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Navigating Legal & Financial Challenges After a Loved One’s Suicide

By: Richard Stockton • Edited by: Alyssa Hill • Subject Matter Expert Reviewed by: Sarah-Jane Williams, LL.B(Hons) • 6 cited sources • Updated Oct 29, 2024

Losing a loved one is never easy, but when the loss is due to suicide, the effects on survivors can be devastating. During the initial shock following the suicide of someone close, most people don’t want to deal with legal and financial minutiae. However, these details matter for making the right decisions about the inquest, probate matters, and insurance claims. Addressing them early can ease the financial burden and allow you and your loved ones to grieve in peace, instead of spending years fixing technical matters later on.

Key Takeaways

• Officials conduct a death investigation and verify the cause of death as legal processes begin.
• Managing the deceased’s estate involves probate procedures, settling debts, and distributing assets.
• The impact of suicide on insurance and financial accounts can be tricky to navigate.
• Funeral expenses are typically paid from the estate, but they may fall to family members if funds are insufficient.

What to Expect Following the Suicide of a Loved One

Death Investigation and Coroner’s Inquest

After a suicide, an official investigation is conducted to determine the cause of death. This is done by your county’s medical examiner or coroner^[1]. The investigation will look for signs to confirm the cause of death as suicide and rule out foul play, accidents, and other forms of homicide^[2]. This is crucial because, without an official death certificate, the probate process can’t begin. More specifically, there might be delays in settling the estate and distributing the deceased person’s assets to beneficiaries. Sarah-Jane Williams, an unregistered barrister, adds that you also need the death certificate to arrange a burial or cremation.

Cause of Death Verification and Obtaining a Death Certificate

The cause of death has to be accurately recorded and understood for various legal and public health reasons. The death certificate, issued after the investigation, is necessary for various legal and financial matters related to managing the affairs of a recently deceased person. Various government agencies, financial institutions, and insurance companies also require this document before they can take the necessary steps to:

1. Close out accounts
2. Grant third-party access to privileged information
3. Handle various other tasks that may arise when a loved one passes away

Delays in obtaining the death certificate can result in penalties from some government agencies, such as the Social Security Administration (SSA), for not promptly informing them of the death^[3].

Handling the Deceased’s Estate

Probate Procedures

When a loved one passes away, managing their estate often requires going through a process known as probate^[4]. This is a legal process where the will is validated and an executor is appointed. If there is no will, the probate court appoints an administrator. The executor or administrator takes responsibility for notifying creditors of the deceased, settling unresolved debts from the estate, and distributing assets according to the will or relevant state laws. Bear in mind that this doesn’t create personal liability for the executor, who is working as an administrator for the deceased person’s estate. This process helps ensure all legal and financial obligations are met before the person’s assets are distributed to beneficiaries.

Distributing Assets

Once the initial obligations are satisfied out of the deceased person’s estate, assets are distributed according to their will. If no valid will exists, state laws, known collectively as intestate succession, determine how assets should be divided among surviving family members^[5]. Executors or administrators may need to liquidate some assets to pay off debts or taxes before this distribution. It’s important to consult with an experienced estate lawyer and meticulously follow legal procedures to avoid stressful disputes or time-consuming legal issues.

Settling the Deceased’s Existing Debts and Liabilities

Notifying Creditors

One of the executor’s principal duties is to notify all known creditors of the death. These creditors have a limited time period, usually 3-6 months, to make claims against the estate for any outstanding debts^[6]. Potential debts include personal loans, credit card bills, and unpaid medical expenses. The estate, which acts as the legal representative of the deceased person, is responsible for paying these debts. If the estate lacks sufficient assets to cover the debts, creditors may be paid what’s available in a priority order established by law.

Suicide’s Impact on Insurance and Financial Accounts

Life Insurance

Life insurance policies often have specific clauses regarding suicide. Many policies have a “suicide clause” which may deny a death benefit if the suicide occurs within a certain period (usually two years) after the policy is purchased. You and your lawyer should review the applicable insurance documents to determine exactly what’s covered. Additionally, you’ll want to find out if the insurance policy covers settlements after a person takes their own life.

Retirement Accounts and Investments

Beneficiary designations are a normal part of signing up for accounts like IRAs, 401(k) plans, and brokerage accounts. These beneficiaries are supposed to receive the assets when a person passes away. Beneficiary designations also take precedence over wills. So, it’s important to ensure that beneficiaries are properly notified and all necessary paperwork is filed on time to transfer these assets properly.

Navigating Funeral Expenses for the Deceased

Funeral and burial expenses are typically paid out of the estate. The executor can use estate funds to cover these costs. If the estate lacks sufficient funds, the responsibility for these expenses may fall to the next of kin or other family members. Some life insurance policies also cover funeral costs, but this depends on the policy’s terms, including any applicable suicide clauses.

The Key Legal and Financial Considerations of a Loved One’s Suicide

Navigating the legal and financial challenges following a loved one’s suicide can be daunting. The key points here include:

• Death Investigation and Cause of Death Verification: The first steps are usually an official investigation and obtaining a death certificate.
• Handling the Deceased’s Estate: Probate procedures must be followed to manage the estate, notify creditors, settle debts, and distribute assets according to law.
• Suicide’s Impact on Insurance and Financial Accounts: Life insurance policies and beneficiary designations require careful review.
• Navigating Funeral Expenses: Funeral costs are typically covered by the estate, but if funds are insufficient, they may fall to family members.

Understanding these processes can help you manage the practicalities during this difficult time. And remember, you’re not alone. Don’t hesitate to seek help from attorneys, financial advisors, and support groups to navigate any complex or challenging issues that arise. 

Written by Richard Stockton

Richard Stockton is a science and tech copywriter with nearly two decades of experience. Starting from a background in allied health, he has produced professional white papers and explainer pieces on AI, the mining industry, the latest science news and a range of other challenging topics. Richard is certified in prehospital care and has worked in health care since 2008. As a writer, Richard is able to share his skills with a diverse audience, though he does insist on using the Oxford comma wherever possible, possible, and appropriate.

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Edited by Alyssa Hill

Alyssa Hill is an experienced editor and health writer. She holds an M.A. in journalism from the University of Arizona and is also a certified somatic practitioner. A former content manager for multiple start-ups in the marketing and health/medical industries, Alyssa has extensive experience writing medically accurate and well-researched content, editing articles for clarity and SEO, adhering to strict guidelines, and ensuring all content is up to standards.

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Subject Matter Expert Sarah-Jane Williams, LL.B(Hons)

Sarah-Jane Williams is a seasoned writer with a robust legal background, holding an LL.B (Hons) Bachelor of Laws and a Bar Training Course certification with a 'Very Competent' grade. She was called to the Bar at Lincoln's Inn. Her expertise as a legal SME is complemented by her diverse writing portfolio covering law, senior care, culture, and travel. With over a decade of writing experience, Sarah-Jane's work spans a wide range of subjects from engineering and health to pet care and spiritualism. Her global perspective is enriched by extensive travel and residences across four continents, enhancing her cultural insights and intercultural communication skills. Sarah-Jane's multifaceted background, including roles in housing, research, and advisory capacities, adds depth to her writing, making her a versatile contributor to any niche.