Family & Legacy

Financial Checklist After the Loss of a Spouse

We are sorry. If you're reading this after losing your spouse, many decisions can be taken one step at a time, though a few matters may need prompt attention.

There will be a flood of paperwork, phone calls, and well-meaning advice. Many major financial decisions can often wait, but some legal, tax, insurance, benefit, probate, and account matters may have deadlines. Before postponing an item, confirm with the appropriate professional which steps are time-sensitive.

What follows is organized in stages rather than as one long list. Work through the first stage, let the rest wait, and lean on the people around you — including us — for the parts that can be handled on your behalf.

This may be worth discussing if…

You have recently lost your spouse or partner
You are helping a parent or friend after a death in the family
You are unsure which accounts and benefits need attention, and when
You are being asked to make decisions you don't feel ready to make
You want to prepare in advance so your family isn't left guessing

Stage one: first steps

The short list. Nothing here requires a financial decision.

Request multiple certified copies of the death certificate — more than you expect to need, as most institutions require an original
Notify close family and ask someone you trust to help field calls
Locate the will, trust documents, and any letter of instruction
Notify the funeral home to report the death to Social Security, or confirm it has been done
Set aside incoming mail and paperwork in one place rather than trying to process it
Do not make large financial decisions, close accounts, or move investments yet

Stage two: financial accounts

Usually over the following weeks. We can handle much of this alongside you.

Make a list of all known accounts: banking, investment, retirement, insurance, and workplace benefits
Confirm which accounts were jointly held and which were individually owned
Contact life insurance companies to begin any claims
Contact your spouse's employer or former employer about final pay, retirement plans, and benefits
Review upcoming bills and automatic payments to prevent lapses in essential coverage
Confirm ongoing cash flow: what continues, what stops, and what changes
Contact Social Security about survivor benefits, and hold off on claiming decisions until you understand the options

Stage three: estate and legal matters

Best handled with your attorney; timing varies by state and by estate.

Meet with the estate attorney to understand whether probate is required
Retitle jointly held property, vehicles, and accounts as appropriate
Transfer or retitle inherited retirement accounts carefully — the rules are specific
Update your own will, trust, powers of attorney, and health care directives
Review and update every beneficiary designation on your own accounts
Update your trusted contacts and emergency instructions

Stage four: tax matters

Coordinate with your tax professional; some items are time-sensitive.

Discuss filing status for the current tax year and the years that follow
Determine cost basis adjustments that may apply to inherited assets
Confirm whether estimated tax payments need to change
Understand how survivor benefits and distributions will be reported
Ask whether any estate or state-level filings are required

Stage five: when you're ready

Months later, not weeks, for most of these items.

Revisit your income needs and monthly budget as one household rather than two
Review your investment allocation against your own goals and comfort with risk
Reconsider housing, and give any move at least a year of thought if you can
Simplify and consolidate accounts to reduce ongoing administration
Update your long-term plan, including what you'd like to leave and to whom
Consider whether family members should be brought into the conversation

Things to consider

Both sides of the decision, laid out plainly.

Give irreversible decisions time

Many major financial decisions can often wait, but some legal, tax, insurance, benefit, probate, and account matters may have deadlines. Before postponing an item, confirm with the appropriate professional which steps are time-sensitive.

Household income may change materially

One Social Security benefit generally ends, pension survivor terms may apply, and tax filing status typically changes. Understanding the new baseline comes before any spending decisions.

Be alert to pressure

Be cautious with urgent-sounding financial offers or requests, and take time to verify them with trusted professionals before acting.

Retirement accounts need careful handling

Surviving spouses have specific options for inherited retirement accounts, and how the account is retitled has lasting consequences.

You don't have to hold all of this

Much of the account-level work can be handled on your behalf. Ask for the list to be taken off your plate.

Questions to ask Rob

What does our income picture look like now, month to month?
Which accounts need attention first, and which can wait?
Can you help coordinate paperwork with the custodian and insurance companies?
Should any investment changes be made now, or should we wait?
When would be a good time to revisit the long-term plan?

Questions to discuss with your tax or legal professional

What filing status applies for this tax year and the next?
Is probate required, and what does the process look like in my state?
What cost basis adjustments apply to assets I've inherited?
Which documents of my own should be updated, and in what order?
Are there any deadlines I need to be aware of?

Key takeaway

Take the first stage only. Certified death certificates, essential bills, and trusted help are enough for now — the financial decisions can and should wait until you're ready to make them well.

Still have questions?

Every situation has details a general guide can't cover. A short conversation is usually the fastest way to sort out what applies to you.

Schedule a Conversation With Rob

This material is provided for general informational and educational purposes only and should not be construed as individualized investment, tax, accounting, or legal advice. Individual circumstances vary, and strategies discussed may not be appropriate for every investor. Wealthspan Investment Management, LLC does not provide legal or tax advice. Clients should consult their attorney, tax professional, and financial advisor regarding their individual circumstances. Investing involves risk, including possible loss of principal.