Preparing for the Death of a Spouse

Losing a spouse is a heart-wrenching event that can be difficult, if not unbearable, to even plan for. Therefore, many surviving spouses are not prepared for the death of their spouse and subsequently have to deal with financial and legal questions at a time when they are most likely not thinking clearly. This post discusses items to consider and think about, hopefully before, your spouse passes away.

Trusted Advisors

Be sure to surround yourself with trusted family and friends, along with trusted advisors like an accountant and lawyer. As the surviving spouse, think through the relationships you and your spouse have formed with these trusted advisors. Consider whether you will continue to feel comfortable using the same advisors once your spouse passes, especially if the main connection to the advisor was because of your spouse. Should you find new advisors?

Consider Both Your Financial and Estate Plans

Once your spouse passes, what will your financial plan look like? Do not make any major financial decisions immediately upon your spouse’s death. Yes, some decisions, like selling the second car, are not a big deal. However, other decisions, like selling or buying real estate, may have significant consequences.  Also, think through your financial plan before giving money, even when you think you will not need it. Bottom line, consult your trusted advisors before making any financial decisions.

Besides your financials, think about revisiting your own estate plan. As the surviving spouse, who will you name as your new health care agent and power of attorney once your spouse passes away? What will happen to your estate upon your death?

Other Odds and Ends

And, of course, as often is discussed here, you will have to think through and possibly coordinate:

• notifying any plans or policies of your spouse’s death
• figuring out which creditors to pay or not to pay
• planning a funeral
• retitling assets into your name alone
• opening a probate
• disclaiming assets

Although this is a lot to think through, it is necessary and beneficial to plan for. Consult your spouse and work with those trusted advisors so that you have a plan in place. Hopefully, the better prepared you are, the easier your transition will be.