Benefits that are available

With the death of a loved one comes the realization that there are important family matters to be settled…. and many business, legal and financial decisions to be made.  Often, the person who must take charge is the one who is least prepared to do so.

To assist the widowed and any other persons who care are called upon to help settle the estate of a deceased relative or friend, we have prepared this guide to help you deal with the responsibilities that fall to you following the death of loved one.

The following is only a general guide in which may or may not apply in your specific circumstances. 

Assemble Important Papers

Collect all of the deceased’s…
 Wills, recent copies of Income Tax Returns;
 Life Insurance, disability insurance and all general insurance policies;
 All recent contacts;
 Marriage, birth and death certificates;
 Military papers, automobile registration and insurance forms; and
 All recent contracts

It is almost always necessary to have a witness present when opening a Safety Deposit Box. Make a list of the contents of any Safety Deposit Box.

Official death certificates and copies of birth and marriage certificates may be necessary before claims can be made for life insurance proceeds or for benefits from business and government agencies.  An application for these certificates may be obtained from the funeral home.

Do not discard any official looking document, even if it appears to have been terminated, without checking first with a lawyer or the organization concerned.  Income tax returns must be held for five years.  Life insurance policies, even though premiums have not been paid for a number of years, may still be in force through an automatic agreement stated in the policy.
Keep all important papers in a handy file, such as the white envelope in which this information came.

Settlement Options

The amount of life insurance in an estate is often more money than most persons are accustomed to handling at one time.  It is important to remember that the life insurance proceeds may be received in a number of ways and that income may be more important than a lump sum.

Following are the settlement options:
 Interest only
 The principal remains with the insurance company and interest is paid periodically.
 Provisions can be made for withdrawal of money at any time.
 Life income or annuity
 The company will pay a stipulated amount of money on set dates for the lifetime of beneficiary.
 Fixed installments
 Proceeds are paid according to the needs of the beneficiary in an agreed amount over and agreed period of time.

 Round up Bills

Some loan, service contracts and credit cards accounts are life insured and paid up automatically when the client dies.  Check with all companies where the deceased had accounts payable. Many bills must be paid on the due date.  Review cancelled cheques over the past several months to determine whether or not a bill has been paid. Beware of any UNETHICAL door-to-door salespersons at this time; especially representing themselves as delivering or collecting for something authorized by the deceased.  The police suggest that someone be asked to watch the home of the deceased during the funeral to prevent theft by persons who may be using the obituary notices to select homes to rob. Make sure all credit cards are cancelled and returned to the financial institution concerned.

Probate

Probate is a procedure to obtain Court approval that the Will is officially recognized as the deceased ‘s last Will and Testament and that the named executor is the proper legal representative of the estate.  If the Will has to be probated a lawyer can explain the various steps that are taken.  If probate is necessary, the following will be required:

The original of the Will
 Names and addresses of all beneficiaries;
 Location of all assets including bank accounts, stocks, bonds debentures, mortgages, lands (including copies of the titles if available), any valuable personal household effects, automobiles and any other property;
 Place and date of filing last income tax return; and
 Birth and marriage certificates of the surviving spouse.

Joint bank accounts may be changed into the name of the surviving spouse prior to probate being granted, by the presentation to the bank of a death certificate – a notarized copy or even a photocopy may suffice – it does not have to be an original death certificate.

Title to property owned in joint tenancy may be transferred into name of the surviving spouse prior to probate being granted, by presentation to the Land Titles Office of an original death certificate. A prescribed form must be filled out and a small fee paid.

We know families often have many questions about the cost of funerals and other options surrounding
the funeral service.  At Park Place Funeral Home, we offer a range of choices to ensure you have the type of funeral memorial service you wish. The final cost is entirely your decision.

