Financial planning must involve both spouses
Q: May 3 is National Widow’s Day, and the death of a spouse can prompt challenges for continuing financial, estate and familial responsibilities the way a couple originally intended. After the death of a spouse, what should the surviving spouse do first to effectively manage finances?
A:
Compile a complete list of assets and where they reside.
Locating all assets quickly can be a challenge if you’ve not been predominantly responsible for the family’s finances.
Paying bills and managing the household budget doesn’t equate to being informed about brokerage accounts, life insurance policies or survivor benefits. If you don’t know your spouse’s passwords, gaining access to accounts may take longer than you anticipate, which is why it’s best to tackle this right away.
Q: Whom should I call with questions? A:
Your financial adviser should guide you through the difficult early days after the loss of a spouse. They can help navigate the transition and reduce the burden of getting your financial affairs in order. While most advisers are eager to help, you mustn't be afraid to ask questions or reveal what you don’t know. Vulnerability and trust is necessary for advisers to provide maximum support.
Q: What's the most common financial challenge you see widows and widowers face?
A:
When a spouse dies, it’s frequent to see the division of an estate cause tension within a family, and some family members even may attempt to manipulate the surviving spouse into deviating from the plans, values and expectations established by the couple. Widows not only are left to manage financial assets but also to support or assist their children, navigate disputes and honor their spouse’s wishes on their own. Proper estate planning can reduce opportunities for family members to take advantage of the surviving spouse. By establishing a trust, you can help ensure the deceased spouse’s wishes are followed while maintaining your relationship as a mom, friend, sister, etc., rather than a bank.
Q: As couples age, how should they prepare for the loss of a spouse?
A:
It’s important that both spouses be actively involved in financial planning for the family — not simply to know where your money is located but also to build a comfortable relationship with your adviser. You don’t want a stranger walking you through the emotional and financial trials that accompany death. This is why we ask that both spouses be present for annual financial review meetings at a minimum.