Dealing with the passing of a loved one can be overwhelming and extremely difficult. The loss can take a big toll on your emotions, and the stress is compounded by the fact that there are time-consuming tasks that need to be taken care of. And that can be the case even if the person who passed left behind a plan, as it's common for some things to be overlooked during that process.
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When it comes to dealing with the details after losing a loved one, you may think it's wise to prioritize the cancellation of accounts like credit cards, insurance policies or auto-payments. While that can be a good initial step, there are other things you need to cancel as well. Take, for example, identification cards, like driver's licenses. By canceling your loved one's driver's license, you'll help to prevent issues with identity theft, which can be a big problem loved ones face after someone has passed. It's not uncommon for the deceased to be the target of identity theft, and that's the last thing anyone needs to fight back against during bereavement. It is better to close everything out as soon as possible, and here's how you can do that.
You will need to have a copy of the official death certificate as proof in order to cancel a license after your loved one has passed. It can take anywhere from one day to several weeks for a death certificate to be issued, and the time frame will depend on the state and the cause of their death. In general, though, a death must be recorded with the health department within 72 hours and must be recorded with the state within five to seven days.
You generally are not allowed to cancel a loved one's driver's license online. You typically need to go to the DMV in person to get it done. It can benefit you to make an appointment to do so, as you will avoid the long lines that walk-ins typically face. In some areas, you may be required to make an appointment, so be sure to be proactive if you can.
If you are unable to visit the DMV, most states allow you to cancel the driver's license by mail. You will generally need to send:
It may surprise you to find out that even the deceased can be victims of identity theft. Commonly known as "ghosting," scammers search for information about recently dead relatives in a number of ways, including:
The AARP reports that the identities of almost 2.5 million Americans who are deceased are used every year to apply for loans, open credit card accounts and even get utilities or cell phones.
If the accounts are not properly closed and canceled for being fraudulent, the next of kin can be ultimately affected. John Yanchunis, head of Morgan & Morgan's Class Action and Cybersecurity practices, representing For The People, explains, "A spouse of a deceased might be pursued for collection in those states where a spouse is liable for the care and necessities of a spouse. There would be, of course, a defense to any claim because the deceased spouse has been a victim of fraud, but a living spouse might go through a personal hell having to establish that their deceased spouse never took out the alleged loan and that, as a result, the surviving spouse is not responsible."
That is why it is so important to prevent identity theft in the first place by terminating accounts and IDs, even if they seem harmless. An experienced cyberthief or fraudster could do damage if they get hold of someone's sensitive information. Canceling a deceased person's driver's license should be part of the vital process. According to the Virginia DMV, "This simple procedure [of canceling a driver's license] removes the deceased's name from DMV's mailing list. By doing so, you can avoid future mailings and prevent others from possibly using the name for fraudulent purposes."
Now that you have a better idea of how a deceased relative could be compromised, it is important to realize that other items need canceling to ensure that personal information does not get into the wrong hands. The following are a few other vehicle-related items that should also be canceled or transferred. Fortunately, some of the items listed can be done together to save you time.
The car title lists the owner of the vehicle and their home address. You will need to transfer the title to sell the car in the future or if you wish to continue driving the vehicle. You will need to visit the DMV with the death certificate and the original title certificate to transfer the title. You will probably need to fill out and sign the state's version of an affidavit certifying there is no probate before the vehicle title may be transferred legally to you.
Once the car title transfer is complete and the vehicle is in your name, you can register the car. You will need to get car insurance before registering the vehicle and may also need a smog or emissions inspection, depending on the car's age and local laws.
The license plates of a deceased person's vehicle should be turned in with the driver's license, along with a certified or notarized copy of the death certificate and a cover letter. You may return the license plates to the DMV or mail the plates in. Consult with the state's DMV office for the mailing address or further information on how to return the plates.
The DMV also issues handicap placards that can be hung on the rearview mirror to park in disabled spots. If you return the deceased person's driver's license and the vehicle's license plates, you could also send the handicap placard back.
To cancel auto insurance, call the carrier to notify them. They will likely request that you fax or email them a copy of the death certificate before canceling the policy.
A car loan is not forgiven upon death. The balance will have to be settled from the estate's funds. You may be able to take over the lease or loan if you contact the lender with documentation showing you are the beneficiary, although whether it is permissible depends on the lender and state laws.
As mentioned, not all states require someone to cancel a driver's license on behalf of the deceased. Certain states receive notifications of drivers who have passed from their Vital Records Department and process the cancellation automatically. The states below provide additional information about how to terminate a license after death.
McDowell explains why ghosting is a growing issue. "The deceased are potentially easy targets because their names, ages, family members and occasionally other personal details such as the names of their parents are publicly available in obituaries published in papers and online. Not only that, they are no longer monitoring their credit to determine if their identity has been stolen." McDowell advises loved ones to lock a deceased family member's credit file, which can be done by requesting a credit freeze from each of the three credit bureaus.
Yanchunis suggests loved ones avoid putting off the closing of accounts and taking the necessary steps to secure personal information as soon as possible to prevent the extremely stressful and costly process of having to prove fraud.
He also recommends reviewing the information provided by the Identity Theft Resource Center (ITRC), a national nonprofit organization offering free assistance to individuals impacted by identity theft. "They recommend obtaining at least 12 copies of the official death certificates in order to immediately notify relevant credit card companies, banks, financial advisors, etc., determining any outstanding debts and how they will be dealt with, ordering copies of and reviewing the deceased's credit reports and notifying all relevant agencies (Social Security, Veteran's Administration, insurance companies, etc.)."