Managing Your Finances After the Loss of a Spouse

Taking care of financial matters while you're grieving the loss of a spouse can feel overwhelming, especially when you don't know where to begin. But in the days and weeks after losing a spouse, try focusing on immediate, short-term financial needs like gathering and organizing important documents, filing for benefits, and updating account information. Then, when you're ready, you can tackle longer-term financial matters like reviewing your financial plan and updating your retirement goals.

Like many things in life, the key to making progress is taking the first step. In the immediate, focus on stabilizing your financial situation. Here are six financial steps that you, along with help from loved ones and professionals, can take to create a clear direction forward after losing a spouse:

Reach out to a team of professionals you trust who can help walk you through the financial transition and management of your assets.

Schedule a meeting with your financial advisor, CPA, and/or estate planning attorney to review your accounts and to discuss your estate matters. With the help of professionals, determine what you need to do in the near term to manage your estate settlement and inheritance. Set the expectation that you will also need their help later, once you're prepared, to work on the best way to move forward financially.

The first thing you'll want to do is gather up all your important documents, both printed and digital, that you'll need to handle financial matters like obtaining benefits, managing financial accounts, and settling the estate. Documents to gather include:

• Legacy love letter: If you and your loved one have created a legacy love letter, this can be a good place to begin settling necessary financial affairs. Ideally, the letter will contain personal and account information, as well as providing some guidance on your loved one's wishes following their passing.
• Death certificate: Request at least 10 certified copies of the death certificate as the certificate is required to claim insurance and Social Security benefits and to settle financial matters with banks and brokerages. Your local registrar, health department, or funeral director can help you obtain a death certificate.
• Legal documents: Locate important estate planning and legal documents such as a will, trust, and/or estate planning documents.
• Financial documents: Obtain financial statements from banks, brokerages, retirement accounts, business ownership documents, tax returns, as well as any outstanding medical and credit card statements.
• Title documents: Locate title documents like house and property deeds, as well as vehicle titles.
• Insurance documents: Obtain policy documents such as life insurance, homeowners' insurance, casualty insurance, and health insurance.
• Identification documents: Locate your loved one's social security card, as well as birth and marriage certificates.

Make sure that you have enough accessible funds to pay off any short-term bills on time (e.g., mortgages, utilities, auto loan, credit card, etc.). Upon a death notification, many financial institutions will typically restrict access to some account types (like community property accounts, tenants in common accounts or individual accounts held by the deceased spouse). Navigating through the estate process with these institutions can potentially take time, so you'll want to make sure you have the available cash needed for the short-term.

Notify financial institutions like banks, brokerages, and lenders to make them aware of the recent loss.

Consider running a credit report on your spouse's credit to ensure there isn't any debt in their name that you're unaware of. Close any credit cards or accounts held separately by your spouse. And, notify the credit bureaus of the death to prevent potential identify theft.

Review and update, as needed, information on any joint financial accounts, estate planning documents, and insurance policies. Check and update, as needed, any titles (property, home, and vehicle) that were held in your spouse's name.

Additionally, update usernames, passwords, and PINs on any of your spouse's digital accounts.

If applicable, contact the agency or organization by phone or in person and take detailed notes of the conversation, making sure to write out any steps you may need to take to complete the filing process. Consider reaching out regarding the following:

• Insurance benefits: Contact your insurance company and request the death claim form. Once completed, return the form with a copy of the certified death certificate and a copy of the insurance policy.
• Employer benefits: Contact the Human Resources office at your spouse's former employer to inquire about any benefits you may be eligible to claim.
• Veteran's benefits: As the spouse of a Veteran, you may qualify for certain benefits upon the death of the service member. Visit the local Veterans Administration office to apply for any veterans benefits you may be eligible to receive.

• Social Security benefits: Spouses may have options here, so discuss your strategy with a trusted financial advisor. When appropriate, have important documents readily available such as the death certificate, social security numbers for you and the deceased, birth and marriage certificates, social security numbers and birth certificates for any applicable descendants, the deceased tax returns, and the bank name and account number where benefit payments can be deposited.

  This is a difficult time, so take it one day, one decision at a time. No good can come from a rash financial decision in the midst of grief. Lean on your trusted professionals for guidance and support.

  Once you've secured and stabilized your near-term financial situation, the next step is to plan and manage your finances for the future.

Get a clear picture of where you stand financially by tracking your expenses, taking stock of your assets (cash, investments, etc.) and the total amount of debt (or liabilities) you owe like a mortgage loan, car loan, credit card debt, etc. Having a clear handle on your cashflow, assets and debt can provide you with a better understanding of your financial health.

Planning is inherently forward-looking–and is an act of courage and healing. When you feel ready, work with your trusted team to review and update (as needed) your financial plan based on your life, financial, and retirement goals.