Do you have a list of all of your automatic payments? If you receive paper bills and then write checks to cover them, there’s no problem. When you die, your heirs can just notify those companies who are sending the bills that you are deceased and they can close the accounts. But if you have payments automatically taken out of your checking account or charged to a credit card every month, your heirs will not find paper bills and may not know who they need to notify.
Even though Richard Palmer, Sr.’s family thought they had closed his bank account after he died, a month later it sprang back to life and started processing incoming charges (this type of account is called a zombie bank account) and electronic payments kept being made….until there was an overdraft of $888,888!
You should make a list of all of the automatic payments that are made on your behalf every month and put a list of those payments with your important papers. That way, your family will know who to contact after you’re gone and they won’t find themselves with a huge overdraft like the family of Richard Palmer, Sr.