By Eric Reich
Losing a loved one is always hard, and when that loved one is a spouse, it becomes even more difficult. To make matters worse, there are a lot of things that need to be done and decisions to be made especially at a time when you may not be thinking clearly because of your grief. This week I thought we would explore a list of some things that need to get done so that you don’t miss any important steps that you need to take. These are not necessarily in order.
1. Contact the funeral home and make arrangements. Don’t forget to consider veteran’s arrangements if applicable. Ask them to help you get additional copies of the death certificate. You almost always need more copies than you think.
2. Call your attorney. There are many legal things that may need to be addressed, and your attorney can tell you determine which ones apply to you.
3. Contact Social Security. Your benefits may change after a spouse’s passing so you’ll need to notify them ASAP.
4. Review/cancel their health insurance. If insurance is provided by a former employer, you will need to contact them.
5. Contact your spouse’s pension company if applicable.
6. Notify the life insurance company and file a claim. This is typically a very easy process so don’t put this one off for later. The sooner you get the funds the better in order to help you with all of the expenses.
7. If your spouse was a veteran, then you should contact the VA to see if there are any benefits payable to you.
8. Notify banks (change account names), credit cards (remove spouse or close accounts), mortgage companies, insurance companies, and all other important bills (change into your name only).
9. Contact your CPA to discuss all of the issues unique to this tax year. This is a great time to retain a CPA if you’ve been doing it yourself. Now is not the time to go it alone.
10. Contact your financial advisor. You will need to change account titles, file beneficiary paperwork for IRAs, 401k(s), etc.
11. Retitle any assets (real property, cars, etc.) in your spouse’s name to your own.
12. Prepare and probate the estate. Your CPA or attorney can often help with this step.
13. Update your own estate plan. If your spouse was your beneficiary, then you’ll need to update all of your accounts, insurance policies, estate documents, etc. in order to reflect your new beneficiaries.
Just as important as all of these items are, it’s equally important to understand the things that you shouldn’t be doing as well. Do not do the following things.
1. Don’t make big decisions that you are not required to make. You don’t need to decide to keep or sell the house and move away right now. You need time to adjust to your new situation and snap decisions could be regrettable ones if they’re made without a “clear head”.
2. Don’t make major purchases. This is a time when I often see people spend more money than normal. Sometimes it’s due to a lack of focus on finances and sometimes it is due to wanting to “live for today”. Either way, now is a really important time to focus on your finances, and not let them get away from you.
3. Don’t be quick to give away money, or “stuff”. Often, I see clients giving away larger gifts to children after a spouse passes or their own or the deceased spouses possessions. First you need to fully understand your new financial situation before you can adequately access whether or not these gifts make sense. Giving away a spouse’s possessions needs to be well thought out. If not, family rifts can occur because your spouse may have had conversations with children regarding certain possessions that you might not be aware of.
It’s important to have a checklist to follow during this difficult time in order to keep a bad situation from becoming worse. I hope this helps!
Securities offered through Kestra Investment Services, LLC (Kestra IS), member FINRA/SIPC. Investment advisory services offered through Kestra Advisory Services, LLC (Kestra AS), an affiliate of Kestra IS. Reich Asset Management, LLC is not affiliated with Kestra IS or Kestra AS. The opinions expressed in this commentary are those of the author and may not necessarily reflect those held by Kestra Investment Services, LLC or Kestra Advisory Services, LLC. This is for general information only and is not intended to provide specific investment advice or recommendations for any individual. It is suggested that you consult your financial professional, attorney, or tax advisor with regard to your individual situation. To view form CRS visit https://bit.ly/KF-Disclosures.
Eric is President and founder of Reich Asset Management, LLC. He relies on his 25 years of experience to help clients have an enjoyable retirement. He is a
Certified Financial Planner™ and Certified Investment Management AnalystSM (CIMA®) and has earned his Chartered Life Underwriter® (CLU®) and Chartered Financial Consultant® (ChFC®) designations. A lifelong resident of Cape May County, Eric resides in Seaville, NJ with his wife Chrissy and their sons ,CJ and Cooper, and daughter Riley.
