David Lerner Associates: How to Organize Your Finances After Your Spouse Passes Away

Losing a spouse is a stressful transition. And the added stress of having to settle the estate and organize finances can be overwhelming. Fortunately, there are steps you can take to make handling these kinds of issues less difficult.

Notify others

When your spouse dies, your first step ought to be to contact anyone who is close to you and your spouse, and anyone who may help you with funeral preparations. Next, you should contact your attorney and other financial professionals. You'll also need to contact life insurance companies, government agencies, and your spouse's employer for details on how you can file for benefits.

Get advice

Getting expert advice when you need it is important. An attorney can help you review your spouse's will and start estate settlement methods. Your funeral director can also be an excellent source of information and may help you acquire copies of the death certificate and applications for Social Security and veterans benefits. Your life insurance agent can assist you with the claims process, or you can get in touch with the company's policyholder service department directly. You may also wish to speak with a financial professional, accountant, or tax advisor to assist you organize your finances.

Find important documents and financial records

Before you can start to settle your spouse's estate or apply for insurance proceeds or government benefits, you'll need to find essential documents and financial records (e.g., birth certificates, marriage certificates, life insurance policies). Keep in mind that you may have to acquire certified copies of certain documents. For example, you'll need a certified copy of your spouse's death certificate to apply for life insurance proceeds. And to apply for Social Security benefits, you'll have to provide birth, marriage, and death certificates.

Set up a filing system

If you've ever been frustrated because you could not find an important document, you already know the importance of setting up a filing system Begin by evaluating all important documents and organizing them by topic area. Next, set up a file for each topic area. For instance, you may want to establish separate files for estate records, insurance, government benefits, tax information, and so on. Finally, be sure to store your files in a safe but easily accessible place. This way, you'll be able to locate the information when you need it.

Establish a phone and mail system

During this stressful time, you probably have a lot on your mind. To help you keep track of certain tasks and details, set up a phone and mail system to record incoming and outgoing calls and mail. For phone calls, keep a sheet of paper or notebook by the phone and write down the date of the call, the caller's name, and a description of what you talked about. For mail, write down whom the mail came from, the date you received it, and, if you sent a response, the date it was sent.

Also, if you don't already have one, make a list of the names and phone numbers of organizations and people you might need to contact, and post it near your phone. For example, the list may include the phone numbers of your attorney, insurance agent, financial professionals, and friends– all of whom you can contact for advice.

Evaluate short-term income and expenses

When your spouse dies, you may have some immediate expenses to take care of, such as funeral costs and any outstanding debts that your spouse may have incurred (e.g., credit cards, car loan). Even if you are expecting money from an insurance or estate settlement, you may lack the funds to pay for those expenses right away. If that is the case, don't panic– you have several options. 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. And you can always ask the insurance company if they'll give you an advance. In the meantime, you can use credit cards for certain expenses. Or, if you need the cash, you can take out a cash advance against a credit card. Also, you can try to negotiate with creditors to allow you to postpone payment of certain debts for 30 days or more, if necessary.

Avoid hasty decisions

• 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. When you're grieving, you may be especially vulnerable to pressure from salespeople.
• Don't cave in to pressure to sell or give away your spouse's possessions. Wait until you can make clear-headed decisions.
• Don't give or loan money to others without reviewing your finances first, taking into account your present and future needs and obligations.

IMPORTANT DISCLOSURES

Material contained in this article is provided for information purposes only and is not intended to be used in connection with the evaluation of any investments offered by David Lerner Associates, Inc. This material does not constitute an offer or recommendation to buy or sell securities and should not be considered in connection with the purchase or sale of securities.

David Lerner Associates does not provide tax or legal advice. The information presented here is not specific to any individual's personal circumstances.

To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.

These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable– we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.

Some of this material has been provided by Broadridge Investor Communications Solutions, Inc.

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