How to Manage Family Finances After the Death of Your Spouse
Few want to think about what might happen after the death of a spouse, but many of us will have to prepare for this inevitable, and for widows or widowers who are not prepared, the period immediately after the death of a spouse can be crucial. financial nightmare.
The New York Times has a detailed guide to managing family finances after a spouse’s death , which begins with advice to share as much financial information as possible before it happens:
Susan Covell Alpert was heartbroken when her 71-year-old husband, Larry, died of leukemia in 2008. Added to her misery was a wave of financial decisions and challenges that required the new widow’s attention at a time when she could barely think straight.
Like many other couples, Susan and Larry, who have been married for 46 years, have shared financial affairs. Larry was in the investment business and Susan paid some of the bills. Although Ms. Alpert owned a travel benefit business for large corporations, she was not prepared to manage the family’s finances.
“I knew every action and I knew where everything was,” said 78-year-old Ms. Alpert. “But I didn’t know what to do with all this.”
If you and your spouse also share financial affairs, make sure you both understand not only the state of the family’s finances, but also how to complete each other’s tasks. Consider creating a paper listing of financial accounts with login and password where appropriate, and keep it up to date. If you are concerned about password security, you can refer this list to your lawyer or executor of your will. (You have the will, right?)
After the death of a spouse, the surviving widow or widower will face many challenges, from organizing a funeral to handling the deceased’s credit cards. NYT suggests making a to-do list by priority:
Surviving spouses can reduce their stress levels by moving to to-do lists in stages, according to certified financial planner Alexander Armstrong. Above: Notify Social Security, call your life insurance company and pay important bills like utility bills and property insurance premiums. If the husband was still working at the time of death, his widow should consult with the employer about unpaid wages, accumulated leave and retirement plans. She may also be eligible for the Veteran’s Benefit.
One of Ms Alpert’s early steps was to appoint two of her grown daughters as agents for her financial and health care proxy.
Read the entire article to learn more about how to prepare for and deal with financial challenges after your spouse’s death – and if you have additional tips, please share.