Financial guide for survivors
Organise your finances after a death: where to start, what is urgent, and how to protect your rights
Do not make hasty financial decisions
In the first days and weeks after a death, avoid making major financial decisions (selling property, investments, career changes). Deal with the urgent matters and leave the rest for when you are in a position to decide with clarity.
Urgent (first days)
Bank accounts
- → Joint accounts: Remain accessible to the co-holder, but the bank may limit transactions after notification of death
- → Individual accounts: Are frozen after the death is communicated to the bank
- → Credit/debit cards: Should be cancelled to prevent misuse
- → Direct debits: Check for essential automatic payments (rent, loans)
Urgent payments
- → Mortgage: Check if the loan had life insurance attached
- → Rent: If living in rented accommodation, the contract may be transferred
- → Essential services: Water, electricity, gas – keep active and transfer ownership
- → Funeral: Immediate costs that can be partially covered by the death subsidy
First week
Insurance
- → Life insurance: Report the claim as soon as possible
- → Mortgage insurance: May pay off the outstanding home loan
- → Group insurance: Check if the employer had group insurance
- → Car insurance: Transfer or cancel the policy
Social benefits
- → Subsidio por Morte: 1,611.39 EUR (3 x IAS). Request at Seguranca Social
- → Survivor's pension: 60% of the deceased's pension for the spouse
- → Family benefits: Update household composition
- → Child benefit: Update if the deceased was the holder
First month
Tax obligations
- → Stamp Duty declaration: Deadline of 3 months after death
- → Deceased's IRS: Tax return for the year of death (April-June of the following year)
- → IUC: Transfer or cancel the vehicle circulation tax
- → IMI: Update after division of real estate
Inheritance and division
- → Habilitacao de herdeiros: First step to access the assets
- → Asset inventory: List all the deceased's assets
- → Debts: Check if there are debts – the inheritance can be renounced
- → Property: Begin the property transfer process
The "Death dossier"
Organise all information in one place
Creating an organised dossier with all financial and legal information is essential, both for managing the current situation and for preventing future problems. This dossier should contain:
Personal documents
- → Death certificate (multiple copies)
- → Deceased's Cartao de Cidadao
- → NIF and NISS
- → Marriage certificate
- → Habilitacao de herdeiros
Financial
- → Bank statements
- → Insurance policies
- → Loan contracts
- → Savings certificates (Certificados de Aforro)
- → IRS tax returns
Property and vehicles
- → Property deeds
- → Cadernetas prediais
- → Vehicle documents
- → Rental contracts
- → Utility contracts
Financial checklist
Beware of debts
If you suspect that the deceased's debts exceed their assets, consult a lawyer before accepting the inheritance. In Portugal, it is possible to accept the inheritance "a beneficio de inventario" (with limited liability), limiting your responsibility to the value of the inherited assets. You can also renounce the inheritance entirely.
Financial verification list
First days
- ☐ Notify banks of the death
- ☐ Cancel credit/debit cards
- ☐ Check essential automatic payments
- ☐ Confirm life insurance
- ☐ Check mortgage insurance
First week
- ☐ Request death subsidy (1,611.39 EUR)
- ☐ Report claim to life insurance
- ☐ Contact the deceased's employer
- ☐ Check pension fund
- ☐ Gather financial documents
First month
- ☐ Begin habilitacao de herdeiros
- ☐ Stamp Duty declaration
- ☐ Transfer services (water, electricity, gas)
- ☐ Cancel unnecessary subscriptions
- ☐ Request survivor's pension
First year
- ☐ File the deceased's IRS tax return
- ☐ Complete the inheritance division
- ☐ Update property registrations
- ☐ Update your own will
- ☐ Review your personal financial situation