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| _____ | Know where the important papers and documents of your family are kept and why each one is needed. See FSHEC15; FSHEC130. |
| _____ | Find out the burial preference of your spouse. The plan can be a simple arrangement or a detailed set of written instructions. See FSHEC108. |
| _____ | Take turns with your spouse to pay bills, keep track of expenses, and balance the checkbook. It is important that both spouses know how much it costs to run a household. |
| _____ | Find out how much your family is worth. You can determine this by adding up what you own and what you owe. The difference between the two totals is how much your family is worth. See FSHEC49. |
| _____ | Help your spouse prepare the income tax returns. Learn about your family income, expenses, taxes, depreciation, and savings. Also, learn about information you or your tax preparer need to file income tax forms. |
| _____ | Establish your own “credit identity” or credit history to help you get emergency or routine loans in case you lose your spouse. Both spouses should have their names on the credit card that is used frequently, or two credit cards, one in each name. See FSHEC41; FSHEC91. |
| _____ | Study your net worth statement and indicate whether real or personal property is owned individually or jointly. The form of ownership determines who inherits the property at the death of a spouse and what has to be done to transfer any titles. |
| _____ | Set aside one day a year for you and your spouse to review your financial and legal situation. |
| _____ | Know where your husband’s Will is kept. A properly planned and executed Will can reduce the cost and time of settling an estate, helps to avoid family quarrels, and insures that property will be distributed according to your wishes. See FSHEC15; FSHEC47. |
| _____ | Review the property and casualty, health, and life insurance coverage with your insurance agents. Make sure it is adequate and appropriate. See FSHEC77. |
| _____ | Know the survivor benefits of your spouse’s pension plan and whether you will be eligible, as a widow, to participate in the group health insurance program of his employer. |
What to Do After Losing a Spouse
After the loss of a spouse, it is hard to concentrate and visualize long-term goals. Some experts advise widows to postpone making major decisions, such as selling the family home or moving to a new location, for at least six months to a year.
Work to manage details that require immediate attention. When necessary, ask a person you trust to help you. Keep records of when you applied for a benefit and when it was received.
Below is a list of tasks grouped according to a suggested time schedule. Some tasks may be completed before or after the listed time period. Each family situation will be different.
Immediate
| _____ | Locate burial instructions, if any. Make funeral or memorial arrangements. |
| _____ | Prepare an obituary notice. |
| _____ | Notify relatives, close friends, and business associates. |
| _____ | Arrange for someone to stay in the family home during the funeral. |
| _____ | Locate important family papers. You will need your spouse’s Will, military discharge papers, your marriage certificate, your spouse’s birth certificate, and the social security numbers for each family member. |
| _____ | Get enough copies of the death certificate. A death certificate will be needed for each claim that is filed, transferring financial accounts and titles, and transferring securities such as certificates of deposit, government bonds, and stocks. Gençrally, the funeral director can order copies. There is a charge for each copy. Some claims require an original, others only a copy, of a certified death certificate. You can save by asking “up front” if a photocopy is acceptable. |
| _____ | Open checking account in your name. |
| _____ | Notify your spouse’s employer. |
Within the First Four Weeks
| _____ | Prepare a short-term budget. Keep track of expenses to see where money is being spent. |
| _____ | Establish an estate checking account for receiving any funds and for paying bills. |
| _____ | Pay bills that need immediate attention. You may want to wait until all the claims have been filed and the waiting period has ended before paying any creditors. Do not, however, jeopardize a good credit rating. |
| _____ | Notify all IRA and Keogh accounts. |
| _____ | Change registration on motor vehicles. |
| _____ | Seek competent legal advice. An attorney can advise you on what legal actions need to be taken (e.g., whether it is necessary to file a will for probate), help you settle an estate, tell you what your tax responsibilities are, and assist you in revising your will. Note: Before hiring an attorney, be sure to discuss “up front,” the fee for his/her services. |
| _____ | File spouse’s Will. A Will must be filed in probate court in the county and state where the spouse was a resident at the time of death. Generally, a Will needs to be filed within 10 days. |
| _____ | Report death to the Social Security Administration and apply for benefits. When applying for benefits, bring all the necessary documents. There are two benefits: a lump-sum death benefit and a survivor benefit. The lump-sum death benefit is $255, if the surviving spouse was living with the beneficiary at time of death. The survivor’s monthly benefit depends on the earnings history of the deceased, age of the children, and age of the widow(er). |
| _____ | If a spouse was a veteran, contact the Veterans Administration and begin benefit proceedings. Among benefits are burial in a national cemetery (excluding Arlington National Cemetery), a burial flag, and a headstone or grave marker. |
| _____ | Notify creditors. Note outstanding bills. If there are outstanding bills, check whether any accounts were insured. The two most common insurance coverages are mortgage life and credit life insurance. |
| _____ | Contact insurance companies and file claims. Each insurance claim must be accompanied by a statement of claim and a death certificate. Note: The claim must be completed by the person legally entitled to receive the proceeds. |
| _____ | Inform any trade union, professional organization, or fraternal organization that your spouse belonged to about his death. Request information about insurance policies or other survivor benefits. Check with your spouse’s employee benefit, retirement, or pension plan administrator about survivor benefits. |
First Two or Three Months
| _____ | Pay medical and hospital bills. |
| _____ | Begin probate proceedings, if necessary. |
| _____ | Begin disposing of your spouse’s personal possessions. |
| _____ | Change names on joint credit card or charge accounts to your name. |
| _____ | Apply for credit in your name. |
| _____ | Review your insurance coverage. Check to see if the coverage is appropriate and adequate. |
| _____ | Transfer securities into your name. |
Within Six Months
| _____ | Change beneficiaries on insurance policies and retirement plans of your spouse as well as on your own policies or plans. |
| _____ | Transfer titles on real estate property. If they are not changed, it could create legal problems in selling or transferring the property at a later date. |
| _____ | Prepare a new Will. |
| _____ | Change the name on utility bills and directory listings. Check whether there is a charge for changing name on an account. Note: If you live in a small community, it may not be necessary to change the name on some accounts. |
Six Months to a Year
The remaining tasks are filing federal and state estate tax returns, filing federal and state individual tax returns, completing probate, and making major decisions.
