risk, including the potential loss of principle. Neither Cutler Investment Counsel, LLC nor its information providers are responsible for any damages or losses arising from any use of this information.