Picking Up the Financial Pieces After Losing a Spouse

The loss of a spouse is a devastating event that can be made more difficult without the right planning. While preparing for the passing of a loved one is uncomfortable, discussing the necessary financial next steps can help the surviving spouse focus their energy on the grieving process.

Being unprepared financially can be especially hard if the bereaved was not previously responsible for managing income or paying bills. Having to suddenly oversee it all, you may wonder if there is a financial safety net to continue living in your home, caring for other dependents or maintaining your current lifestyle.

“The biggest thing we try to help a client with is a smooth transition,” said Lorrie Leonard, vice president and relationship manager at Rockland Trust Bank. “Families should be able to grieve, not worry about how to pay next month’s rent.”

The first step is locating the bereaved’s documents to make sure you pay important bills, that you can collect life insurance payments and carry out your loved one’s wishes(Opens in a new Window). The documents should contain information such as the will, account numbers, passwords for online account and phone numbers for friends and associates.

Even in situations when the departed has communicated his or her wishes clearly, the transition process can be emotionally overwhelming. It may help you to develop a checklist to ensure all the loose ends are tied up and household affairs are in proper order. Below are a few items and processes we have compiled to help you create a personal checklist.

Financial planning:

• You will need to obtain copies of the death certificate for notification purposes such as contacting the life insurance company, government agencies, etc.
• Consider hiring an attorney to work with the executor of the will, as it is a time-consuming task that comes with legal and tax responsibilities. Any mistakes made could result in financial penalties.
• Be sure to contact the life insurance company, which usually pays quickly. This money can be used to cover the cost of a funeral and other expenses.
• Any outstanding bills will need to be paid and the surviving spouse or the person assigned power of attorney will assume payment of monthly bills and paying off debts like car loans. They will need to notify credit card companies, utilities, internet provider and the deceased’s employer.
• The executor must notify Social Security so they can stop payment.
• A final income tax return must be filed by the executor.
• The surviving spouse/partner may have to determine what will happen with any real estate, such as the primary residence and any owned or rented properties.

Leonard has 30 years of experience and can attest that while losing a loved one is undoubtedly hard, it’s more difficult to process while also trying to make financial decisions. She’s part of a Rockland team of financial advisers who are ready to help you navigate your finances.