Losing your partner can be devastating. It is understandable that you may experience a flood of feelings – grief, sorrow, numbness, fear, anger, even guilt. To add insult to injury there are numerous financial items to address. When you are ready to tackle these items use this checklist as a guide to help you navigate your way to a new normal.
Assemble Your Team
Even the smartest and most energetic of us can benefit from professional help. An attorney can help you through the probate process. A CPA can help you file personal and estate tax returns correctly. A financial advisor can serve as coordinator of your professional team and help you put a plan in place so you can achieve your goals.
Call Social Security
Contact Social Security to request an appointment to review what survivor benefits you are entitled to and what your claiming options are. Should you claim now or delay for potentially larger benefits? Claiming Social Security is an important decision so make sure you are making the best decision for your long-term financial plan.
Update Your Estate Documents
Update your Will and Powers of Attorney (Financial and Healthcare) to reflect your new situation. Do you need to change your Executor/Personal Representative? Does your executor know how to find your passwords, keys to safety deposit boxes, etc.? Make sure your estate documents are updated as well as beneficiary designations for assets that pass outside of your Will.
Re-Evaluate Your Own Insurance
If you had health insurance through your spouse’s employer you should be covered by COBRA for a period of time but there may be less expensive options. Be prepared for auto insurance rates to change due to the “widow’s penalty” and be prepared to push back and ask to review all your options. Have life insurance and disability needs changed? Do you need to add or update an umbrella policy? Time to review your policies.
Tackle Tax Planning
Make sure you understand your filing status and how that impacts deductions. You may need to adjust your W-4 so your employer withholds the right amounts. Tax planning is not just about filing taxes, it is about looking ahead several years to make sure you are making the most efficient decisions now as you take into account how income may change in the future.
Talk to Your Life Insurance Agent/Carrier
Are you the beneficiary of your spouse’s policy? BEFORE making a decision to either put that money into another product (ex. annuity), make a big purchase, or pay off debt (ex. mortgage) consult with your team. Your financial advisor can run the numbers to determine how to both maximize the financial benefit of the proceeds and do what is best for your long-term plan.
Re-Title Accounts
You may have stumbled across accounts your spouse had that are news to you. There may have been accounts that lacked a beneficiary designation. Be prepared to spend time on the phone and time filling out forms to move assets into your name. A helpful hint: Request extra copies of death certificates and Letters of Administration as you will likely need these when transferring accounts.
Contact Your Spouse’s Employer
Was there an employer insurance policy? Is there a pension benefit? Are you the beneficiary of an employer retirement plan? Contact HR at your spouse’s employer to confirm any benefits or unpaid wages that were due to be paid.
Develop a Financial Plan
If you had a financial plan in place before, chances are assumptions have changed dramatically. This is the perfect time to put a plan in place that reflects your new goals, new cash flow, and new balance sheet. As part of this process confirm that your investment allocation is aligned with your goals. A plan can help you answer the million-dollar question “Will I Be Ok?”
As much as you may want to put all of the items above off to a later date, they won’t go away. Give yourself time to grieve but also make a goal to get your financial life back on track. Many find that focusing on such a purposeful action and the resulting sense of accomplishment is part of the healing process.
If this checklist seems overwhelming it does not need to be. You can partner with a financial advisor who can help you navigate through all of these complexities. Molly Goetz (CFP®, CDFA®) is a Partner & Practice Lead at Greenspring Advisors. Contact her if you want to get started on putting a financial plan in place.
Information contained herein has been obtained from sources considered reliable, but its accuracy and completeness are not guaranteed. It is not intended as the primary basis for financial planning or investment decisions and should not be construed as advice meeting the particular investment needs of any investor. This material has been prepared for information purposes only and is not a solicitation or an offer to buy any security or instrument or to participate in any trading strategy. Past performance is no guarantee of future results.
Recent Insights
Your Financial End-of-Year Checklist: Insurance Planning, Estate Planning, and Other Considerations
