ORGANIZING
YOUR FINANCES WHEN YOUR SPOUSE HAS DIED
Losing
a spouse is a stressful transition. And the added pressure of having to settle the estate
and organize finances can be overwhelming. Fortunately, there are steps you can take to
make dealing with these matters less difficult.
Notify
others
When
your spouse dies, your first step should be to contact anyone who is close to you and your
spouse, and anyone who may help you with funeral preparations. Next, you should contact
your attorney and other financial professionals. You'll also want to contact life
insurance companies, government agencies, and your spouse's employer for information on
how you can file for benefits.
Get
advice
Getting
expert advice when you need it is essential. An attorney can help you go over your
spouse's will and start estate settlement procedures. Your funeral director can also be an
excellent source of information and may help you obtain copies of the death certificate
and applications for Social Security and veterans benefits. Your life insurance agent can
assist you with the claims process, or you can contact the company's policyholder service
department directly. You may also wish to consult with a financial professional,
accountant, or tax advisor to help you organize your finances.
Locate
important documents and financial records
Before
you can begin to settle your spouse's estate or apply for insurance proceeds or government
benefits, you'll need to locate important documents and financial records (e.g., birth
certificates, marriage certificates, life insurance policies). Keep in mind that you may
need to obtain certified copies of certain documents. For example, you'll need a certified
copy of your spouse's death certificate to apply for life insurance proceeds. And to apply
for Social Security benefits, you'll need to provide birth, marriage, and death
certificates.
Set
up a filing system
If
you've ever felt frustrated because you couldn't find an important document, you already
know the importance of setting up a filing system. Start by reviewing all important
documents and organizing them by topic area. Next, set up a file for each topic area. For
example, you may want to set up separate files for estate records, insurance, government
benefits, tax information, and so on. Finally, be sure to store your files in a safe but
readily accessible place. That way, you'll be able to locate the information when you need
it.
Set
up a phone and mail system
During
this stressful time, you probably have a lot on your mind. To help you keep track of
certain tasks and details, set up a phone and mail system to record incoming and outgoing
calls and mail. For phone calls, keep a sheet of paper or notebook by the phone and write
down the date of the call, the caller's name, and a description of what you talked about.
For mail, write down whom the mail came from, the date you received it, and, if you sent a
response, the date it was sent.
Also,
if you don't already have one, make a list of the names and phone numbers of organizations
and people you might need to contact, and post it near your phone. For example, the list
may include the phone numbers of your attorney, insurance agent, financial professionals,
and friends--all of whom you can contact for advice.
Evaluate
short-term income and expenses
When
your spouse dies, you may have some immediate expenses to take care of, such as funeral
costs and any outstanding debts that your spouse may have incurred (e.g., credit cards,
car loan). Even if you are expecting money from an insurance or estate settlement, you may
lack the funds to pay for those expenses right away. If that is the case, don't panic--you
have several options. If your spouse had a life insurance policy that named you as the
beneficiary, you may be able to get the life insurance proceeds within a few days after
you file. And you can always ask the insurance company if they'll give you an advance. In
the meantime, you can use credit cards for certain expenses. Or, if you need the cash, you
can take out a cash advance against a credit card. Also, you can try to negotiate with
creditors to allow you to postpone payment of certain debts for 30 days or more, if
necessary.
Avoid
hasty decisions
·
Don't
think about moving from your current home until you can make a decision based on reason
rather than emotion.
·
Don't
spend money impulsively. When you're grieving, you may be especially vulnerable to
pressure from salespeople.
·
Don't
cave in to pressure to sell or give away your spouse's possessions. Wait until you can
make clear-headed decisions.
·
Don't
give or loan money to others without reviewing your finances first, taking into account
your present and future needs and obligations.