Death is never easy, but it can be especially hard when you’re left to pick up the pieces of a financial mess. If your spouse has recently passed away and you’re now dealing with the aftermath of their finances, don’t worry — we have some tips that will help you get back on track.
It may feel overwhelming at first, but by following our advice and taking things one day at a time, you can make sure that your finances are in order and that there won’t be any surprises down the road. So, if you’re ready to take control of your finances after the death of your spouse, let’s get started!
1. Notify Government Agencies
After your spouse’s death, it’s important to notify all relevant government agencies — including Social Security Administration and the IRS — so they can adjust their records accordingly. You will also need to cancel any benefits associated with your spouse’s name, such as Social Security payments, pension benefits, or veterans benefits.
The surviving spouse will also need to notify any creditors of the death so they can adjust their records and ensure that all debts have been paid off. It is important to cancel any credit cards in the deceased spouse’s name as soon as possible so that no additional charges are made to the card after their death.
You will also need to contact any employers, banks, financial institutions, or other organizations associated with your spouse’s estate in order to ensure that all assets are accounted for and that the proper paperwork has been filed.
2. Locate Records and Documents
The next step is to locate all the necessary documents and records associated with your spouse’s estate. This should include any wills, trusts, insurance policies, bank statements, tax returns, investments, or other financial documents. Make sure you keep a copy of all important papers in a safe place so that you can refer to them when needed.
Once you have located all the necessary paperwork and records, it’s time to review them carefully. Look for any discrepancies or anything that doesn’t seem right — such as assets that were not properly accounted for — and contact an attorney if need be.
3. Consult With an Attorney
It is incredibly important to seek out the assistance of a qualified attorney when dealing with the death of a spouse and their financial matters. A qualified attorney can help ensure everything is in legal order, helping simplify the often-complex process.
The lawyer can assist in evaluating all relevant documents, such as bank accounts, investments, insurance policies, and other types of assets. They can also guide on reviewing wills and estate plans to ensure that all assets are properly divided among heirs. Furthermore, an attorney can advise on any tax implications that may result from the death of a spouse and how best to address those issues.
It’s also important for the surviving spouse to understand their rights regarding marital property, including real estate, personal property, debts incurred during marriage, and retirement accounts. An attorney will help explain these rights so that the surviving spouse understands their options as they work through this difficult time.
4. Review Benefit Options
After the death of a spouse, it’s important to review all available benefit options. For instance, Social Security Survivors Benefits can provide financial assistance for those who have lost a loved one — so make sure to check with the Social Security Administration about any benefits you may be eligible for.
You may also want to look into survivor annuities or life insurance policies that are payable upon death. These may provide some needed financial relief and help ease the burden of grief during this difficult time. Additionally, you will want to ensure all beneficiaries listed on insurance policies and other accounts are up to date to ensure they receive their correct distributions.
Under the federal COBRA law, the surviving spouse may be able to continue their health insurance coverage from their deceased partner’s employer. It is important to contact the former employer for more information about this option and any potential costs associated with it.
Also, don’t forget to check with any employers to see what type of survivor benefits they may offer. These can include items such as health insurance coverage, pension payments, and other types of assistance that can help in the interim while you’re grieving the loss of your loved one.
5. Pay Only the Bills You Must Pay
It is important to remember not to make any major financial decisions while in the fog of grief and focus on paying only the bills that must be paid. This can include things like mortgage payments, utilities, and other recurring expenses that need to be taken care of.
Take some time to evaluate your finances and consider what changes you may need to make going forward. The surviving spouse needs to understand their rights and obligations regarding debt incurred during the marriage — such as joint credit card accounts or loans — as these may need to be addressed before moving forward financially.
The last thing you want to do is fall behind on payments or let accounts go into collections while trying to sort out all of the financial details after death. That’s why it can be helpful to create a budget and prioritize what bills must be paid right away, as well as which ones can wait until later.
In some states, you are able to take advantage of consumer protection laws by freezing all credit accounts in the name of the deceased. This can help prevent potential creditors from trying to collect on any debts that may be owed.
6. Avoid Making Drastic Moves
In the wake of such a huge life event, it’s important to avoid making any drastic moves with finances. This means refraining from selling real estate or other assets that both spouses may have jointly owned. Rather than rushing into a decision, take some time to grieve and seek advice from qualified advisors before making any financial decisions.
Don’t cave in to pressure from any other family members who may be interested in getting their hands on the estate. Make sure to get all the facts, consult a qualified attorney, and evaluate options before taking any actions that could harm your financial health.
7. Contact Local County Agencies
Depending on the county you live in, there may be an additional step you can take to make sure that all financial matters are handled properly. Contact your local county agency for more information on any additional steps you may need to take in order to ensure a smooth transition of assets, debts, and other financial matters after the death of your spouse.
Wrapping Up
It can be hard to know how to move forward financially after losing a spouse — but remember, there are resources available to help you through this difficult time. Through proper preparation and guidance, you can ensure that your loved one’s legacy is respected and that you are able to maintain your financial security in the future.
Prepared by Broadridge Investor Communication Solutions, Inc.
Copyright 2022.
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