The death of a spouse is an emotionally overwhelming experience. Making important decisions and managing financial matters amidst grief are among the most challenging things you must endure as a surviving spouse. However, addressing these matters head-on is essential to honoring your spouse’s wishes and securing your economic stability.

A 2024 study from Thrivent, a financial services organization, found that 51% of 422 surveyed widows across the U.S. experienced economic difficulties following their spouse’s passing; 41% had not engaged in any financial planning or discussions before the loss, and 39% carried more than $25,000 in debt afterward.

This financial checklist can help grieving spouses and supporting family members understand the priorities and put order to the chaos of settling an estate after the passing of a loved one.

STEP 1: Obtain Multiple Copies of the Death Certificate

Secure several official, certified copies of the deceased spouse’s death certificate. Funeral directors usually assist with this. Death certificates are required when notifying financial institutions, government agencies, and insurance companies.

STEP 2: Notify Social Security and Other Government Agencies

Promptly alert the Social Security Administration (SSA). This will trigger the cessation of benefits to the deceased partner and allow the surviving spouse to inquire about survivor benefits. Additionally, this prevents any overpayments that may result in future complications with benefits.

STEP 3: Inform Employers and Review Benefits

Notify the deceased partner’s current or former employers as appropriate to confirm any outstanding details, such as unpaid wages, accrued vacation, or other benefits due. Additionally, inquire about life insurance policies, retirement plans, or pensions that may provide survivor benefits.

STEP 4: Gather and Secure Important Documents

Collect all pertinent documents, including a will and marriage certificate, trusts, insurance policies, and financial statements. These are necessary to settle the estate and access accounts. Store them in a secure but accessible place. 

STEP 5: Consult an Estate Attorney

Consult an estate attorney for guidance through probate, the legal process for getting an estate’s affairs in order. The attorney will also help the surviving spouse interpret the will, address legal challenges, and distribute assets according to the deceased spouse’s wishes.

STEP 6: Contact Financial Institutions

Notify banks, credit unions, and investment firms. This allows the surviving spouse to retitle joint accounts, close individual accounts, and update beneficiary information. Obtain a current statement of all accounts to provide a clear picture of financial standing.

STEP 7: File Life Insurance Claims

If the deceased partner had an active life insurance policy, the surviving spouse should initiate the claims process through the insurers. The surviving spouse must furnish a death certificate to complete the required claim forms. Life insurance benefits can provide immediate financial relief during this challenging transition.

STEP 8: Address Outstanding Debts and Liabilities

Inform the three major credit bureaus, Equifax, Experian, and TransUnion, of the spouse’s death. Request a copy of the deceased spouse’s credit report to identify existing debt and prevent identity theft. With an up-to-date accounting of all financial balances, compile a list of all debts, including mortgages, car loans, credit cards, and other liabilities. Determine which debts are joint and which are solely in the deceased spouse’s name. An estate attorney can help surviving spouses understand their responsibility in these matters and the best approach toward resolving debts.

Step 9: Review and Update Your Financial Plan

A surviving spouse should assess their financial situation, reflecting on their new circumstances and accounting for changes in income. Enlisting a financial advisor at this stage, if not before, can be especially helpful in creating a new budget and adjusting the investment strategy and retirement plan.

STEP 10: Update Legal Documents and Beneficiary Designations

The surviving spouse must update their will and other personal legal documents to reflect their current wishes for their estate. This includes power of attorney, healthcare directives, beneficiary designations for 401(k)s, individual retirement accounts (IRAs), and life insurance policies.

STEP 11: Cancel or Transfer Services and Subscriptions

Review, amend, and cancel the deceased spouse’s services, subscriptions, and memberships as necessary. Transfer essential utility, phone, and online services to the surviving spouse’s name.

STEP 12: Address Tax Obligations

A tax professional can explain the tax implications surrounding the death of a spouse and help the surviving spouse stay compliant with state and federal laws. For example, the surviving spouse must file a final tax return that includes the deceased spouse. Proper tax planning can safeguard against unexpected liabilities, such as estate taxes (depending on the estate’s size).

STEP 13: Seek Support

Surviving spouses should ask for support from family, trusted friends, and professional counselors during this difficult time. Taking care of emotional needs is as vital to a surviving spouse’s overall well-being as addressing the financial responsibilities that arise from the passing of their life partner.

Losing the love of your life and navigating the aftermath is undoubtedly challenging. As a surviving spouse, you can ease the burden and remain clear on your financial directives by systematically addressing each step with this checklist. Lean on guidance from funeral homes, estate lawyers, tax professionals, and financial advisors to sort through the details and create a path toward a healthy economic future. For a complimentary review of your finances, contact an SHP financial advisor today.

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