Financial Steps to Take Immediately when Spouse Dies
By Saghir A. Aslam
Rawalpindi, Pakistan
(The following information is provided solely to educate the Muslim community about investing and financial planning. It is hoped that the Ummah will benefit from this effort through greater financial empowerment, enabling the community to live in security and dignity and fulfill their religious and moral obligations towards charitable activities)
Dear Liz : What financial steps need to be taken right after your spouse dies?
Answer: Your attorney or accountant may have detailed checklist to guide you through the many tasks involved.
In general, though, you’ll be setting the estate, notifying appropriates parties, signing up for any benefits and shutting down potential identifying theft.
To Start:
- Get 10 to 12 certified copies of the death certificate (ask the funeral home for these).
- Find any estate planning documents, such as a will or a living trust, to start the process of setting the estate. That may require opening a probate case at the country courthouse.
- If you don’t already have an estate planning or probate attorney, consider hiring one for help.
- Contact your spouse’s employer about any life insurance or retirement benefits, such as a 401 (k) or pension.
- File a claim if your spouse had life insurance.
- Call Social Security at (800) 772-1213 to ask about survivor benefits. If you and your spouse’s death, and you’ll get the larger of the two checks from now on.
- If your spouse served in the military, contact the Veterans administration to inquire about additional benefits.
- Cancel your spouse’s health insurance.
- Contact banks, brokerages, lenders and credit card companies to inform them of the death and close accounts or transfer them to your name alone.
- Notify the three credit bureaus: Experian, Equifax and TransUnion.
- Delete or memorialize social media accounts.
There are a few things to avoid as well. A big one: Don’t give away money or assets prematurely. These maybe needed to settle the estate, or you may want more time to make good decisions. If you’re getting pressure from family members or anyone else, refer them to your attorney.
Be careful about making big changes, such as moving or selling a home, in the next year so because grief can impair your decision-making abilities.
Don’t try to do all this yourself. Let the attorney assist with estate-setting tasks and hire a tax pro to file your spouse’s final tax return.
Also consider talking to a free-only financial planner. You may have options for payouts from retirement accounts, life insurance and Social Security. For example, your choices could dramatically affect your future standard of living.
(Saghir A. Aslam only explains strategies and formulas that he has been using. He is merely providing information, and no advice is given. Mr Aslam does not endorse or recommend any broker, brokerage firm, or any investment at all, nor does he suggest that anyone will earn a profit when or if they purchase stocks, bonds, or any other investments. All stocks or investment vehicles mentioned are for illustrative purposes only. Mr Aslam is not an attorney, accountant, real estate broker, stockbroker, investment advisor, or certified financial planner. Mr Aslam does not have anything for sale.)
