10 Financial Steps to Take After a Spouse’s Death

The passing of a spouse is a traumatic event, and unfortunately often leaves the surviving spouse with a long list of practical tasks, in addition to grieving and planning for a different future than envisioned. 

What to Do After a Spouse Dies

The amount of work that goes into closing out a spouse’s affairs after death may be surprising. Here’s a financial checklist for what to do after a spouse dies. 

1. Get Certified Copies of the Death Certificate

You’ll need certified copies of the death certificate in order to close accounts, file claims and register the death with government agents. It’s recommended to request at least 10 copies. Typically the funeral home can help with this, or you can order them from the vital records office in your state. It typically takes a few weeks to receive, and the cost varies by state. 

1. Organize Essential Documents

Managing someone’s estate can be complicated and requires organizing what could be a substantial amount of paperwork. Gather the following documents and keep them together:

• Identification
• Funeral plans
• Will and testament
• Bank account information
• Investment statements for all accounts, including retirement accounts
• Insurance policies
• Property deeds and titles
• Trust documentation
• Other records relating to property or belongings 

Some of these documents may be stored with a trusted professional, such as a lawyer, or in a safe deposit box. 

1. Report the Death to Social Security

Funeral homes typically notify the Social Security Administration (SSA) of someone’s passing, but ultimately it’s your responsibility to ensure they are informed. Check with the funeral home or reach out to the SSA if you’re not sure if this has been done. 

In addition to a lump-sum death payment, you may be eligible for monthly survivor benefits from Social Security. This requires you to be 60 or older (or 50-59 if you have a disability), have been married for at least nine months before your spouse’s death and didn’t remarry before age 60 (50 if you have a disability). There are other circumstances in which you may be eligible regardless of age or length of marriage, such as if you are caring for a child of the person who passed away.  

1. File a Life Insurance Claim

To receive benefits from a life insurance claim, you’ll need to notify the life insurance company. If you have a local agent, they can help you through the process, and most companies have a number to call. You’ll need the death certificate and policy information, and you may need to provide some additional paperwork – check with the life insurance company representatives for details. 

Once your claim has been filed, the company will review the claim then connect with you about the funds. You may be able to choose how this is paid out, or you may want to talk with a financial advisor about getting something set up that works for your situation. 

1. Review Insurance Policies

You’ll want to review and adjust your insurance policies, ensuring that you are the primary policyholder listed so that your coverage won’t lapse. This includes:

• Auto insurance
• Home insurance
• Health insurance

You’ll also want to review your life insurance policies to ensure that you have designated a beneficiary who isn’t your spouse. 

1. Address Bank and Investment Accounts

You’ll need to get in contact with financial institutions where your spouse had accounts, whether those were individual accounts or joint accounts. They will ask for a death certificate and then can help you with whatever you’d like to do next. 

Many accounts carry automatic rights of survivorship, which means if your name is on the account you will become the sole owner. If your name was not on the account, funds will be released to the named beneficiary on the account once the death is confirmed. 

You may want to ask about opening an estate account. This can be used by the executor of the estate or representatives to manage all the expenses associated with your spouse’s assets, such as paying off debts, paying taxes and distributing property based on the will. It helps track everything and keep it all separate from your personal finances. 

1. Contact Lenders

Are spouses responsible for the deceased’s debt? It depends. In general, you are responsible for shared debt, such as when you co-sign a loan, are a joint account holder or when state law dictates that certain debts are shared. If it is personal debt, it should be paid off using funds from the estate. Different states handle debt repayment differently; some state laws require that survivors are paid first and allow debts to go unpaid while others do not.

Debt collectors can reach out to you about the deceased’s debts, but that doesn’t necessarily mean you are obligated to pay. Ask questions to learn more about it; debt collectors cannot say that you must pay with your own money or tell you that you are responsible for the debt if that’s not the case. Ask for the details in writing and talk with a lawyer about if you are responsible for paying the debt. 

1. Notify Current and Former Employers

Contact your spouse’s current and former employers to let them know of the death. Former employers may have a retirement plan that you’ll need access to. Current employers can help you with not only retirement plans, but also any additional paychecks that should be coming your way, as well as benefit continuation, such as health insurance. You’ll also want to be sure you receive tax documents, as you will be responsible for filing on behalf of your spouse. 

You will also want to notify your employer; this is a life event that will trigger the opportunity to review your benefits to ensure you have appropriate health insurance plans and beneficiaries. 

1. Review and Pay Bills

Bills can feel overwhelming when a spouse passes, but it’s important to stay on top of your bills and budget for short-term expenses, such as funeral expenses and lawyer fees. 

It may be beneficial to work with someone you trust to review your expenses for the next 30-45 days and determine how you will pay for them. While you may be anticipating a life insurance payout, it may not come in time. Determine if you have enough cash on hand to meet your needs or if you should turn to credit cards or discuss negotiations with creditors. Through negotiating, some creditors may give you the opportunity to delay payments until a death benefit payout.

1. Protect Their Identity

Identity theft after death can be a serious issue; identity thieves can get access to information and take advantage of the gap in time between someone’s death and when all financial institutions and government agencies are informed. 

Here are some things you can do to protect your spouse’s identity:

• Send a copy of the death certificate to the IRS (potentially with their final tax return)
• Send a copy of the death certificate to one of the three major credit bureaus (Equifax, Experian or TransUnion). Tell one and the others will be informed.
• Cancel their drivers license.
• Send their passport and a copy of the death certificate to the federal government to have their passport cancelled. You may include a letter requesting the passport be returned to you if it has sentimental value. 

If their identity is stolen, there are steps you can take to report the identity theft. It starts with an Identity Theft Report; additional actions can be taken depending on the type of identity theft. 

Get Assistance From a Professional

Dealing with the loss of a spouse is difficult in so many ways. You shouldn’t do it alone. Contact your Farm Bureau agent to get help navigating this time in your life and determining what comes next.