When a spouse dies, no one can fully understand your grief – mainly because everyone has a unique relationship with their spouse.
Some of the things you’re experiencing, other survivors may understand. But your grieving process is unique to you and your relationship.
During this life-changing event, emotions can cloud judgment.
And yet, you’re responsible for handling financial matters after your spouse dies.
The priority is to make sure current expenses are paid.
The last thing you want is to be sitting in a house with no electricity.
List Expenses
Start by listing all your primary bills.
Start with expenses for your home, such as your mortgage, home equity line of credit, utilities, home insurance, lawn care, pest control, etc.
Continue this process for outstanding loans (e.g., auto loans, student loans, etc.) and insurance (e.g., health insurance)
Even if you handled all the household expenses, your spouse may have paid quarterly or annual bills that are essential (e.g., quarterly auto insurance).
You may need to look at bank statements and credit card statements for scheduled payments.
List Income Sources
To make sure you have all income sources listed, reference your most recent Federal tax filing. This information is essential if you have investment income or business income.
If you work with a tax advisor or a Certified Financial Planner™, reach out to these experts to help you sort through which accounts you have immediate access to and which accounts will take time to switch to your name.
You may need to contact your local Social Security Administration office to discuss your options if your spouse received Social Security benefits.
If you have minor children, contact the Social Security Administration to find out about survivor benefits.
If you need more income, find out your options if you take your Social Security benefits early.
Postpone Major Decisions
Of course, day-to-day expenses need to be paid and addressed.
However, major financial decisions can be postponed. These decisions include selling assets, paying off liabilities, changing investments, etc.
Wait at least six months before making these major financial decisions.
If anyone is pressuring you to take action immediately, they may not have your best interest.
If someone will receive money because of your actions, be cautious.
Look out for those who will receive a commission from an immediate sale or even family members who will receive a larger inheritance if you downsize now.
Handling financial matters after your spouse dies is the last thing you may want to think about addressing.
Unfortunately, essential expenses must be paid to keep the lights on in your house.
Rely on your team of experts (tax advisor, estate planning attorney, and Certified Financial Planner™) to help you prioritize financial matters.
You may receive advice from different perspectives, but it will help you make the best decision for your situation.
If you need help, reach out to us for our Moving Beyond Grief guidance.
ABOUT THE AUTHOR:
Niv Persaud, CFP®, CDFA®, RICP®, is a Managing Director at Transition Planning & Guidance, LLC. Life is more than money. It’s about living the lifestyle you want and can afford. For that reason, Niv consults with clients on money, life, and work. Her approach capitalizes on techniques she learned throughout her career, including as a management consultant, executive recruiter, and financial advisor. Her services include developing comprehensive financial plans, divorce financial reviews, and retirement plans. Niv actively gives back to her community through her volunteer efforts. She believes in living life to the fullest by cherishing friendships, enjoying the beauty of nature 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.’”