Nobody is ever fully prepared for the death of a spouse. Unfortunately, the emotional challenges and financial responsibilities of your loved one’s estate now fall on you.
While dealing with loss is challenging, a lack of preparation to assume responsibility for your partner’s estate can leave you in a financial crisis. Here is what you can do to secure your future and safeguard your spouse’s legacy.
Gather Important Documents
Estate Documents
Know where all the important documents are, from the will and trusts to the power of attorney and healthcare directives. Understand what the documents stipulate to ensure your spouse’s desires get rightfully executed.
Financial Account Statements
Gather all financial documents and statements to understand the scope of your spouse’s estate. Ensure you have the bank statements, investment account statements, retirement account statements, and any insurance policies in your possession. Go through the documents and act accordingly.
Tax Documents
Ensure your spouse’s estate has no tax liabilities by obtaining their tax records, including past returns and recent documentation.
Debt Records
Look for outstanding debts, including mortgages, car loans, and credit card balances, and settle them before distributing assets.
Review and Understand Your Financial Situation
Income and expenses
Assess your incoming and outgoing money to understand your financial standing. A clear picture of your finances enables you to adjust your spending and savings without straining your resources.
Benefits
The Social Security Administration (SSA) gives payments based on your deceased spouse’s earnings history. You can be eligible for payouts if your spouse had enough work credits. Review pensions from your deceased spouse’s employer to see if they extend to the surviving spouse. If your spouse served in the military, check the Department of Veterans Affairs (VA) for veteran benefits that could be coming your way,
Investments
Does the current asset allocation align with your retirement needs? Evaluate your current investment portfolio, risk tolerance, and goals. Make adjustments to align with your current situation.
Seek Professional Guidance
Financial Advisor
Leverage the expertise of a financial advisor to guide you through the process of developing a financial plan. They will incorporate your newly acquired assets, income, expenses, and retirement goals in the strategy, enabling you to make the most out of your spouse’s estate. At Barnum, our financial advisors specialize in all aspects of financial planning, including estate, investment, and retirement management planning.
Estate Planning Attorney
Hire an attorney to review your existing estate documents and ensure they’re up-to-date. They can also advise on tax implications and offer strategies to minimize tax liabilities.
Tax Advisor
You may also require the expertise of a tax advisor to understand your new tax obligations as a widow. A tax advisor also ensures you benefit from all available tax advantages, from deductions to credits.
Communicate with Loved Ones
Let your adult children and trusted family members know about your financial situation and wishes for your estate in case of death or incapacitation. Furthermore, ensure your beneficiaries in your account know to facilitate a smooth transfer of assets. Communicating your wishes and desires minimizes misunderstandings and conflicts regarding inheritance, reduces tax liabilities, and bypasses probate.
Take Care of Yourself
Coping with loss is not easy. The emotional turmoil can make dealing with the deceased estate challenging. You’re allowed to mourn for your spouse. Avoid rushing the grief process. There is no timeline for healing. Take your time. Your overall health is more important.
If the distress is beyond your capacity to forebear, seek professional help from a grief counselor. They will help you unpack your feelings, deal with the pain, and develop resilience.
You can also join grieving support groups for widows to help you cope with loss. Grieving communities provide a shoulder to lean on, accountability while you mourn your loss, encouragement to keep going, and help when you fall. You also gain by learning through the member’s experiences. Their presence ensures you are not alone during this dark time.
