Key Takeaways
- Discuss essential topics with your spouse to prepare for the possibility of outliving them.
- Know your professional contacts, including your estate planning attorney and financial advisors.
- Understand your financial accounts and ensure the correct titles for authorized access.
- Keep a master list of assets and liabilities to know your financial standing.
- Be aware of health insurance options if your coverage comes from your spouse’s employer.
Estimated reading time: 4 minutes
As you age, there’s a risk you may outlive your spouse.
It’s a situation you may not want to think about, but it’s important to discuss with your spouse before something happens.
While life expectancy for men and women has increased over the years, there are uncontrollable events and hereditary health issues that may cause your spouse to die before you.
Do you know what to do if your spouse dies before you?
Here are five items to discuss with your spouse before something happens.
1- Professional Contacts
If you become a surviving spouse, you’ll need a team of qualified experts to guide you through decisions.
While family and friends may have good intentions, they may not know your legal documents and financial situation.
You’ll need to know the name and contact information for your estate planning attorney, tax advisor, and Certified Financial Planner®.
Make time to meet these individuals, and stay present during review meetings.
2- Financial Accounts
One of the first things you’ll need to do as a surviving spouse is to contact all financial institutions that hold your assets.
These assets could be in checking, savings, money market, and/or brokerage accounts.
This step is important to ensure you have access to money to pay bills.
Verify with your spouse that the accounts are correctly titled to give you authorization.
Most financial institutions have their own Power of Attorney documents.
Also, some accounts should be titled “Transfer on Death” or “Joint Tenants With Right of Survivorship.”
3- Important Documents
Know where to find all important documents such as your spouse’s Will, Trust, other estate planning documents, and life insurance policies.
Also, take time to understand what these documents mean.
For example, identify the assets held in the Trust and the person serving as Trustee.
For each life insurance policy, know who to contact and how the beneficiary is paid.
4- Assets and Liabilities
Keep a master list of all assets and liabilities, including their value and the name on the asset/liability.
If something happens to your spouse, know who to contact for each one.
Assets include personal property, financial accounts, real estate, vehicles, stock options, business interests, cash value of life insurance policies, retirement accounts, and any other item with value.
Discuss what will happen to these assets if you become a surviving spouse, especially if your spouse owns a business or was previously married.
For liabilities, include mortgages, lines of credit, credit card debt, vehicle loans, back taxes, and any other type of loan.
Also, include regular financial obligations such as household expenses and club memberships.
Discuss the amount of outstanding balance and when payments are due.
Having this information current and easily accessible will help you know what you own and what you owe.
5- Health Insurance
If your health insurance is from your spouse’s employer, know your options if you become a surviving spouse.
These changes may affect your premium payments, deductibles, and out-of-pocket expenses.
Check your medical, dental, vision, and long-term care insurance policies.
If you’ve been involved with your household finances, you may be aware of some of this information.
If you haven’t been involved, become involved.
It may be confusing the first time you review this information.
But over time, you’ll feel more comfortable with it.
(Update to original post from March 10, 2020)
ABOUT THE AUTHOR:
Niv Persaud, CFP®, is the Founder of Transition Planning & Guidance, LLC (TransitionPG®). She believes life is more than accumulating money – it’s about living the lifestyle you envision and can afford. Niv incorporates all aspects of life when discussing money. She developed the 5 P’s of Life (Personal Relationships, Personal Finance, Profession, Peace of Mind, and Physical Health) to help clients define what they want from life. Once she understands their vision, she helps them achieve their lifestyle or adjust their expectations based on their finances. Niv actively gives back to the community through her volunteer efforts. She believes in living life to the fullest by cherishing friendships, exploring the world, and laughing often—even at herself. Her favorite quote is by Erma Bombeck, “When I stand before God at the end of my life, I would hope that I would not have a single bit of talent left and could say ‘I used everything you gave me.’” Click HERE to read where she’s been quoted in the media.
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