Financial Planning - What to Do When a Spouse Dies

What To Do When a Spouse Dies

In the first days after the death . . .

1. Try to find instructions for the funeral. They may be in a will or a separate letter.
2. Order a dozen certified copies of the Death Certificate from the County Clerk's Office.
3. Have someone stay at home during the funeral. Burglars read obituaries to learn when a house will be unoccupied.

Within the first two weeks. . .

1. Have your attorney review the will and file it in probate court.
2. Collect the documents needed to claim death benefits and value the estate. These include bank, employee benefit and brokerage statements, your marriage certificate and both of your birth certificates.
3. Apply for death benefits. Call your insurance agent, your spouse's employer and your local Social Security Office.

Within the first month . . .

1. Keep a record of your cash flow.
2. As insurance and other benefits come in set aside the money in short-term C.D.'s or money market funds.

Within the first six months . . .

1. Review your own will and change beneficiary designations on insurance policies or retirement plans that name your spouse. Also, change names on joint billing accounts or credit cards.
2. If you are an executor or administrator of the estate, notify creditors and satisfy debts.
3. Check bills and refer suspicious claims to your lawyer.

Between six months and one year . . .

1. File any taxes the estate owes. File Federal estate taxes within nine months of the death if the estate is larger than noted below*. You must also pay the estate income taxes due April 15th every year the estate is open.
2. Start to plan for your future. Begin to make decisions that you have postponed including whether to sell your home and how to invest your inheritance.

* The estate tax exemption is $2 million in 2006 through 2008 and will increase to $3,500,000 in 2009.