8 Financial Steps To Take After the Death of a Spouse

Losing a spouse is a heart-wrenching experience, filled with sorrow and uncertainty. Beyond the emotional toll, the aftermath often comes with a whirlwind of financial responsibilities that can feel daunting. Understanding what needs to be done can ease some of that burden. Here’s a guide to help you manage financial matters effectively after such a significant loss.

1. Obtain Multiple Copies of the Death Certificate

Start by obtaining several certified copies of your spouse's death certificate. This document is crucial for closing accounts, filing life insurance claims, and handling estate matters. Financial institutions and agencies usually require it to process your requests, making this a necessary first step.

2. Review Your Spouse’s Financial Accounts

After securing the death certificate, start get your spouse's financial accounts in order. This includes accounts and policies such as:

• Bank accounts: Checking accounts, savings accounts, money markets, etc.

• Investment accounts: Brokerage accounts titled either in your spouse's name or that were being held jointly.

• Retirement accounts: 401(k), 403(b), 457(b), IRA, Roth IRA, etc.

• Insurance: Life insurance, disability insurance, long term care, etc.

  
  

Gather recent statements to gain a comprehensive view of your financial status. Take a look at who the beneficiary was on these accounts (the spouse is not always named). When getting ready to transitioning these assets, this may be an ideal time to consult with a financial advisor and a tax professional for guidance. For example, "cashing out" some of these account may not be in your best interest and may lead to a problematic tax situation.

Also consider contacting your spouse's former employers. There might be insurance policies, retirement accounts, and/or pensions that may have financial value.

3. Notify Financial Institutions

Next, contact banks, credit card companies, and investment firms to inform them of your spouse's passing. You will need to provide a death certificate and may face questions about your identity and relationship. Each financial institution will have there own process, procedures and paperwork. Stay on top of each account to make sure nothing falls through the cracks.

4. Understand Social Security Benefits and Pensions

Investigate potential benefits you may qualify for, such as Social Security survivor benefits. If your spouse worked and earned enough credits, you might be eligible to receive a benefit. If you have dependent children, there may be additional benefits to claim. Contact the Social Security administration to understand your eligibility.

Additionally, review any pension plans; many employers offer survivor benefits that could provide financial support.

5. Update Your Own Financial Accounts and Documents

Once you've taken care of your spouse's accounts, focus on your own financial situation. Update your bank accounts, insurance policies, and investment accounts. If you haven't done so already, organize all financial accounts onto a list and make sure the ownership and beneficiary designations are up to date. Consider consulting with a financial advisor to assist with this process.

This is also the ideal time to reassess your legal documents such as a will, power of attorney, and health care proxies to reflect your current situation. Contact your legal professional for guidance with this process.

6. Consider Estate Matters

If your spouse had a will, begin the probate process by filing it with the court. The probate process can be lengthy. If no will exists, consulting with a legal professional can clarify how assets will be divided according to state laws.

7. Create a Monthly Budget

Reevaluating your budget is critical. With one income gone, you might need to make adjustments to your spending and saving habits. Start by outlining your monthly income alongside fixed expenses to create a realistic budget that works for your new situation. Doing so can provide clarity and reduce financial anxiety.

Planning for short term expenses related to a funeral are a must as well. Funeral costs can be a lot more than expected so be sure to plan accordingly.

If your deceased spouse was the one who primarily handled all things related to finances, do not stress and ask for help if needed.

8. Seek Financial Guidance

Navigating financial matters can be overwhelming alone. Depending upon the matter, consider consulting with a financial advisor, tax professional or estate attorney who can help you understand your options and offer tailored guidance. They can assist you in creating a plan that meets your new financial needs.

At HunterRIDGE Wealth Management, we offer free consultations and guidance about situations just like this. Click the link below to schedule a call so that we can further assess your needs.

Speak With A Financial Advisor Today!

Moving Forward

Losing a spouse poses immense emotional and financial challenges. By taking these practical steps, you can create a roadmap to navigate this difficult time more effectively. Approach each task one at a time and understand that seeking assistance is a sign of resilience. With determination and support, you can rebuild and strengthen your financial future despite the loss of your partner.

HunterRIDGE Wealth Management is Long Island's premier wealth management firm. From growing wealth to planning for retirement, we are with you every step of the way. To learn more about how we work with our clients and our planning process click here. 

For educational purposes only. Not to be relied upon as financial, tax, or legal advice. 

This information was obtained from sources believed to be reliable, we do not guarantee its accuracy, completeness, or fairness. We have relied upon and assumed without independent verification the accuracy of all information available from public sources.