When you’ve just lost your other half, grief can make you feel as though the world is crashing down around you. Money probably isn’t a priority during this time, but eventually you may find that you need to manage finances after losing a spouse. Here’s a guide to walk you through some key steps.
Gather Important Documents
Within the first 30 days after your spouse’s passing, try to gather all relevant documents, including:
- 10 to 15 certified copies of the death certificate
- Any relevant insurance policies
- Your spouse’s will
- Any trust documents that were part of the estate
In most cases the funeral home reports the death to the Social Security Administration, but confirm this has been done. You will still need to contact the SSA directly to ask about survivor benefits; neither death reports nor survivor benefit applications can be submitted.
Confirm Your Near-Term Needs Are Covered
Depending on your financial situation and the size of your spouse’s estate, it may take several months to fully settle your finances. Early on, it’s essential to verify that you have access to enough cash to cover existing bills and short-term needs.
If you aren’t sure how much money you need in the short term, start by adding up all of your current monthly income streams. Then list housing, insurance, utilities, and other regular expenses.
Don’t hesitate to seek your financial advisor’s help during this time. Dealing with grief makes it hard to think clearly, especially when it comes to the complexities of finances.
Figuring out your temporary finances before your spouse’s estate is settled is an essential step. However, it’s also a good idea to avoid making big financial decisions for at least the first six to twelve months after your spouse’s death. Don’t rush to sell the house, sell off major investments, or make a big purchase just yet if you can.
Update Accounts and File Claims
Married couples often have joint bank accounts and jointly owned vehicles. After your spouse’s death, you may need to go through the emotionally challenging task of retitling these assets in your name only.
You might also need to notify financial institutions and credit bureaus of your spouse’s death. If you don’t, there’s a risk that someone may open fraudulent accounts in their name.
If your spouse had a life insurance policy, consider filing a claim relatively soon; that money may help support you as you figure out your financial next steps.
Many people think of life insurance and Social Security benefits when they imagine the death of a spouse, but you could be eligible for other benefits too. Check with your spouse’s employer to see if you qualify for any employer-provided benefits. If your spouse was a veteran, you may be eligible for survivor benefits as well, though eligibility rules and income limits vary by program.
Look Closely at Your Financial Health
Planning for a future without your spouse in it can be devastating on its own. But to eventually move forward with your life, this planning is critically important. Write down or keep track of all of the following:
- Your monthly expenses
- Your monthly income
- The total amount of debt you owe
These items can give you an idea of your cash flow and whether you have the ability to pay existing debts. When you’re ready, they can also be used to create a new financial plan reflecting your current situation and goals.
Let Us Help You After Losing a Spouse
Losing a spouse impacts every area of your life, not just your finances. The Baker Team at Parkway Wealth Management Group is here to offer clear, straightforward guidance while supporting you through one of the most difficult times of your life. As a multigenerational family practice, we know to combine experience with new insight.
Whether you’re retired, widowed, or just looking for a non-judgmental financial partner, talk with our team to see how we can help. To schedule a meeting or learn more, get in touch by calling (972) 502-9340, emailing jackson.baker@parkwayteam.com, or booking online here.
Frequently Asked Questions
What should I do first to manage finances after losing a spouse?
After losing a spouse, start by gathering important documents, including certified copies of the death certificate, insurance policies, estate planning documents, and financial account information. Notify the Social Security Administration, contact financial institutions, and check that you have enough cash available for immediate expenses. Once the urgent tasks are complete, we can help you organize your finances and create a plan for moving forward at a pace that’s right for you.
How long should I wait before making major financial decisions after my spouse dies?
While every situation is different, many financial professionals recommend avoiding major financial decisions (e.g., selling your home, making large investments, or significantly changing your portfolio) for at least the first six to twelve months if your financial situation allows. Taking time to understand your new financial picture can help you make more confident, well-informed decisions rather than reacting during a period of grief.
How can a financial advisor help after losing a spouse?
A financial advisor can help you organize accounts, evaluate income sources, update your financial plan, coordinate with your attorney and tax professional, and develop a strategy for your future. Parkway Wealth Management Group works with widows, widowers, retirees, and families. We can help you work through your finances after losing a spouse at a pace that suits you, and build a plan that reflects your new goals and circumstances.
About Gavin
Gavin Baker is a financial advisor at The Baker Team (located in Plano and Nacogdoches, Texas) who blends fresh insights with his family’s decades of experience to provide relatable, honest guidance for retirees and pre-retirees throughout Texas. When providing investment advisory services, Gavin is committed to a fiduciary standard, and he focuses on personalized strategies for retirement income, tax aware planning, and sequence of returns risk. He works within a multigenerational family practice built around long-term client relationships.
Advisory Services offered through Parkway Wealth Management Group, LLC., an SEC Registered Investment Adviser.
Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®, in the United States to Certified Financial Planner Board of Standards, Inc., which authorizes individuals who successfully complete the organization’s initial and ongoing certification requirements to use the certification marks
