Financial Checklist –
Are you Preparing to Become a Widow/Widower or just recently become one?
1)Organizing your Finances Before the Death of a Spouse: Losing a spouse is difficult enough. Fortunately, there are steps you can take to make it a little more manageable.
- Get advice: Getting expert advice when you need it is essential
- Notify Others: Your attorney and any other financial professionals such as financial advisor, CPA/accountant to inform them of your current situation so they can help you prepare in organizing documents and verifying beneficiary information
- Contact List: Create a contact page with all of your financial professionals information, so you know who to call and are familiar with their role in your families affairs as well as find a funeral home for final arrangements.
- Estate Documents: Review estate documents to ensure no changes or updates need to be made. If changes need to be made, make an appointment with your estate attorney as soon as possible.
- Accounts/Life Insurance: Review any accounts or policies in which a beneficiary is named to ensure the correct beneficiary is listed. Discuss updating any individual accounts to Transfer on Death accounts to avoid Probate
- Account Access: Make sure you have know how to access any accounts with online access. Make a list of user names and passwords. Keep this information in a safe and secure location.
- Business Assets: Meet with business partners and wife to discuss business ownership
- Credit Cards: Discuss any outstanding debts, make a list of all account numbers, account balances, minimums due and interest rate.
- Airline Points: Transfer any airline points or other credit card benefits earned.
2) Locate important Documents and Financial Record: By locating important documents and financial records you will know where to get the needed information:
- Estate Documents
- Birth certificates
- Employer Plan Benefit Information
- Title Documents (Auto/Home)
- Account User Names/Passwords
- Marriage certificates
- Financial account statements
- Life insurance policies
- Details for any pre-determined final arrangements
- Resource Contact List
3) Evaluate Short-term Income and Expenses: When your spouse is still living, its easier to get a handle on your short-term income and expenses.
- 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.
- Ensure you have access to all bank accounts
- Meet with your spouse to review monthly cash flow and expenses
- Try to negotiate with creditors to allow you to postpone payment of certain debts.
- As a last resort, use credit cards or even cash advances against credit cards, but be aware that the interest rates on cash advances can be above 25%.
4) Avoid hasty decisions: The pending death of a spouse is an emotional time that can trigger emotional decisions, so it is important to avoid making hasty decisions. Follow these tips to help keep your finances secure:
- 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.
- Don’t cave in to pressure to sell or give away your spouse’s possessions.
- Don’t give or loan money to others without reviewing your finances first.
At the very least reach out to your friends and family to ask for direction and help! If I can help you or someone you may know, do not hesitate to call me at 615.369.1611 or email me at mdstephens@royalaa.com.
