MAKING DECISIONS WITH CONFIDENCE
Grieving the loss of a spouse can be one of the most overwhelming experiences you may ever go through. Regardless of the circumstances under which your loved one passes, nothing can prepare you for the emotions you may feel. To make things even more difficult, you may find yourself facing changes in your financial future that can compound your stress and feelings of uncertainty. Perhaps your spouse was the one who always handled the family’s financial matters and you don’t know where to start. Many people spend years consulting, or relying on, their spouse with financial decisions. Now, without that support system in place, it can be hard to know which way to turn. Or maybe you are the one who always paid the bills and handled the finances but now you need to adjust to your financial plan. Where do you begin?
While you will need patience and time to heal as you adapt new routines after the death of your spouse, here are some important steps to take that will help you to confidently manage your finances and provide stability during this challenging period of transition.
Address Immediate Priorities
It is generally not a good idea to make any major decisions right away, however, some things will need your attention.
- Gather key documents. You will need both original and certified copies of the death certificate. You will also need documents such as birth and marriage certificates, wills, insurance policies, bank account information, and investment statements.
- Maintain financial continuity. Keep up with your current bills. Do you have a list of the account numbers, logins and passwords for online accounts? If you don’t already, you will need to contact the respective institutions so that you will be able to manage the accounts accordingly. These might be bank accounts, utilities, or other recurring charges such as club memberships and subscriptions. Upon review, you may decide that some of these can be canceled.
- Re-title assets. Any assets that were jointly owned with your spouse, such as a house, bank or brokerage account, or an annuity policy, will require you to re-title without your spouse’s name.
- Meet with an attorney. If a will was in place, an attorney can help you to review it and settle the estate properly. Children and former spouses may be involved, as well as personal property and financial assets such as retirement accounts, life insurance and brokerage accounts. Depending on the amount of assets and how the estate was first established, probate may or may not be necessary. Had there not been a will or a trust, an attorney will need to assist you in navigating what could potentially be a more complicated situation.
- Speak to your accountant. There may be a switch in your filing status, and there will be tax implications regarding all the financial changes that are taking place in your life. It can be very helpful to make your accountant aware sooner, rather than waiting until tax time, so that they may help you prepare for appropriate filings and how these may impact you.
Reassess Financial Goals
Take a good look at your current financial standing so that you can make fully informed decisions as you move forward.
- Get a clear understanding of your current situation. What assets do you have? Do you own a home? Is there still a mortgage on it? Will you be receiving life insurance benefits or retirement funds? Social Security benefits? Are you still working? Do you have a steady source of income?
- Consider what debts you may have. Is there credit card debt? Student loans? Do you have dependent children to care for? What are your health insurance needs? What are your monthly expenses like?
- Was your spouse employed at the time of their death? You may be entitled to 401(k) or equity compensation benefits. Surviving spouses of veterans may also be eligible to receive additional benefits.
- Create a new budget. You may want to adjust your spending to accommodate an altered level of income.
Speak With a Financial Advisor
As a widow or widower, your life has changed dramatically. As difficult as it may be, you need to financially plan for your current life and revisit your long-term goals. A financial advisor who takes a holistic planning approach can be the perfect person to turn to for support. They can offer you a caring, unbiased expert opinion that takes into account all aspects of your life, family, health needs, goals, and resources. As they learn about what is important to you, they can develop a customized plan and provide you with the guidance you need.
Losing a spouse brings profound changes to many parts of life. It will be challenging to move forward, but it is important to remember that you can reach out professionals such as an attorney, an accountant, and your financial advisor to help you make informed decisions. If you would like to learn more about how we can help you, please contact us.
