Loss of a Spouse

Overwhelmingly, husbands handle the financial investments in U.S. homes. Often, wives don't even know what assets they hold jointly. So, when they're left to manage their own finances, they don't have the necessary information to make well-considered decisions. Go over all of your finances with your spouse and know where everything is.

When the spouse is no longer in the picture, the remaining spouse is under a great deal of stress and pressure, and will be for some time. Determine who you can trust at this time to make levelheaded decisions in your best interests. Surprisingly, it may not be the children or another family member since they may have conflicting interests. A lawyer (trustee) or a knowledgeable friend may be better options when you need impartial, sound advice.

Believe it or not, there are creepy people who read the obituaries and plan to burglarize the home, knowing that the family will be at the funeral. Someone should stay home to keep an eye on things.

If a spouse dies, leaving behind children under the age of 18 (22 if they're enrolled in college), the family is entitled to receive monthly Social Security checks for each eligible child, making it a lot easier to raise a family on your own. Notify the Social Security Administration at ssa.gov.

When a spouse passes away, the Social Security Administration must be notified immediately if the deceased was collecting monthly checks. The surviving spouse will be eligible to collect more from Social Security based on which spouse was paid the most each month. For example, widows may continue to receive benefits at their husband's rate. Also, obey the law and report your new status to the SSA ASAP. Click on this link to visit the Social Security web site at ssa.gov.

With the loss of a spouse, you may be concerned about being able to stay in your home. Consider a reverse mortgage, available to homeowners aged 62 and over. With a reverse mortgage, the bank sends you a check every month, you're able to stay in the home as long as you choose or are able and you can turn the equity in your home into living expenses every month.

The loss of a spouse is one of the most traumatic experiences we will ever go through. You may be in shock for months. This is not a time to make major decisions - to sell the house or pay off the mortgage from insurance proceeds. Give yourself time to recover from your loss before making any major decisions.

If you have a financial planner or broker, meet with this professional to get an accurate picture of your finances. Do not sign over control of your assets to anyone. Instruct your financial advisor to hold everything until you've weighed your options with a clear head.

As the surviving spouse, your old will, created with your husband or wife, will no longer apply. When you are able to make decisions that aren't based on emotion, make sure to have a new will drawn up for yourself to ensure that your wishes are known and followed.

If both spouses are living, visit a lawyer and make out a joint will. It doesn't have to be fancy and it won't cost a bundle. Choose an attorney who specializes in family law to make sure all the bases are covered. And while you're there, consider making a living will to ensure that your wishes are followed in a severe medical emergency, and to take the pressure off a spouse who may be unable to make critical medical decisions in such a time of crisis. Make sure that both wills stipulate that the remaining spouse is assigned power of attorney.

When a spouse dies, it is not the time to be deciding on a casket, flowers, and other matters related to the departed's farewell. If you make out your funeral plans ahead of time, your spouse's wishes will be respected, you won't make costly decisions under emotional stress and you won't have to worry about a lot of details while you've got other matters on your mind.

To collect on any term life insurance policy (payable upon the death of a spouse), you must provide a death certificate and proof that you are the named beneficiary on the policy (the one who gets the money). Notify the insurers as soon as possible and get the paperwork started. Even if you start right away, it can take several months to receive that check.

If you haven't made funeral plans before the loss of a spouse, bring a friend or family member with you when you talk to the funeral director. You'll need a reasonable, clear-headed, non-emotional person to help you make those difficult decisions that can add up to thousands of dollars.

Talk to your spouse about the purchase of a family burial plot and determine if your spouse even wants a burial. Today, many people prefer to be cremated, with their ashes spread over a beloved, favorite spot. Burial plots can be expensive and if you don't need one, don't buy one. If you do need one, buy it before you need it.