Managing Finances After the Loss of a Spouse: A Practical Guide

Losing a spouse can be one of the most challenging periods of life that a surviving partner navigates. As you work through the initial days and weeks in the wake of this loss, you’ll likely face a whirlwind of emotions. But you’re not alone, and you don’t have to go through the process alone.

For many, it’s about turning to those they love — people in your support system. For others, it’s about researching and taking practical steps. And, for some, it’s a combination of both. There’s no right or wrong way to take this journey, but there are some financial steps you’ll need to take along the way. And as you do that, there are helpful ways to make this time a little easier while you begin to focus on healing.

Ask for Assistance

Some decisions must be made quickly, while others can be pushed back — you can handle them when you have more time. Because you’ll be making critical financial decisions in a time when your mind may be pulled in many different directions, it can help not to approach the process alone. Find a friend, loved one, or confidante whom you trust and who can support you along the way. They’ll be able to go with you and take notes as you meet with advisors and other representatives. They don’t need to understand the details or make decisions; their role is to understand the next steps in the process and help guide you as you stay on track.

Get Organized

This is a time to start where you are. We all have plans of creating better systems and simplifying our lives, but the days following a spouse’s death likely aren’t the time for a complete overhaul. Instead, you’ll want to get a better idea of where things stand so you can make prudent decisions.

Spend some time getting a clear picture of where you are. What accounts do you have? Where are your assets? Whom do you have to notify? Get up to 15 copies of the death certificate for financial, legal, and estate planning updates.

You may wish to build a file or notebook to make your process a little easier. This gives you a tool to bring with you as you meet with banks and other financial entities. It provides a trail of conversations as you work on different projects and take notes. When you’re meeting with multiple people at this time, things can be difficult to remember; this file can be your reference guide as you move along.

Build Your Team

Depending on your situation, now may be the time to seek out professionals, including an attorney, tax accountant, or financial advisor. Many laws and regulations can have an impact on you as the surviving spouse. Professionals who work with these regularly can aid you in your journey and provide guidance that can make a difference.

If you haven’t used one of these professionals up until now, ask around for referrals. Select several and hear what they have to say. This is about getting good advice, not making significant changes to your life. Be cautious of anyone trying to make substantial changes to your current financial situation. This is a time for reorganization to get your financial bearings in your life moving forward. You can make investment changes and allocations later on.

Make the Changes

As a surviving spouse, you may inherit most assets you shared with your spouse. You may be the sole individual in charge of your financial situation. That doesn’t mean you have to race to get everything changed all at once. It can be better to monitor for a time to ensure you find all of your spouse’s accounts and activities. Many banks may tell you to leave an account open for a few months to ensure everything is transferred.

Notify each credit bureau that your spouse is deceased. Pulling a credit report from Equifax, Experian, and TransUnion can alert you to any accounts or debt you might not be aware of.

Then, work diligently to transfer accounts to your name or shut down individual accounts only in your spouse’s name. Handle this one account at a time. This is where your binder can be convenient, too.

Review Your Financial Situation Moving Forward

Your financial advisor may tell you to avoid significant changes in the first year. Instead, you can make this a year to fully comprehend where you stand and how you’ll move forward. Need new accounts just for your unique situation? Now can be the time to consolidate, move things around, and build a system that makes sense.

Create your own list of your individual assets: checking, savings, investment accounts, homes, vehicles, real estate, and any other investments you own. Also, build a liability list that includes mortgages, auto loans, credit card debt, and other obligations you must pay.

Be sure to change titles and account ownership to individual status. Transition or roll over any accounts for which you’re the designated beneficiary into your own accounts. You’ll need to file taxes for the year for your spouse. The years moving forward may change your tax situation; check with advisors for the best path.

Notify the Social Security Administration. Depending on your age and whether you or your spouse were already receiving benefits, it can be a good idea to evaluate your current position. You can start receiving full survivor benefits at your full retirement age. This can impact your benefits for the rest of your life, so it’s a good idea to seek guidance here, too, if you’re unsure about what to do.

Be Patient

Above all, be patient with yourself. This is a journey, not a destination. All of it will resolve in time, and it’s important to show yourself kindness as you grieve. Reaching out now to friends, family, and professionals can provide you with knowledge about how to move forward. They can also help you find peace in your new position.