Blog — Sisters for Financial Independence

Sep 29

Sep 29 A Financial Checklist for When a Spouse Dies

You can never be truly prepared when a spouse or partner dies. Don't be afraid to ask for help during this time. Keep in mind that the grieving process takes time and takes on so many different forms. On top of the heavy loss, there's also the need to contend with the current to-do list of life. This list focuses on the financial aspect, but as we know life is more than just about money, so please don't hesitate to find yourself the necessary therapy to help with your healing. This list is by no means exhaustive, but can help you focus some of your tasks.

1. Contact your attorney, accountant, and financial advisor.

Grief causes confusion and it can influence your financial decision making ability. Work with professionals who can help you navigate the financial implications of a death. You may not need all 3 professionals, but having at least one in your corner can guide you in the right direction.

2. Contact the Social Security Administration

Depending on the situation, you may be entitled to Social Security Survivor Benefits for you and your dependents. This is especially critical if you suddenly lose an income and have young children that need to be taken care of. Learn more from ssa.gov.

3. Notify Your Spouse's Employer (Current & Past)

Let your spouse's current employer know of the death. Ask their HR to inform you of any benefits that your dependents may be entitled to. Many people sign up for group life insurance at work so see if your spouse opted into one. You can also check past paystubs to see if there's a line item for its deduction. Also check to see if there are retirement plans or survivor pension benefits from current and past employers.

4. Locate the Will

This may be in a lockbox or with your attorney. Schedule time for a reading to settle pending issues with the estate. A will can be a good thing since you and your partner may have already agreed to certain financial decisions which means you won't have waste mental and emotional energy on certain things.

5. Notify Your Employer

The death of a spouse may trigger a "life event" which may allow you to make benefit decisions such as signing up for your employer's health insurance coverage for you and your dependents. Your employer may also have specific programs to help you in the grieving process so take advantage of those.

6. Notify All Insurance Companies

Notify life, health and car insurance companies so that proper paperwork changes are managed and forms are completed. This could include removing your spouse from the policies. This could include filing for insurance payments which takes a few weeks to process.

7. Send a Letter to All Credit Bureaus

Contact all credit bureaus to get a copy of your spouse's credit report so that you aware of all debts. Ask to have a notification placed on the report "Deceased - do not issue credit" so that new credit isn't taken under their name. This can be a good step to ensure you aren't accumulating any debts outside of your knowledge and there is no identify theft issues that can affect the family's finances.

8. Call the Financial Aid Office (College, Private School, Daycare)

A change in family income may qualify your child for more assistance. See what's possible especially if you are in the middle of a school year. This can also apply if you have children in private school or daycare. Don’t forget to also file the FAFSA so that it has updated financial info if you have a child in college.

9. Notify Banks, Investment Accounts, Credit Card Companies

Notify banks and anywhere you hold join accounts to have your spouse's name removed or close accounts that were in your spouse's name only. This can help reduce identity theft and help you have a more manageable account list.

10. Update Beneficiaries, Wills, and Insurance Policies

Make updates as soon as you are able to assign new beneficiaries. This includes updating retirement plans, the will, the guardianship documents, etc. Some of these are easy to put off, but they can save the family time and hardship down the line.

For deaths related to COVID-19 - If the death was related to Covid, check to see if you qualify for COVID-19 Funeral Assistance under FEMA.