Most likely it will not be necessary to file federal and state estate tax returns. If the value of a taxable estate exceeds $1,000,000 (for 2002 and 2003), estate tax returns must be prepared. The returns must be filed within nine months after the death of a spouse.
Federal and state individual income tax returns are due at the same time as they would be due if a spouse were still living. The due date is April 15 for federal and May 15 for Arkansas returns, unless an extension is requested. Generally, the filing status for the year a spouse dies is married filing jointly.
After six months or a year, a widow can begin thinking about major changes: selling the family house; moving to a different location; investing proceeds from a life insurance policy; and looking for a job.
A Word of Caution to Widows
Widows are prime targets for swindlers. Three common “con games” are claims that a spouse has left an unpaid bill, placed an order for merchandise, and missed paying a final insurance premium. If a widow is approached by an individual asking for payment of a bill, merchandise, or an insurance premium, she should not pay the charges until the claim can be verified. She may also want to file a report with the Better Business Bureau, the Attorney General’s office, or your local police department.
Periodically, the Attorney General’s office cautions Arkansans to use care when dealing with door-to-door salespersons who offer to repair driveways, roofs, gutters and sidings of their houses. The usual victims of this “con game” are widows and older people. Before signing a contract with a door-to-door salesman, a widow should check with the Attorney General’s office to see if any claims have been filed against the salesman and whether an unscrupulous individual is operating in the state. If a widow’s house needs repairs, she can arrange to have the work done by a reputable local firm.
Most women do not feel comfortable about making decisions. The reasons may range from lack of confidence or financial skills to the traditional belief that it is the husband’s responsibility to handle the financial affairs of the family. If a widow has¹had very little experience in making investment decisions, she could become a target for bad investment advice. Consequently, a widow needs to select her financial advisors carefully.
Money is more than an “economic good.” Emotional meanings can also be attached to it. Money could be used unknowingly to compensate for the loss of a spouse. For example, some widows might react to the loss of a spouse by refusing to spend money, while others might go on a spending spree and spend their inheritances within a short period of time. Widows who use money to “make up” for the loss of a spouse may want to seek help to separate the emotional trauma from money issues.
Concluding Remarks
There are at least three things that a spouse needs to cope with the family’s financial and legal affairs. A spouse needs information about family income and expenses, savings, debt, survivor benefits, property ownership, and insurance, good records (i.e., family, property, tax and financial records), and good financial and legal advice.
It is important that married couples, of any age, prepare to manage the financial and legal affairs. Being prepared to manage alone will make it easier if you lose a spouse either through death or divorce.
References
Additional material is available from your county Extension office. The following fact sheets are listed on pages 1-2.
FSHEC15, Important Family Records: What to Keep and Where
FSHEC36, Getting Started on an Estate Plan
FSHEC40, Ownership of Property
FSHEC41, Managing Credit
FSHEC47, What Is A Will?
FSHEC49, Preparing Family Net Worth and Income Statements
FSHEC51, Safe Deposit Box Inventory
FSHEC75, A Sample Filing System
FSHEC77, Managing Risk
FSHEC91, Credit Help for Arkansans: Names and Numbers to Know
FSHEC108, Funerals: Pre-Planning Makes Sense
FSHEC130, Household Inventory
2002. Originally prepared by Dr. Betty J. Sundling, Retired Extension Family Economics Specialist. Revised by Dr. Judith R. Urich, CFP, Family Resource Management Specialist.
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