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HOW TO MANAGE MONEY WHEN YOU’RE WIDOWED

After the death of a spouse, adjusting is always difficult. Grief can feel overwhelming, and it can be almost impossible to worry about practical things at first. Unfortunately, at some point, you will have to think about things like finances after the loss of a spouse.

Here are some some top tips on how to manage money when you’re widowed.

Take Over The Bills

If your partner took care of the bills, get them in your name as soon as possible to avoid accidentally getting late payment fees. Collect up all the bills and check when they’re due, and how much you’ll owe. Make sure you can afford to pay.

If your bills were paid from your spouse’s account, these won’t be paid as normal, because the bank will have to freeze the account. Update the bill payment details as soon as possible to make sure these bills are paid.

Change any utilities or other commitments that were in their name to yours, and consider taking their name off anything you held together.

Collect Any Death Benefits

If your partner had life insurance, collect it to help you with money while you arrange your other finances. If your partner was killed in an accident, you might be able to claim compensation, which will also help. Speak to a lawyer to find out if you have a claim.

You might be entitled to pension income too. If you’re over 60, or are under 60 but have children under 16 living with you, you could also be eligible for survivor’s benefits. A probate registry will be able to advise you on wills, and any inheritance and other money you may be able to claim.

Get The Death Certificate

After a death, the death needs to be registered, so you get the death certificate and can be issued copies. You’ll need several copies of the death certificate to send to financial institutions, such as the life insurer, credit card companies, or your mortgage holder.

Organize Any Financial Documents

Make a list of all of your spouse’s bank accounts, brokerage accounts, retirement plans, insurance policies, loans, credit cards, and mortgages. Get the most recent statement from each of them. With up to date information, you can prioritize contacting them to inform them of the death and make arrangements to put everything into your name.

Find copies of joint tax returns too, as well as your marriage certificate. You’ll need these too to sort out your finances. Change the title and registration documents of any cars that your spouse owned into your name.

As unpleasant as it is to think about, your deceased spouse could be vulnerable to identity theft. Some thieves target those who have recently died. Change all their personal identification numbers and passwords for bank accounts, mutual funds, computer security systems for investments or finances, and credit, debit, and ATM cards. Cancel credit cards that you held jointly and apply for new ones in only your name.

Don’t Make Any Big Financial Decisions

You might feel tempted to make some rash decisions after the death of a spouse, such as deciding to sell your shared home or the family business or investing money from life insurance payouts.

Making a choice like this while you’re still grieving and feeling emotional is not a good idea, as you won’t be thinking clearly. Instead, wait a few months to make any big decisions. Be wary of anyone who pushes you to invest with them. As nasty as it is, there are those who will prey on the recently bereaved as a way to secure investors.

Take advice from friends and relatives with a pinch of salt too. They will likely mean well, but what worked well for them may not work for you. Wait until you feel better able to be rational.

If you weren’t the one who usually handled the household finances, it might be smart to find a financial adviser to help you take over managing the money. Ask your friends, your accountant, or lawyer for suggestions to find someone reliable and honest who can give you unbiased advice to help you get on track with managing your finances on your own.

If you’re now down to a single income, it’s also sensible to learn to cope with a smaller budget. Take a hard look at your finances and make sure you can afford your current lifestyle on your new income.

Cut back on any unnecessary spending if you can and make sure your finances are in order to care for you and your remaining family.

Hopefully these tips will help you to manage money when you’re widowed.

How to Manage Money When You’re Widowed