Managing finances following the death of a spouse

3/13/2017

Financial experts advise that you take your time and make calculated personal financial decisions after the death of a spouse. Rushed decisions made in grief may have lasting financial implications.

The first step is to obtain multiple copies of your spouse’s death certificate. A copy needs to be sent to the Social Security Administration (SSA). You can also send copies to your creditors, although they will ultimately get the notification from the SSA. Having extra copies on hand will make it easier to send them out when needed.

You will also need to execute the will. To do this, go to the court to get an order allowing the executor to carry out the deceased’s wishes. Executing a will means to carry out the actions required to liquidate the estate.

If you are unsure whether or not a debt is your responsibility after your spouse’s death, consult with an attorney. Do not agree to pay bills that are not your responsibility. However, be aware that creditors will most likely attempt to seek repayment for your spouse’s individual debts from the estate, if there is one.

When you are ready, there are a few things you can do to move forward financially.

Re-evaluate investment strategies
You will most likely have to change your investment strategies to support your new circumstances. It is important to re-establish a safety net by continuing or starting to contribute to a retirement plan and a savings account. Consider setting aside an emergency fund of at least three months’ salary.

Determine necessary financial tasks
Although you may take time to recover, don’t neglect paying your bills. This could result in your incurring of late fees and a negative credit rating. Establish a procedure to pay bills, make deposits and withdrawals, get cash and pay taxes. Get help from family and friends if you need it.

Create a new spending plan
Note differences in income and expenditures and adjust your spending accordingly. Explain to your children any necessary adjustments so they will understand when cutbacks are made.

Set goals
Most likely, your experience changed your financial priorities. Decide what you would like to do with your money and put a plan in place to make your goals a reality.

Most importantly, enlist the help and support from your family, friends and community. You might also seek help from your local hospice organization. While you will need to work on your financials, don’t rush into anything that isn’t time sensitive until you are ready.

Tagged in Money and relationships, Managing medical bills and debt, Navigating change

Jesse Campbell is the Content Manager at MMI, focused on creating and delivering valuable educational materials that help families through everyday and extraordinary financial challenges.

Better Business Bureau

MMI is proud to have achieved an A+ rating from the Better Business Bureau (BBB), a nonprofit organization focused on promoting and improving marketplace trust. The BBB investigates charges of fraud against both consumers and businesses, sets standards for truthfulness in advertising, and evaluates the trustworthiness of businesses and charities, providing a score from A+ (highest) to F (lowest).
Candid

MMI has achieved a Gold Seal of Transparency by Candid (formerly GuideStar), a leading source for insights on thousands of nonprofit organizations. For decades, Candid has provided data that powers hundreds of websites, programs, and applications related to philanthropic giving in order to help grantors make informed decisions.
Trustpilot

MMI is rated as “Excellent” (4.9/5) by reviewers on Trustpilot, a global, online consumer review platform dedicated to openness and transparency. Since 2007, Trustpilot has received over 116 million customer reviews for nearly 500,000 different websites and businesses. See what others are saying about the work we do.
Department of Housing and Urban Development

MMI is certified by the U.S. Department of Housing and Urban Development (HUD) to provide consumer housing counseling. The mission of HUD is to create strong, sustainable, inclusive communities and quality affordable homes for all. HUD provides support services directly and through approved, local agencies like MMI.
Council On Accreditation

MMI is proudly accredited by the Council on Accreditation (COA), an international, independent, nonprofit, human service accrediting organization. COA’s thorough, peer-reviewed accreditation process is designed to ensure that organizations like MMI are providing the highest standard of service and support for clients and employees alike.
National Foundation for Credit Counseling

MMI is a longstanding member of the National Foundation for Credit Counseling® (NFCC®), the nation’s largest nonprofit financial counseling organization. Founded in 1951, the NFCC’s mission is to promote financially responsible behavior and help member organizations like MMI deliver the highest-quality financial education and counseling services.