No one wants to think about something happening to someone we love, but it’s important to be prepared. If you were to become a widow tomorrow, would you know what to do?
Here, we share some questions to ask yourself in order to prepare for widowhood should it happen.
Do You Have a Trust in Place?
If you and your spouse do not have a trust, consider drawing one up in order to control where your assets go now, and in the future. A trust ensures assets are protected and disbursed to the right heirs. You can have both a will and a trust, but while a will takes effect after one’s passing, a trust can be used both during life and after one’s passing. Without a trust, it can take longer to get closure, and the details about how assets should be passed on can get messy in the process.
If you do have a trust, make sure it’s up to date by working with a qualified estate attorney to get all the legalities in place.
What Benefits Are Available to You?
Understanding your benefits is another important aspect in preparing for the possibility of widowhood. Things like Social Security, life insurance, pensions, and annuities should be assessed ahead of time so that you're not struggling to make difficult financial decisions immediately after loss.
If your spouse is still working, there may be other employer-sponsored benefits available as well. Work together with your loved one to make a list of all the benefits either of you will receive in the event of widowhood as well as the information needed to access these resources. As difficult as it may be, talking about these benefits ahead of time can help you both feel prepared if widowhood were to happen.
Do You Have Access to All Financial Account Information?
One of the hardest parts of widowhood is moving forward without the support of your spouse. The best way to prepare for this possibility is to make sure both spouses have access to important financial account information including checking and savings accounts, retirement plans, and other investments. At a minimum, both spouses should have access to the account numbers and any login information. Also keep in mind that in some cases, settling an estate may require a birth certificate and/or marriage certificate (even if you are divorced), so it’s important to keep these in a safe and accessible location.
Additionally, understanding how these accounts are titled (joint, individual, or trust), as well as who is listed as the beneficiary, are crucial aspects of estate planning. Having joint ownership of all accounts, or listing each other as beneficiaries, can help the assets transfer smoothly by avoiding probate.
What Does Your Spending Plan Look Like?
Life after widowhood will be challenging, but a detailed spending plan can help ease the transition by alleviating the stress of making day-to-day financial decisions. Start by creating a current budget, if you don’t have one already. Together, you and your spouse can discuss the types of expenses that will either be added or removed from the budget if widowhood were to happen. It may seem strange in the moment, but it can be an incredible aid when planning for the future.
Special attention should be paid to debts like mortgage payments, monthly utilities, car payments, credit card debt, and other loans. Understanding how these debts will be managed in the event of widowhood is crucial to creating a sound financial future for the surviving spouse. The last thing either spouse wants to do is leave behind debt that their loved ones can’t manage. Planning ahead can help alleviate this burden and provide comfort to both spouses knowing that their partner is going to be okay on their own.
Do You Have a Trusted Advisor?
Having a strong support system can carry you through widowhood and give you the strength to move forward. Part of that support system should be a trusted financial professional.
If there is one spouse who tends to handle all financial matters, make it a point to introduce the other spouse to the financial team. Widowhood is a vulnerable time and it’s vital that both spouses feel comfortable reaching out for help with important financial matters. If one or both spouses don’t trust the advisor, it may be necessary to reevaluate the relationship.
Your well-being is of the utmost importance during this process, so don’t be afraid to interview several financial professionals before choosing the one you trust the most.
You’re Not Alone
As difficult as this process is, preparing for the unexpected is always better than trying to pick up the pieces on your own after a loss. Our Black Walnut Wealth Management team has experience working closely with clients to navigate the challenges detailed above, helping to make this complex situation more straightforward.
If you’d like to discuss your financial plan or any questions you have, schedule a 15-minute introductory meeting by calling us at (231) 421-7711 or visit our Contact Us page to schedule online.
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