Dear Liz: What financial steps need to be taken right after your spouse dies?
Answer: Your attorney or accountant may have detailed checklists to guide you through the many tasks involved. In general, though, you’ll be settling the estate, notifying appropriate parties, signing up for any benefits and shutting down potential identity theft.
To start:
- Get 10 to 12 certified copies of the death certificate (ask the funeral home for these).
- Find any estate planning documents, such as a will or a living trust, to start the process of settling the estate. That may require opening a probate case at the county courthouse.
- If you don’t already have an estate planning or probate attorney, consider hiring one for help.
- Contact your spouse’s employer about any life insurance or retirement benefits, such as a 401(k) or pension.
- File a claim if your spouse had life insurance.
- Call Social Security at (800) 772-1213 to ask about survivor benefits. If you and your spouse were already receiving Social Security benefits, one payment ends at your spouse’s death, and you’ll get the larger of the two checks from now on.
- If your spouse served in the military, contact the Veterans Administration to inquire about additional benefits.
- Cancel your spouse’s health insurance.
- Contact banks, brokerages, lenders and credit card companies to inform them of the death and close accounts or transfer them to your name alone.
- Notify the three credit bureaus: Experian, Equifax and TransUnion.
- Delete or memorialize social media accounts.
There are a few things to avoid as well. A big one: Don’t give away money or assets prematurely. These may be needed to settle the estate or you may want more time to make good decisions. If you’re getting pressure from family members or anyone else, refer them to your attorney.
Be careful about making big changes, such as moving or selling a home, in the next year or so because grief can impair your decision-making abilities.
Business
How to pick a fee-only financial planner
Dear Liz, I have had a fairly predictable financial life.
May 20, 2018
Don’t try to do all this yourself. Let the attorney assist with estate-settling tasks and hire a tax pro to file your spouse’s final tax return. Also, consider talking to a fee-only financial planner. You may have options for payouts from retirement accounts, life insurance and Social Security, for example, and your choices could dramatically affect your future standard of living.
How to freeze your credit
Dear Liz: A few months ago you mentioned creating credit freezes that can be simply turned on and off at the customer’s convenience at no cost. However, you didn’t leave a website or an avenue to pursue a credit freeze with all three credit bureaus. Please provide more information on the steps in this process to achieve a credit freeze. It sounds like something I would like to try.
Answer: A credit freeze restricts access to your credit report and can be a good way to deter new account fraud. If someone tries to open a new account in your name, the lender won’t be able to pull your credit and thus is unlikely to approve the application.
Credit freezes do not affect your ability to use your credit cards or other credit accounts. You can temporarily thaw or lift the freeze any time you want to apply for credit. Placing, lifting and removing credit freezes is now free.
Experian’s credit freeze center can be found at https://www.experian.com/freeze/center.html.
Equifax’s is at https://www.equifax.com/personal/credit-report-services/credit-freeze/.
You’ll find TransUnion’s version at https://www.transunion.com/credit-freeze.
Just be sure to follow the instructions carefully and keep track of any personal identification numbers or passwords.
It’s not too late for Mom’s stocks
Dear Liz: My mother is 68. She has had a sizable amount of money in an old work 401(k) for several years now. Unfortunately, it has been stuck in the most conservative low-growth fund for more than 10 years during a time of great stock market growth. If she changed it to a more aggressive fund now, are there tax implications to consider, and would this be an unwise change at her age?
Answer: Ouch. The stock market as measured by the Standard & Poor’s 500 benchmark rose more than 250% in the last decade. Instead of more than tripling her money, her low-growth fund may have barely kept up with inflation.
She can’t get back those lost returns, but she could allocate her money more aggressively without having to worry about triggering taxes. Money in 401(k)s and most other retirement accounts is taxed only when it’s withdrawn.
Liz Weston, Certified Financial Planner, is a personal finance columnist for NerdWallet. Questions may be sent to her at 3940 Laurel Canyon, No. 238, Studio City, CA 91604, or by using the “Contact” form at asklizweston.com.
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FAQs
You've likely inherited a large portion of your spouse's assets. Gather relevant estate planning documents, such as a will or trust. Contact credit bureaus. Notify Equifax, Experian or TransUnion that your spouse is deceased, and any accounts held in their name should be closed.
