Losing a spouse is tragic and overwhelming – even before you consider the financial tasks in front of you. The financial items that need to be addressed might seem daunting but completing them as quickly as possible is vital to your financial wellbeing.
To help navigate your finances during this difficult time, we’ve put together a simple checklist of the most important tasks you will need to complete following the loss of a spouse. Complete the following form to download the checklist and read on for details around the most important tasks.
1.Collect Legal Documents and Death Certificates
The first thing you will need to do after the passing of your spouse is collect all legal documents including your spouse’s last will and testament. In many cases, you can get a copy of the will from the attorney who drafted it. Your attorney will also be integral in guiding you through the probate process to transfer your spouse’s assets and ensure debts are paid.
Along with the will, you will also need to gather other documents such as insurance policies, trust documents, property deeds, car titles, divorce settlements and child support orders from previous marriages, prenuptial agreements, and military discharge papers. These documents will help you claim benefits you are owed, transfer property into your name, and ensure debts are satisfied.
Many companies require a certified copy of the death certificate to facilitate transfer of assets into your name or discharge debts, so be sure to request 5 – 10 copies. You can get certified copies from the funeral home or vital statistics office in the state in which your spouse passed.
2. Notify Employers, Insurance Companies, and Government Offices
Once you have your documents together, you can begin to contact the applicable parties. These typically include insurance companies, employers, and government offices.
Contact the Social Security Administration
You’ll want to make sure that you contact the Social Security Administration [SSA] as soon as possible if the funeral home did not take care of this on your behalf. The SSA will help you determine if you are entitled to a one-time death benefit or ongoing survivor benefits based on your spouse’s earnings record. Fortunately, the SSA will also help you take care of many tasks related to your spouse’s Medicare benefits.
It is important to note that you can’t report a death or apply for Social Security survivor benefits online. You’ll need to call the SSA or visit your local Social Security office. Additionally, if your spouse was receiving Social Security benefits at the time of their passing, you may need to return benefits from the current and prior month depending on the date of death.
Contact Government Offices and Credit Bureaus
In addition to the SSA, you may need to contact other government offices to report your spouse’s passing. For example, you should contact the Veteran’s Administration if your spouse was a veteran since you may be entitled to assistance with burial costs or survivor compensation.
To prevent identity theft, you should also alert the Department of Motor Vehicles to cancel your spouse’s driver’s license and your local election office to cancel voter registration. Additionally, alert one of the three major credit bureaus – Equifax, Experian, or TransUnion. You will only need to contact one of the bureaus and the information will be shared with the others.
Contact Insurance Companies
If your spouse had life insurance, you will need to contact the company as soon as possible to receive your benefit. You will also need to contact other insurers to report your spouse’s passing and learn your options for continuing coverage or ending the policy. Some examples of other insurance companies you may need to contact are auto, homeowners, and health insurance companies.
Contact Employers
If your spouse was still working when they passed, you will need to alert their employer. When you speak with them, ask about retirement benefits and life insurance your spouse may have had through the company. It is also wise to contact your spouse’s previous employers to ensure that you have complete information about retirement and life insurance benefits.
3. Retitle Accounts, Property, and Applicable Debts
Your next step is to transfer assets and some forms of debt into your name. To do this, look back at the list of legal documents you made and begin contacting each company.
For physical assets that you own outright, you will need to contact the appropriate government office to transfer ownership to your name. For example, the DMV will help you transfer car titles that were held solely in your spouse’s name. Your attorney will be a valuable resource during this process since they can guide you through the various steps you will need to take depending on the type of property and ownership.
You’ll also need to contact your bank, brokerage firms, and retirement account administrators to move investments into your name. If these accounts were held jointly with your spouse, you will likely still be able to access them for the time being but check with each institution about their policies.
Most debts will be paid through your spouse’s estate, but there are some instances where you could be responsible for paying them after the probate process. These types of debt include jointly held loans, such as mortgages and credit cards. Additionally, some states require spouses to pay the debts on jointly held property, even if the loan was only in one spouse’s name. If there are any debts you will be responsible for repaying, contact the lender to determine if you need to make any changes to the agreement.
4. Update Your Estate and Financial Plans
If you had planned to leave your assets to your spouse upon your own passing, you will need to update your estate plan. Work with your attorney to update your last will and testament, financial power of attorney, and medical power of attorney to reflect your new wishes. You should also update your listed beneficiaries on investment and bank accounts since these assets are transferred outside of probate. For a comprehensive list of estate planning tasks, download our estate planning checklist.
Along with estate planning, your tax situation is likely to change with the passing of your spouse. Be sure to consult a qualified tax advisor before filing your next income tax return and discuss how to update your tax strategy moving forward.
In the immediate future, you will need to ensure that you understand your bills and how to pay them. Start by making a list of your subscriptions, utilities, rental agreements or mortgages, and other household bills. Then, ensure you have the applicable account numbers and access to your preferred method of payment.
As you review your financial obligations, it is wise to update your budget to reflect your new level of income and expenses. A trusted financial advisor can help you adjust your budget and update your financial plan to match your current situation. Your financial advisor can help you decide how to invest or spend life insurance proceeds, plan for changes in your income – including Social Security benefits – and adjust your investments to account for changes to your comfort with risk.
Meld Financial Can Help You Manage Your Financial Responsibilities
At Meld Financial, our team will support you through major financial changes – like the passing of a spouse. We can guide you through the steps you need to take to retitle investment accounts and even help you navigate the intricacies of government benefits through Social Security and Medicare.
When you are ready to adjust your financial plan, our team will create your Financial Fingerprint™ – a comprehensive wealth management plan that accounts for the most important aspects of your financial life. This plan is easy to understand, even if you don’t have a financial background. Best of all, you receive the ongoing support of an experienced team of tax, legal, and investment professionals.
To learn more about Financial Fingerprint™, contact us today.
