As most of you know, I lost my husband to a sudden heart attack almost 22 years ago, when he was 44. It was a nightmare to me and mine and his entire family. Losing one’s significant other is one of the most stressful of all possible losses, even if you’ve had some time to emotionally prepare for it, which I didn’t. And while it can be extremely difficult to do more than put one foot in front of the other, losing a spouse can also bring financial changes into your life, whether it’s the loss of a Social Security check, the breadwinner’s paycheck, or the breadwinner’s support team. Below, please find a checklist of some of the things you’ll need to consider during this very challenging time.
- Find out whether you are eligible for Social Security survivor benefits.
- Depending on how long you were married and how old your spouse was at the time of their death, you may be eligible for Social Security survivor benefits.1 You may also be eligible for a one-time death benefit of $255. Your children, up to the age of 18 or out of high school can also be eligible for survivor Social Security benefits. Or if you are both receiving Social Security, one of the benefits will stop.
- To report a spouse’s death, contact the SociaBl Security office at 1-800-772-1213.
- it’s a good idea to estimate how much you’ll be eligible to receive in benefits. Make SSA.GOV your best friend. Get your benefits statements from there.
- Find out whether life insurance is available.
- If your spouse had life insurance, you need to find a copy of the policy or contact the insurance provider or agent who sold it to you, to see how you can gain access to the policy.
- Most employers of full time employees offer a low-cost life insurance policy that pays out a multiplier of the employee’s annual salary. Check with your spouse’s employer to see whether such a policy is available and to get contact information for the insurance company.
- In most cases, life insurance proceeds are tax-free.2.
- Gather and list your bills.
- If your spouse paid some or all of the bills or had utilities in their name, it’s important to have these bills and services transferred into your name. Maybe it is already automatically paid – make sure that you have access to them.
- Identify and collect all relevant documents a financial professional will need to see.
- Before speaking with a financial professional, gather up documents like recent Social Security statements, recent, pay stubs, if working. Profit and Loss statement from the business if self-employed.
- It’s better to err on the side of bringing too much than not enough. Gather financial statements, tax returns, pension documents, beneficiaries listed on all retirement and life insurance accounts/policies, and anything else that may help a financial professional get a better idea of your financial picture.
- Order MANY copies of the death certificate, which you’ll need in order to file for Social Security benefits, life insurance, and some pension benefits, etc.
- Reach out to these professionals during this time.
- This is a considerably stressful time for you, but reaching out to professionals such as a lawyer, accountant, banker, or financial professional can help you get an idea of next steps. Understanding your spouse’s will or the family trust can be a daunting task alone, but specialized professionals can assist you with making these decisions.
- Taxes due are still due even with a death in the family. Make sure you make tax preparation and estimated tax payments a priority!
- TAKE CARE of YOURSELF!
- Join a bereavement support group and/or hire a therapist to talk with as you go through this chapter in your life.
- Pamper yourself – whether it’s a spa day, massages, going to the gym more, walk with friends, more golf – you get the idea!
Though nothing can ease the pain of losing your spouse, having a solid financial plan and an understanding Financial Professional in place can allow you to focus on what matters most in the future.
Important Disclosures:
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult your financial professional prior to investing. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and cannot be invested into directly.
The information provided is not intended to be a substitute for specific individualized tax planning or legal advice. We suggest that you consult with a qualified tax or legal advisor.
LPL Financial Representatives offer access to Trust Services through The Private Trust Company N.A., an affiliate of LPL Financial.
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