What should be done immediately after the death of a spouse? ›
Here is what you need to do within a few days of the death of your spouse:
- Tell your family members and friends your spouse has died. ...
- Contact the Social Security Administration (SSA). ...
- If your spouse was an active or retired military member, contact the Department of Veterans Affairs (VA).
You've likely inherited a large portion of your spouse's assets. Gather relevant estate planning documents, such as a will or trust. Contact credit bureaus. Notify Equifax, Experian or TransUnion that your spouse is deceased, and any accounts held in their name should be closed.
What paperwork needs to be done when a spouse dies? ›
DOCUMENTS YOU MAY NEED: Death Certificates (5-6 certified copies), Social Security Card, Marriage Certificate, Birth Certificate, Birth Certificate for each child, Insurance Policies, Deeds and Titles to Property, Stock Certificates, Discharge Papers for a Veteran and/or V.A.
What do I need to take to the bank when my spouse dies? ›
Your valid ID, such as a state-issued driver's license or ID card, U.S. passport, or military ID. Proof of death, such as certified copies of the death certificate. Documentation about the account and its owner, including the deceased's full legal name, Social Security number, and the bank account number.
What not to do after your spouse dies? ›
Top 10 Things Not to Do When Someone Dies
- 1 – DO NOT tell their bank. ...
- 2 – DO NOT wait to call Social Security. ...
- 3 – DO NOT wait to call their Pension. ...
- 4 – DO NOT tell the utility companies. ...
- 5 – DO NOT give away or promise any items to loved ones. ...
- 6 – DO NOT sell any of their personal assets. ...
- 7 – DO NOT drive their vehicles.
Surviving spouse, any age, with a child younger than age 16, gets 75% of the worker's benefit amount. Child gets 75% of the worker's benefit amount. There's a limit to the benefits we can pay to you and other family members each month. The limit varies between 150% and 180% of the deceased worker's benefit amount.
What are the rights of a wife when the husband dies? ›
In the absence of a prenup or postnup, surviving spouses are guaranteed one-half of the community property, regardless of what their deceased spouse's will or trust says.
When a husband dies, does everything go to the wife? ›
Many people assume that the surviving spouse automatically inherits everything. However, this is not the case in California. When a person dies without a will in California, their assets are distributed to their family members according to the state's intestate succession laws.
Do I have to notify the bank that my husband died? ›
Financial institutions and other organizations to notify of a death. Report the person's death to banks, credit card companies, credit bureaus, and other financial organizations. And contact utilities and places where the person had memberships and subscriptions.
contact immediate Family and those close to you about the loss. Call family, friends, and spiritual counselors for emotional support. Update any key family members. Try to bring them together in person, by phone, or group email so that you may comfort one another and share information updates as needed.
Is the spouse responsible for debt after death? ›
If there's no money in their estate, the debts will usually go unpaid. For survivors of deceased loved ones, including spouses, you're not responsible for their debts unless you shared legal responsibility for repaying as a co-signer, a joint account holder, or if you fall within another exception.
Why shouldn't you always tell your bank when someone dies? ›
Amy explains that waiting to inform the bank allows a family member time to gather all relevant information, including details on life insurance policies and electricity and utility bills. After notifying the bank, the account will be frozen, meaning nothing can be taken out or deposited.
Do banks freeze accounts when spouse dies? ›
A deceased person's bank account is inaccessible unless you're a joint owner, a beneficiary of the account or the estate executor. Because joint ownership and beneficiaries can make a difference in how your bank account funds are distributed, planning is key.
Does money automatically go to spouse after death? ›
Joint bank accounts
If one dies, all the money will go to the surviving partner without the need for probate or letters of administration.
Can wife withdraw money from deceased husband's account? ›
Beneficiary rules
In other words, if an account is jointly held between spouses, the surviving spouse still owns the account, and the beneficiary can't access the funds while another owner is alive. The surviving owner may also change or remove the designated beneficiary.
Is it necessary to remove a deceased spouse from a bank account? ›
You don't have to remove a deceased spouse from a joint bank account, and your account will function normally. But many banks advise their clients to remove their spouse's name from their bank accounts when the time arrives.
How soon is too soon after a spouse dies? ›
After the loss of a spouse, there is no set time frame within which to start dating again. This is a personal choice that depends on what feels right for you and what you feel ready for. Everyone experiences grief and mourns in a different way.
