The death of a spouse is a challenging event to face and move through. You are dealing with grief, along with worries about an unknown future. If that is not enough, unfortunately, many practical financial issues must be addressed at this time. It can all seem overwhelming.

What to Do First When a Spouse Dies 

Here at Kayne Anderson Rudnick (KAR), we have created a comprehensive checklist and timeline of responsibilities you may face after a spouse’s death.

Set Up an Assistance Network

There are a lot of decisions to be made and tasks to be done when a spouse dies. You do not have to do it all by yourself. It is important to take advantage of all available help. Friends and family can help you make notifications and funeral arrangements and assist with immediate living needs. Advisors like your attorney, insurance agent, financial advisor, and accountant can help guide you through a maze of requirements and advise you on the best financial and legal strategies.

Call Your Attorney

You can make the process of managing your deceased spouse’s affairs easier by enlisting the help of an attorney. This is especially true if your spouse has named you the executor of their will.

Obtain Death Certificates

Make sure you get at least a dozen copies of death certificates, as you’ll need an official death certificate, (not a photocopy) for a variety of purposes, including to close or transfer bank or brokerage accounts, to file insurance claims, to register for pensions or government death benefits, and to notify government agencies. Often, the funeral home managing your loved one’s memorial service and burial or cremation can handle obtaining copies on your behalf, or you can order them from the vital statistics office in your spouse’s state of residence.

How to Prepare Financially for Death of Spouse 

It is not easy to keep up with complex responsibilities when you are stressed, especially after the death of a loved one. Think of organization as a critical component of self-care. You do not need the added worry of wondering where necessary paperwork went or whether you have taken care of essential tasks.

Organize Documents & Communication for Peace of Mind

There are three main categories of things you should try to organize well from the start:

• Records. You will need many documents, some of which already exist and will need to be located. Our checklist will help you identify and find them. You will receive others during the process. All should be filed within easy reach. 
• Contact list. There are many people and agencies involved in settling a loved one’s estate and setting yourself up for the future. It will save time and angst if you have one place to store all of their names and contact information. 
• Communications/actions. You should create a running “diary” of all communications and actions taken related to each issue you are working on — funeral arrangements, government benefits, bill payment, taxes, estate settlement.
• Will. Make sure you know where your spouse keeps their will so that you can share it with your attorney to get assistance managing final affairs and so that you or your attorney can file the will with the state’s probate court.
• Trust documents. Also make sure you know where any of your spouse’s trust documents are filed (if they have any) and share those with your attorney as well to ensure the terms of the trust are executed. Legal guidance is important even if you yourself are the trustee.
• Insurance policies. Make sure you know where copies of your spouse’s insurance policies are so you can terminate them or have them transferred to your name only for jointly held property like a home or automobile. And if your spouse has a life insurance policy, which names you as the beneficiary, you’ll still need to present a death certificate to file a claim in order to receive benefits.
• Property deeds. Know the location of deeds to any real estate holdings held by your spouse, so you can update the deeds to any properties you hold jointly upon their death. This will be relatively easy to do if you have a joint tenancy with rights of survivorship that automatically transfers the property’s ownership to you.
• Automobile titles. You will need to transfer automobile titles to your name as well if those titles are held jointly or if your spouse has left any vehicles to you, so make sure you know where those titles are as well.

Short-Term Financial Needs & Bills

If your spouse was a major contributor to the family income, you will need to think about how much money it will take to get you through the first three months or so until you can settle the estate and start receiving any benefits owed to you. Consider funeral costs, regular bills, and living expenses. If you do not have sufficient emergency cash saved up, you may be able to use credit cards to bridge the gap, access joint financial accounts, quickly receive life insurance proceeds, or negotiate with creditors for an extension on some payments.

Inventory Assets

Make sure you have a full inventory of your spouse’s assets, including those jointly held by both of you:

• Checking accounts
• Savings accounts
• Retirement accounts
• Stocks and bonds
• Annuities
• Life insurance policies
• Real estate holdings
• Value personal assets like jewelry and art
• Automobiles

Even if you share joint accounts with your deceased spouse, you will need to notify financial institutions of their death. Most bank accounts carry automatic rights of survivorship, which means you should have full access to the funds in jointly held accounts upon the death of your spouse. Most financial institutions will require a death certificate to make you sole owner of accounts, however.

If your spouse is sole owner of any accounts, the financial institutions will release funds to the account’s named beneficiary with presentation of a death certificate and proof of the beneficiary’s identity. Your spouse may also have established accounts as Payable on Death (POD) or Transferable on Death (TOD) to you or another beneficiary. If no beneficiaries are named, the executor of your spouse’s estate will handle the distribution of assets.

Taxes

As a surviving spouse, you may have to file multiple tax returns. If your spouse was an investor, self-employed, or a partner in a business, these can be quite complicated. You yourself may qualify for a special filing status for the two years following your spouse’s death. There are also special tax regulations related to the types of income you may receive after your spouse dies, including insurance proceeds, retirement plan distributions and Social Security survivor benefits. The advice of a tax professional and wealth manager can be beneficial.

Giving

It may not be long before you start thinking about giving away your spouse’s possessions, making charitable gifts, or sharing benefits you receive with other family members. However, these are not decisions to be made lightly. The best idea is to wait until you have a clear understanding of the estate and your own future needs, and you are better prepared emotionally to make major decisions.

Long-Term Financial Needs

One of the most important responsibilities you have is planning for the future of yourself and your family. Once you have taken care of the immediate tasks, think about:

• Your future income needs and how to meet them
• A new spending and savings budget
• Readjustments to your investment portfolio
• Your children’s education funding plan
• Your retirement plan
• Your own estate planning

Thinking about how to prepare financially for the death of a spouse is not easy. Our death of a spouse checklist contains more detail about the tasks and decisions involved. Your wealth advisor at Kayne Anderson Rudnick is also always available to provide additional information and guidance, tailored to your specific situation.

Let KAR Help with Your Estate Planning

One critical task following the death of a spouse is ensuring your own estate is in order. If you do not have an estate plan in place, it is time to get in touch with a financial advisor and estate attorney. And even if you do have an estate plan, the death of your spouse likely necessitates a review of your last will and testament, trusts, and financial holdings, particularly if your spouse was the beneficiary of any of your assets.

KAR’s wealth advisory team is available to provide additional information, guidance, and support tailored to your specific situation. Contact us today.