Losing a loved one, especially a spouse, is an extremely difficult experience. During such an emotional time it can seem overwhelming or outright impossible to think about finances. However, as the surviving spouse, it’s important to consider financial obligations and take necessary steps to safeguard your financial future.
Here are some recommendations to help provide a sense of order and direction during this challenging time:
Here are some recommendations to help provide a sense of order and direction during this challenging time:
- Obtain copies of your spouse’s death certificate. When someone dies, a death certificate is completed and filed, typically by a medical official (usually a physician, coroner, or medical examiner) and a funeral director. Once your spouse’s death certificate is filed, one of the first things you should do is get certified copies of it. The more copies you can get, the better. You’ll need to provide them to everyone from creditors and insurance providers to government agencies and financial institutions as proof of the death. Check with your local or state vital records office to learn the process for obtaining these copies.
- Seek out the help of a financial advisor and/or lawyer. Financial experts and legal counsel can offer valuable guidance regarding taxes, investments, and other financial concerns after the death of a spouse. If you don’t know who to turn to, ask your friends or family for recommendations.
- Don’t rush to make any major financial decisions. A good rule of thumb is to wait at least six months before making any significant financial decisions or changes following a spouse’s death. Be aware that there are unscrupulous individuals out there who may try to take advantage of your situation by recommending things like excessive insurance policies or questionable investments.
- Be sure that routine bills are paid on time. In the emotional wake of your spouse’s death and the rush to plan arrangements, it’s easy to overlook something as mundane as paying bills. But for the sake of your finances, it’s important to keep up with your financial obligations. If necessary, enlist a loved one to help you get a sense of which bills will need to be paid, and when. You should also ensure that all bills that were in your spouse’s name are transferred over to your name.
- Locate your spouse’s will, and determine its executor. The executor of a will is the person responsible for carrying out its terms and settling the deceased’s estate. They’ll need to follow certain legal and administrative procedures to ensure all debts are paid and assets are properly distributed. The executor is usually named in the will. If there is no executor named in the will, the probate court will typically appoint someone to be the executor.
- Inform your spouse’s employer of the death. If your spouse was still employed at the time of their death, you should reach out to their Human Resources department. They’ll instruct you to fill out any necessary paperwork, and let you know if you are eligible for any of your spouse’s accrued benefits.
- Contact life insurance providers. If your spouse had life insurance, contact the policy providers as soon as possible. It can take several weeks to receive funds from an insurance policy, so it’s a good idea to start the claims process early.
- Contact other insurance providers. If your spouse had homeowner’s insurance, car insurance, renter’s insurance, or any other type of insurance policy in their name, you’ll need to contact the providers to inform them of the death and have the names on the policies changed.
- Contact the Social Security Administration. Social Security benefits may be available to you if your spouse worked for a long enough period of time. If your spouse worked for at least 10 years, it’s likely that you will qualify to receive survivor’s benefits through the agency.
- Inquire about additional benefits. If your spouse was a federal government worker, served in the military, or belonged to a labor union, you may be eligible to receive additional benefits. If your husband or wife was employed by the federal government, you should contact the Federal Employees Retirement System. If your spouse was in the military, contact the U.S. Department of Veterans Affairs. If your spouse was part of a union, you should contact the union directly.
- Contact credit card companies, banks, loan providers, and mortgage companies. Compile a list of all the different bank accounts, credit cards, loans, and investments that your spouse had in their name. Destroy any credit or debit cards that were issued to them, or checks that have their name on them. If you had joint bank accounts with your spouse, get them changed to your name only. Get a sense of the debts your spouse owed to creditors, and speak with a financial advisor and/or lawyer about the best way to settle those debts. Usually, they will be paid off with assets from your spouse’s estate.
- To prevent identity theft, notify the three major credit bureaus. It’s not uncommon for thieves to use the identities of those who have died to open new credit card or loan accounts. As a precaution, you should contact each of the three major credit bureaus – Equifax, Experian, and TransUnion – to report the death and get a death notice placed on their credit reports.
- Update your beneficiary information. If you had your spouse listed as a beneficiary on any of your accounts, retirement plans, policies, or your will, you should update them to designate a new beneficiary.
- Know where important documents and financial records are kept. These include your spouse’s will and other estate-related documents, burial arrangement paperwork, bank statements, birth and marriage certificates, Social Security cards, and insurance policies.
- Ensure that you and your spouse have named beneficiaries for your investments, retirement plans, and bank accounts. Naming a beneficiary on your financial accounts can help to avoid confusion and save time in the event that you or your spouse dies. This is especially important if there are significant sums of money in the accounts.
- Obtain life insurance and/or mortgage life insurance. A life insurance policy can be extremely beneficial to a surviving spouse, allowing them to maintain some financial normalcy after the death. Life insurance payouts can help surviving spouses keep up with mortgage and rent payments, pay for childcare costs, and cover basic household expenses after their loved one has passed away. Mortgage life insurance is another option to consider. It’s designed specifically to repay outstanding mortgage debt in the event that the borrower dies.