You can lose your spouse in a number of unpredictable ways. Certainly death is a certainty at some point, but incapacitation and divorce are other examples of the loss of a spouse. The effect of such a loss on you is magnified if your spouse handled many of your financial matters on his or her own.
It’s really advisable to begin preparing for this loss now. Even if you’re young, such losses can occur at any time in life. I typically recommend that spouses have a monthly meeting to review finances. Hopefully that ensures that both spouses have a reasonable idea of their affairs if something were to happen. You can prepare for such meetings by thinking about the things that your spouse takes care of and that you’d have a hard time picking up if he or she suddenly died. You might also read a previous article on this topic to help you generate some ideas. Some common things to talk about are listed below. As you begin sharing information, it’s important to somehow capture it in a printed or electronic format. Be sure that both of you know where this information is kept and that you also alert your executor in the event you both die at the same time.
Professional Help. First, if you have professionals who know your situation, go to them to get all the help they can provide. Not only can they fill in some of your knowledge gaps, but they can also partially protect you from making poor decisions while your judgment is clouded with grief. Such professionals can include your financial advisor, your tax professional, your estate attorney and your spouse’s executor (although for many couples, this may be you).
Assets. Not only is this generally useful information, but you’ll need immediate access to cash to pay bills and meet other financial requirements. This part of the conversation includes such things as where the assets are, what the ownership arrangements are (joint tenants in common, individual ownership, etc.) and access information (such as passwords for online accounts).
Bills. It’s good to have an understanding of routine bills and how they’re paid. This may include bills that are automatically paid out of a checking account or by a credit card. If these things are not jointly owned, they may stop working. Also, credit card information needs to be updated from time to time to account for things such a new expiration date.
Life Insurance. You should file for benefits so that they’ll be paid out in a timely manner.
Social Security. Contact Social Security promptly so that they can make the necessary benefits adjustment. It will help to know your spouse’s Social Security number when doing this.
Health Insurance. Contact your provider promptly to eliminate payments that are no longer required for your spouse. If you’re on Medicare, contact them and also contact your supplemental insurance provider if you have an Advantage or similar enhanced insurance plan.
Safe Deposit Box. Often, many important documents are kept here and it’s a good place to check early on. If you don’t both have access to your safe deposit boxes, you should correct that to avoid having them sealed during probate. This might be a good place to keep the original copies of your wills and powers of attorney. Also your home deed/mortgage, car titles and other important documents could be centralized and protected in your safe deposit box.
Wills and Medical and Financial Powers of Attorney. For many couples, the surviving spouse has the powers of attorney and becomes the executor at the time of death. These documents should be in a known location that can be accessed by both spouses. Some couples use the safe deposit box for this and others prefer to keep such documents in a safe location at home. Some do both.
If it’s hard to find the time to get started on this, just imagine your situation if you lost your spouse tomorrow. What are some of the things you’d have trouble handling on your own? If you’d like some help thinking about this very important topic, we’d be happy to help you think this through. Please visit our website or give us a call at 970.419.8212 so that we can discuss this important topic in a no-charge, no-obligation initial meeting.
This article is for informational purposes only. This website does not provide tax or investment advice, nor is it an offer or solicitation of any kind to buy or sell any investment products. Please consult your tax or investment advisor for specific advice.