When your husband dies, you are faced with a devastating shadow of grief, anxiety and uncertainty. You used to make decisions with your partner, but now you feel alone.
For women, especially, who have a greater life expectancy than men, navigating the financial implications of this kind of loss is complicated and overwhelming.
If named to execute your loved one’s estate and financial affairs, you should compile a list of issues that need to be addressed in the upcoming weeks and months. Then, prioritize those actions that you must take immediately to help minimize any possible financial hardships. By focusing your efforts, you will lay a solid foundation for the remaining decisions.
Safeguard your family’s financial well-being by taking these practical steps to help you navigate this new chapter with confidence and clarity.
- Arrange the funeral and obtain copies of the death certificate
Select a funeral home, if not pre-planned. Be sure to follow the directives if your loved one planned a body or organ donation. Coordinate arrangements for the funeral or memorial service, in consultation with your minister, priest, or rabbi, if appropriate.
Order multiple copies of the death certificate from the funeral director or health department. You will need them soon for settling the estate and applying for retirement, Social Security and death benefits. As the executor it is wise to keep some certified photocopies on file, as they may be needed years later.
- Notify professional advisors and set up a filing system
Reach out to your loved one’s estate planning attorney, accountant, and financial advisors for any valuable information. This information can save you time in assembling an estate asset inventory and in searching for copies of tax returns. Also, at your earliest convenience, you should notify each of the financial investment firms and retirement plans of your spouse’s passing.
Create an organized file system for the estate with centralized file folders for easy retrieval of information you will reference during this transition period. However you choose to set up your records, keep a separate file of any claims against the estate, your family member’s debt and an ongoing record of your payment of debts. Once you can track all pertinent statements and paperwork, check named beneficiaries and post-death distribution options for any Individual Retirement Accounts (IRA) or life insurance policies.
Place safeguards to protect any personal property. Assert control over your bill paying, including your mortgage and insurance premium payments, if you were not previously handling this task.
- Collect benefits and attend to financial affairs
As the executor, report your family member’s death to the Social Security Administration. If your loved one was receiving Social Security benefits by direct deposit, request that the bank return any funds or checks it receives for the month of death and beyond to Social Security.
Providing that you are appointed as executor, you should transfer ownership to your name or the beneficiary’s only for all property and financial relationships you have held jointly (joint tenants with right of survivorship, tenants by the entireties, and payables on death accounts). Be mindful of impending business transactions and important management issues if your spouse owns an interest in a business. Seek the direction and information of the company attorney, any partners, and key employees when handling business matters.
Correspond with the deceased’s employer within 30 days of death to determine what health, dental, and vision insurance benefits are available to you and your children for temporary continuation under the Consolidated Omnibus Budget Reconciliation Act of 1986 (COBRA).
Suppose you are the surviving spouse or child of an active-duty military member or retiree. In that case, you should also contact the Department of Veteran Affairs to verify eligibility for certain veteran and military survivor benefits.
A CFP® professional can play a pivotal role in supporting your transition to a secure and independent financial future. Find a CERTIFIED FINANCIAL PLANNER® who can help you with your cash flow planning, as well as guide you in implementing an investment plan customized to meet long-term financial goals and fulfill life aspirations.
Remember not to let emotions influence your decision-making and estate stewardship. Also, share this process with your loved ones, as the most difficult part of this event is coping with the emotional and financial aspects of the loss. The greatest gift you can give is one that inspires you to create a legacy plan—and share it with those closest to you.
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