Financial Steps to Take After the Death of a Spouse

It is impossible to prepare for the death of a spouse or companion. And deciding what to do after your spouse dies might be challenging when you're coping with a torrent of emotions.

The surviving spouse is now in a new, possibly worse, financial condition. Pension benefits will be altered, and expenses will no longer be divided. With potentially less money coming in, the remaining seniors must now decide how to manage day-to-day life on their own.

Following the death of a spouse, you should take several significant steps to ensure your finances won't suffer. Following the death of a loved one, these steps will assist you in establishing your estate and securing your money in the short and long term.
While certain decisions must be made quickly, take the time to understand the implications of each option for your retirement and other significant financial goals.

 
Step 1: Get Organized 

Following the death of a loved one, these steps will assist you in establishing your estate and securing your money in the short and long term.

While certain decisions must be made quickly, take the time to understand the implications of each option for your retirement and other significant financial goals.

 Before making any changes to your accounts or exercising beneficiary or death claims, consult your financial professional, tax advisor, and attorney. They may have alternatives you need to be aware of that could benefit you financially while claiming assets. 
 

Step 2: Contact Social Security

Contacting the Social Security Administration to notify you of your loved one's death is a vital first step. If your spouse receives benefits, their payments will be halted. Find out if you (and, if applicable, your children) are qualified for survivor's benefits, which can provide a valuable financial cushion. The funeral home may handle this notification for you, so inquire whether they will or should not.

If your spouse received a pension or served in the military, check with those institutions to see if you are eligible for spousal benefits.
 

Step 3: Review your current financial situation

Include your checking, savings, and investment accounts, as well as your home, vehicles, and any real estate or land. Subtract any existing responsibilities, such as a mortgage, vehicle loan, credit card debt, and other obligations. A financial professional can help you with this procedure. 

 

Step 4: Don't forget to file a final tax return

You must complete their final taxes as the executor. Make sure you have all of the necessary papers for that one. The last federal income tax return is due on April 15th of the year after death. Furthermore, you will be required to do so if the individual did not file taxes for previous years.

 

Step 5: Notify Insurance Companies

When your spouse dies with life insurance, the death benefit is not distributed automatically; you must inform the insurer and make a claim.

Contact your spouse's life insurance agent to start the procedure. If you need help, you can file a claim with the insurance carrier directly. Also, contact other insurance providers where your spouse held coverage, such as health, house, or auto insurance. If you were insured by insurance jointly, you'd need to find out how to eliminate your spouse while keeping your coverage.

Step 6: Review Bills and Payment Due Dates

It's crucial to keep up with bills so you don't lose access to essential services like power or mobile phones and don't miss payments and damage your credit score. It's a good idea to review all your bill accounts and ensure they're all current. If you have accounts in your spouse's name, you must contact those companies to alter the name to yours.

Consider putting your payments on autopay to ensure they are always paid on time. Also, ensure that any existing bills on autopay charge accounts are still active and financed. If this work feels too daunting, consider sitting down with a trusted family member to review expenses and ensure you are getting everything and have a plan.

 

The professionals you choose should collaborate to ensure that you are fully informed about critical decisions and that your requests are carried out throughout the process. They can alleviate the burden and stress of dealing with your short- and long-term demands.

When your spouse dies, there is a lot to be done financially. Advanced planning and knowing where to turn can help you save time and frustration. Remember that all of this will take time. Allow yourself the time you need to grieve healthily, one day at a time.