Updated: Jun 6
This checklist covers 29 of the most important planning issues to identify and consider for our client whose spouse has recently passed away. It’s structured as follows:
Cash Flow Issues
Estate Settlement Issues
Investment & Asset Issues
Losing a spouse is a deeply emotional and challenging experience, and it can be overwhelming to deal with the financial aspects that follow. However, it is crucial to address these matters in order to secure your financial future. In this blog post, we will provide a comprehensive checklist of the most important issues to consider when a spouse passes away. From cash flow management to estate settlement, insurance, taxes, and investments, we will guide you through the essential steps to navigate this difficult period.
Assess Cash Flow Needs: Understand how the loss of your spouse's income will impact your financial situation. Develop a new income and expense plan, commonly known as a budget, to ensure your cash flow remains stable during this transition.
Social Security and Pensions: Review your eligibility for Social Security survivor benefits and any government pension based on your spouse's earnings. Consider consulting a financial advisor to understand the options and potential benefits available to you.
Executor and Probate Proceedings: Determine if your spouse appointed you as the executor under their will. Contact an attorney to assist with probate proceedings if necessary. It is advisable to store important legal documents, including wills and healthcare power of attorney, in a secure client vault or safe location.
Asset Management and Estate Planning: Evaluate your current assets and determine if any updates or adjustments to your estate plan are necessary. Consider the implications of owning joint property and potential changes in your federal estate tax liability.
Insurance Coverage: Explore insurance issues such as group life insurance provided by your spouse's employer or any additional coverage that may be applicable. Check if there are any life insurance policies or other benefits that have not been identified or claimed.
Tax Considerations: Ensure all prior income taxes of your spouse have been paid and understand the tax implications of your situation. Consult with a CPA or tax professional to determine the most advantageous filing status and potential tax planning strategies.
Investment and Asset Management: Review your investment objectives and risk tolerance, considering how the loss of income may affect your financial goals. Seek guidance on managing annuities, illiquid assets, and other investments. Avoid making costly mistakes by carefully understanding the terms and conditions of each financial contract.
Identity Protection: Take steps to reduce the risk of identity theft by addressing email accounts, social media profiles, driver's licenses, and notifying credit bureaus and relevant institutions. Be aware of potential state-specific issues that may require your attention.
Losing a spouse is an emotional journey, and handling financial matters can add additional stress during this time. While it is important to address these issues, it is equally crucial to give yourself time to grieve and process your emotions. Remember, the checklist provided here is intended to guide you through the necessary steps at your own pace. Seek support from financial advisors, attorneys, and professionals who can help you navigate these complexities and ensure a secure financial future for yourself and your loved ones.
At Gateway Financial, we understand the challenges you face and are here to assist you through this difficult process. If you're not already a client, we offer resources like this checklist to support individuals in managing their finances. Subscribe to our channel and visit us at www.mygatewaymoney.com to learn more. We are dedicated to helping you be your best during this challenging time.