Managing Finances After the Loss of a Spouse
It is likely the last thing on your mind, especially during such a difficult time. But if you lose your spouse, there some necessary tasks you must do after their passing. I completely understand that it is a time for mourning, reflection, and grieving. When you are able to, and possibly with the assistance of a close friend or family member, this article will help you navigate the next financial steps.
Organize Your Current Financial Situation
The first thing you will want to do is get a grasp of your current financial situation. Whether you were the one handling the household finances, your spouse did everything, or did it together, there are likely things you’ll need to find out, review, or organize.
Some immediate concerns include:
How much liquid cash is in your bank account(s)?
Can you continue to pay monthly bills? When are they due?
How much income do you expect to come in?
Can you access all accounts (bank, utilities, mortgage, etc.)?
Depending on your age, previous planning, and preparation, you may have quite a list of “to dos” to access information and assemble the necessary documents. But, organization is a great first step to control and understand your financial status.
You will want to transfer any accounts that must remain open into your own name as soon as you can. This will provide you with the chance to update any necessary contact information - for example, if accounts were under your spouse’s phone number, as well as name.
The Consumer Financial Protection Bureau (CFPB) offers a great step-by-step guide for remembering the long list of responsibilities.
Reach Out to Insurance
Another step you’ll want to take as soon as possible is to reach out to your spouse’s insurance companies. Any life insurance policies should be reachable using the company’s name. Notify them of the death and ask about the next steps.
If your spouse was working at the time of their death, call their employer and ask to speak to HR. You’ll want to find out if any life insurance policies were offered, if there is a 401(k), IRA, or similar retirement plan you’ll need to contact, or any details you should obtain on the spouse’s behalf.
Obtain Death Certificates
As soon as you are able, you will want to obtain a death certificate for your spouse. A healthcare provider or funeral director will likely be able to assist you. You will want to ask for 10 to 15 copies, as most any bills or accounts in the deceased spouse’s name will require a copy.
One of the first calls to make should be to creditors. Credit score tracking companies (Equifax, Experian, and TransUnion) should be contacted to notify them of the death. All accounts in your spouse’s name should be closed, and you may wish to request a credit report from them on your spouse, to be sure all have been handled appropriately.
Prepare for Taxes
Another duty when a spouse is lost is to be sure that you (or your trusted tax accountant) complete taxes for the deceased for that year. Again, this may require you to obtain documentation, so as you review accounts, be sure to make copies of necessary documents.
Ask for Help
This is a difficult time for you, no doubt, and there is so much on your plate. From funeral arrangements, to burial or cremation plans, death sadly comes with a long list of duties for those left behind. Because you will also be grieving, it is a good time to ask for help.
A friend or family member may be able to make calls or obtain documents for you. They can often help you get or stay organized or even offer emotional support as you do so.
The loss of a spouse is also a good time to reach out to a financial advisor. While your mind is still scrambling, we handle these situations often, and know just what to do. I am happy to help you check the items off of your “to do” list, and get your finances in order for you.
Reach out to my office anytime to schedule an appointment.
