The 5 things that most beneficiaries don’t know, but should

One of the most difficult things for beneficiaries is the feeling that with everything they are doing, they are starting from scratch.

Grief experts say that every grief is different—even for the same person. So, even a beneficiary who has lived through the passing of another loved one previously can have a steep learning curve: new financial realities to assess, unfamiliar banks and service providers to deal with, and different wishes to carry out.

Amid this confusion and vulnerability, wise counsel is incredibly valuable. In supporting beneficiaries, it is helpful to be aware of what they are experiencing and the things that matter most for their emotional and financial well-being in the first days and weeks.

1. Grief may make them feel like a different person

The profound changes a person goes through during bereavement are often underestimated and minimized in our culture.

But in in many ways recovering from the loss of a loved one is similar to other huge life events like having a child, Empathy’s Cost of Dying Report shows.

Of the 1,485 Americans surveyed who experienced a recent loss:

• 76% suffered from a change in their sleep patterns. Of that group, half said it lasted for a few months or more.

• 83% experienced anxiety, with 56% of that group suffering from it for a few months or more.

• 33% of bereaved people said they experienced weight gain or loss that lasted more than a few months.

As the saying goes, adversity introduces us to ourselves—but in the early days and weeks after a loss, this can feel painful and confusing. Understanding this beneficiary experience is key to creating a welcoming, supportive organization in which they can place their trust.

2. Locating the will is important—as soon as possible

To many beneficiaries, it may feel unseemly, or downright wrong, to think about money and possessions, when they are in deep grief for their loved one. They may feel ambivalent about starting the process settling their affairs and dealing with inheritance issues.

In addition, they may be exhausted with grief, with little energy to tackle legal and financial tasks.

However, finding their loved one’s will is important to think about in the early days of loss in order to meet important probate deadlines.

Some states require families to file the will in court to initiate probate within weeks of a loved one’s death.

Every state’s probate law is different, so getting a handle on local statutes as soon as possible will keep them from facing consequences, such as lawsuits from heirs who can claim they were financially hurt by the failure to file.

It is easy for beneficiaries to become overwhelmed, so helping them them prioritize the precious time and energy they do have is a valuable service—offering support they won’t likely forget.

3. Their loved one’s debt is not their debt

Calls from aggressive creditors are among the most stressful things families deal with after a loved one dies.

But in almost all cases, unless they have co-signed on a loan or mortgage, for example, surviving family members are not responsible for repaying debt.

Debts are paid out of the estate’s funds, in an order set by each state’s probate laws. If the estate runs out of money, the debt will remain unpaid.

Unscrupulous creditors may make beneficiaries feel responsible, however, and barrage them with demands to pay up.

Reassuring beneficiaries that debts are the estate’s responsibility—not the family’s—can offer profound peace of mind.

4. Taking a lump-sum payment may be harder than they thought

Because of the strain from grief, as well as the responsibilities of settling their loved one's affairs, devising an investment plan may be the last thing they want to deal with.

Probate can feel like a second job for beneficiaries because of the time commitment: 20 hours per week for over a year, on average, Empathy’s Cost of Dying Report showed.

Managing a large sum of money and investing it wisely takes time and attention—precisely the things many beneficiaries do not have. For many families, a payment plan may be the better way to go for their emotional and financial well-being.

Monthly payments can provide peace of mind over a long period of time, whether that is in the form of a specific income payment, a lifetime annuity, a fixed period annuity, or a retained asset account.

And by extending the relationship financially, the beneficiary has the option to take advantage of greater levels of care through their life insurance provider.

5. They may struggle to find trusted advice

In the aftermath of loss, there is a steep learning curve. Whether they’re planning the funeral, deciding on burial or cremation options, or tackling the numerous financial and legal processes that are required to settle a loved one’s estate, beneficiaries are having to learn a lot in a short time.

In addition, they may need to hire professionals like lawyers or accountants to help them, and scrambling to find people upon whom they can rely.

So beneficiaries often find themselves relying heavily on people and organizations they trust. Life insurance providers are a natural choice to turn to in times like this. Their loved one trusted the provider to provide peace of mind—why shouldn’t they?

By serving as a knowledgeable guide to help beneficiaries navigate unfamiliar territory, that trust can deepen even further.