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Initial Steps to Take for Widows
Published Date : November 7, 2017
The death of a spouse can be one of the most stressful events you’ll ever experience. Even if it is expected after a long illness and you’ve left nothing unsaid, it can be a time of great sadness and mourning. Unfortunately, for many surviving spouses, the pain can be compounded by the stress of decision making and handling finances alone for the first time. The seemingly endless to-do list of tasks can feel overwhelming. While there are some actions that are best taken right away, there are many others that can be deferred until some time has passed and the healing process begins.
Where to start?
- Ask for help: Your Sand Hill Wealth Manager can provide guidance every step of the way. There are many financial decisions you will need to make that are best discussed first to determine what is best for your situation. Also, let your estate planning attorney and CPA know that your spouse has passed.
- Get multiple copies of the death certificate: Depending on the complexity of your joint financial lives, 10-25 copies should be sufficient. This may seem like more than you will ever need, but some financial institutions require originals and it is better to have too many than not enough.
- Contact the Social Security Administration: If you’ve given the Social Security number of your spouse to the funeral director, they will likely make this call for you. However, if they didn’t, you will need to call the SSA at 1-800-772-1213 soon if your spouse was receiving retirement benefits. Any benefits received in the month of the decedent’s death or later will need to be returned.
- Contact your spouse’s employer: Your spouse may have had stock options, company-sponsored life insurance, pension benefits or unpaid salary if still employed at the time of death. If your spouse had a retirement plan account, like a 401(k), the employer can help you begin the process of rolling those assets over to a spousal IRA.
- Put together a list of all financial assets: Hopefully this is something that you and your spouse compiled together, but if not, you will need to do a deep dive into your filing cabinet to gather the documents yourself. Collect all bank and brokerage statements and life insurance policies. Make a list of any real estate holdings, limited partnership investments and collections.
- Claim any life insurance benefits: Be sure you are clear on the options for how the benefits will be paid. Don’t commit to an annuity or any other option without first talking to your financial advisor.
- Rollover the IRA: If your spouse was over age 70½ at death, make sure the Required Minimum Distribution (RMD) for the year of death has been taken before December 31st or face a 50% penalty. If you, the surviving spouse, are the beneficiary, you can treat the IRA as your own in the subsequent years after if it is rolled over.
- Begin the estate settlement process: If you and your spouse established a revocable living trust, the trust document, plus any amendments, will outline what happens at the death of the first spouse.
What shouldn’t you do right away? It is best to wait to make any big life changes like what to do with the house or what you can give your kids. These are decisions that are best made after some time has passed and emotions are not so raw. Unless there is an urgent need to re-locate due to extreme home maintenance demands or for health reasons, you might consider waiting at least a year before even thinking about what to do with the house. Helping your kids should also be put on hold until you have a clear sense of your future needs and expenses.
While it will be a difficult time for sure, and it may feel like you are always signing paperwork, having a support team to help you after the death of a spouse is critical. Sand Hill has extensive experience with estate settlement so you can rely on us to shepherd you through the process and coordinate with all members of your financial team.
Articles and Commentary
Information provided in written articles are for informational purposes only and should not be considered investment advice. There is a risk of loss from investments in securities, including the risk of loss of principal. The information contained herein reflects Sand Hill Global Advisors' (“SHGA”) views as of the date of publication. Such views are subject to change at any time without notice due to changes in market or economic conditions and may not necessarily come to pass. SHGA does not provide tax or legal advice. To the extent that any material herein concerns tax or legal matters, such information is not intended to be solely relied upon nor used for the purpose of making tax and/or legal decisions without first seeking independent advice from a tax and/or legal professional. SHGA has obtained the information provided herein from various third party sources believed to be reliable but such information is not guaranteed. Certain links in this site connect to other websites maintained by third parties over whom SHGA has no control. SHGA makes no representations as to the accuracy or any other aspect of information contained in other Web Sites. Any forward looking statements or forecasts are based on assumptions and actual results are expected to vary from any such statements or forecasts. No reliance should be placed on any such statements or forecasts when making any investment decision. SHGA is not responsible for the consequences of any decisions or actions taken as a result of information provided in this presentation and does not warrant or guarantee the accuracy or completeness of this information. No part of this material may be (i) copied, photocopied, or duplicated in any form, by any means, or (ii) redistributed without the prior written consent of SHGA.
Video Presentations
All video presentations discuss certain investment products and/or securities and are being provided for informational purposes only, and should not be considered, and is not, investment, financial planning, tax or legal advice; nor is it a recommendation to buy or sell any securities. Investing in securities involves varying degrees of risk, and there can be no assurance that any specific investment will be profitable or suitable for a particular client’s financial situation or risk tolerance. Past performance is not a guarantee of future returns. Individual performance results will vary. The opinions expressed in the video reflect Sand Hill Global Advisor’s (“SHGA”) or Brenda Vingiello’s (as applicable) views as of the date of the video. Such views are subject to change at any point without notice. Any comments, opinions, or recommendations made by any host or other guest not affiliated with SHGA in this video do not necessarily reflect the views of SHGA, and non-SHGA persons appearing in this video do not fall under the supervisory purview of SHGA. You should not treat any opinion expressed by SHGA or Ms. Vingiello as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of general opinion. Nothing presented herein is or is intended to constitute investment advice, and no investment decision should be made based solely on any information provided on this video. There is a risk of loss from an investment in securities, including the risk of loss of principal. Neither SHGA nor Ms. Vingiello guarantees any specific outcome or profit. Any forward-looking statements or forecasts contained in the video are based on assumptions and actual results may vary from any such statements or forecasts. SHGA or one of its employees may have a position in the securities discussed and may purchase or sell such securities from time to time. Some of the information in this video has been obtained from third party sources. While SHGA believes such third-party information is reliable, SHGA does not guarantee its accuracy, timeliness or completeness. SHGA encourages you to consult with a professional financial advisor prior to making any investment decision.
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