What financial decisions need to be made after a death occurs?
 The days after a funeral can sometimes be the most difficult. The tasks surrounding the many financial decisions that now need to be made can seem overwhelming.
These financial matters should be settled fairly soon after a death. Financial advisors, accountants or lawyers can also be contacted for more information on any of these subjects.
 Make a complete record of all important business and personal documents, listing where each original document can be found
 Contact the agent listed on the deceased’s original life insurance policy
 Notify all financial institutions of the death – banks, insurance companies and financial investment brokers
 If you have a joint account, consider keeping it open for a few months, to allow the spouse the option of continuing to deposit cheques in the deceased’s name
 If accounts are not joint, funds may be frozen until the estate is settled, so investigate whether you need to draw on other investments temporarily
  Arrange for payment of any outstanding balances on credit cards or loans
 Real estate held jointly by a husband and wife is transferable to the surviving spouse – the service of a lawyer is advisable
 Check if you are eligible for death benefits payments or pensions – failure to apply could result in lost payments (see other questions on this site, or contact Park Place Funeral Home. for information on benefits available.)
 Make sure you file an individual tax return for the deceased, according to requirements of Revenue Canada
 Cancellation of GST refund cheques is required if a deceased person has been receiving cheques up to the time of death, to cancel, either return the next check with a note saying the person is deceased, or mail a "Funeral Director’s Statement of Death" along with the deceased’s social insurance number to:

Revenue Canada, P.O. Box 14001, Station Main, Winnipeg, Manitoba R3R 3M2

What benefits are available to cover funeral expenses if I am a veteran?
  If you are a veteran who served with the Allied Forces during World War I, World War II, or the Korean Conflict, the Department of Veteran’s  Affairs may cover expenses for basic funeral services (burial or cremation) and a monument.
 Items such as an organist, service folders or flowers are not covered, and some restrictions apply regarding the burial site or cemetery location. Families may upgrade the service or type of casket at their own expense.
To be eligible, applicants must meet the following requirements:
 Eligibility is calculated using both the veteran and spouse’s assets after funeral expenses, excluding the value of the house and one automobile.
 The total value of the veteran’s estate must not exceed $12,015 for a married veteran, plus $2,060 for each dependent child
 A veteran who is widowed, divorced or separated is treated as a single person and is eligible to an estate maximum of $5,000
Similar financial assistance is offered to deceased members of the National Defense of Canada to cover funeral expenses and a casket, to a maximum of $3,675. An additional amount is available if the burial takes place at a different location from the place of death.

Are funeral expenses covered by Canada Pension Plan (CPP)?
 For families of contributors to the Canada Pension Plan (CPP) there are two kinds of financial assistance available:

Death benefits to cover funeral expenses
A one-time death benefits payment is paid to the deceased’s estate, up to a maximum of $2,500 (depending on the length of time contributions to CPP have been made).

Monthly pension for survivors
Surviving spouses and dependent children may receive a pension if the deceased contributed to CPP for three consecutive years or more (some restrictions apply). For those who qualify, surviving spouses may receive benefits for the month after the contributor’s death for:
 A maximum pension of up to $446.87 per month (depending on age, and whether they receive other pensions, plus the length of time contributions were made)
 Up to $169.80 per month for each dependent child (a dependent child is defined as being under 18 years of age, or between 18 and 25 in full-time attendance at school, college or university)
These benefits are paid only to those who apply – failure to apply within a year of the death will result in lost benefits. Applications may be made to Health and Welfare Canada, Income Security Program.

Call 1-800-277-9914.
Human Resources Development Canada
Income Security Programs, Box 2710 Main Station, Edmonton, Alberta   T5J 4C2

What kind of government assistance is available for funeral expenses?
In the province of Alberta, Canada no one is denied the dignity of a funeral. The following are some of the government programs available to families in difficult financial situations:

Alberta Human Resources (Family and Social Services) Assistance
If a family is unable to pay the government department of Alberta Human Resources can provide assistance for basic funeral services, a casket, and cemetery or cremation fees. This assistance is available to those not eligible for Canada Pension Plan (CPP) benefits, and in most cases is offered to persons already receiving assistance from Alberta Human Resources. Assistance may also be offered to persons who are under the Assured Income for Severely Handicapped (AISH) program. This assistance may only be used if applied for and approved by Alberta Human Resources prior to the funeral.

Alberta Widow’s Pension
Assistance is available to low-income widows and widowers between 55 and 64 years living in Alberta through Alberta Human Resources. You must apply to receive Widow’s Pension benefits and it’s recommended you apply as soon as possible after the death has occurred. To qualify, the widowed person must:
 Have a yearly income below $12,000
 Be a non-sponsored immigrant, or
 Born in Canada, or
 Has been a resident of Canada for 10 years or more.
For further information on either of these programs,
contact Alberta Human Resources at 1-800-642-3853.

What is covered by insurance policies of Worker’s Compensation?
 A deceased’s regular life insurance policy may have been designed to help cover the cost of funeral. After a death has occurred, it’s best to apply right away, as it can take several weeks or months for funds to arrive. The company may request a copy of the Funeral Director’s Statement of Death, and will likely also need an original copy of the policy to settle the claim so final payment can be issued.
The Worker’s Compensation Board may also provide financial assistance for funerals when a work-related death occurs. Certain criteria must be met, but potentially the Board will pay up to $1,300 for costs resulting from the work-related death, and up to $8,150 for burial, cremation, funeral or memorial services for the worker. If transportation of the deceased is required, additional funds may also be available.
Survivor’s benefits may also be available through the Worker’s Compensation Board to a monthly maximum of $2,459.64 for a spouse and $191.00 for a dependent child. Alberta residents can call the Worker’s Compensation Board in Edmonton for more information at (780) 498-3800.
Are benefits available from my company or union? If the deceased was currently employed, benefits may be available from their employer or union, as some group plans have provisions for surviving spouses and dependent children. As well, some benefits may continue after retirement.

Special consideration for members of a Credit Union
A Credit Union member may be entitled to a benefit for money on deposit in a shared account. Monies are paid out by an insurance company and not by the Credit Union – check with each Credit Union Company for details of their plan.

Is compensation available for death caused by a motor vehicle accident?
Everyone with Alberta insurance coverage has the following benefits in the event of a death due to a motor vehicle accident:
 $10,000 cash (available immediately) for the head of the household or spouse, or to the parents if the deceased is underage. Multiplied by a factor for the number of family survivors
 $1,000 to $3,000 for each dependent child of the deceased depending on the age
 $2,000 towards funeral expenses
For these benefits, the next of kin must apply to their own insurance company, who will pay benefits. If another insurance company is responsible for payment, they will reimburse your insurance company at a later date (after settlement of the details of the accident).
CAUTION: the description of these benefits is simplified, as the numerous conditions could not be published here. Please check with your insurance company for full details.

What is Victims of Crime Financial Benefits (Crimes Compensation) in Alberta :Help is available for victims of violent crimes in Alberta.
The Victims of Crime Financial Benefits (Crimes Compensation Board)
 (10365 – 97 Street, 10th Floor, Edmonton, Alberta T5J 3W7, Telephone (780) 427-7217)
established by the Province of Alberta, can pay for most expenses that result directly from violent crimes.
 To be eligible, a person must suffer some direct personal injury as a result of a violent crime such as assault, murder, criminal negligence, manslaughter, arson, rape and others. The dependents of anyone killed in these circumstances may apply for a lump sum payment which is paid directly to the family as a death benefit for use as they see fit. A maximum benefit of $12,500 may be received, based on the decision of the Director.

Which airlines offer compassionate airfare?
Compassionate airfare is available through many airlines. It can be a deferral of payment or discounts for immediate family requiring a flight to attend a funeral (the definition of "immediate family" varies for each airline, so it is best to check ahead of time).
The airline may ask for information about the deceased (including the Funeral Director’s Statement of Death) and the name and phone number of the funeral home. Information may be taken verbally and a discount given at the time of flight, while sometimes the full fare must be paid and a refund applied for after the funeral service.
The following are the types of compassionate airfare arrangements available (changes may occur, so check with the airline for a list of who qualifies, and procedures for applying for the discount before you book your flight):
 Air Canada, North West Territories Air, Air BC, Canadian Airlines, and Delta Airlines all discount 50% from the full price of a return ticket for travel within Canada and the United States only. (In some cases, only Economy Class fares are eligible.)
 United Airlines and American Airlines also offer a discount, but the reduction in fare depends on the destination.
 KLM Royal Dutch Airlines and Lufthansa have compassionate airfare policies, but there are restrictions on point of departure and destination.
 WestJet Airlines does not offer compassionate airfare benefits.