Managing finances after the death of a spouse is a headache those grieving shouldn’t have to endure. It’s unfortunately one of the realities of life, but it doesn’t have to be as painful if you develop a plan. Even if the death of a spouse isn’t something that you’re currently dealing with, setting up how to handle finances with your significant other should be headed off as soon as possible.
Taking Care of Insurance
Talking with your spouse about life insurance can be an uncomfortable subject. It is for the best that you discuss your current insurance policy with your significant other, or look at insurance policies in the unfortunate event you don’t have one. Deciding what insurance policy works best for both of you will be between you and your partner. You may want to evaluate the costs associated with death, and how to look after debts such as your mortgage. Before making any decisions regarding insurance, it’s best that you do your research. If debt is your biggest worry, the professionals at Money Expert advise that you could take out a policy that has decreasing premiums, as well as a decreasing payout as you work away your debt. There are a myriad of options and heavy consideration should be taken before choosing one.
Setting Up a Will
If you want to leave your spouse with any money that you’ve saved having a will is a good decision. You’ll want to leave your spouse as the sole beneficiary for your finances, as a court may decide to set aside some of your assets for your children until they are of the age of 18. Most partners decide upon using a mirror will, a will that reflects the other partners will and names them as the sole beneficiary. This way your finances won’t be entangled in legalities and your spouse will be able to use the money to take care of the finances they’ll undoubtedly incur. A joint will is not recommended because it can constrain your partner to the limitations set in the will.
Understand Household Finances
In a lot of cases, financial responsibilities can be divided among both partners. Explaining how to handle your responsibilities to your partner so they have the knowledge to take care of them when you’re gone is essential. If you want to uphold your bank privacy (most banks suggest that you do) you can leave the passwords to your accounts with a lawyer or with your will to avoid any further headaches. You’ll also be teaching your spouse how to handle these financial arrangements in the event that you won’t be around to take care of them anymore.
Be Careful With Your Money
Even if you have received a payout from an insurance policy in regard to the death of a partner, you need that money. The reason behind obtaining an insurance policy is to be able to take care of the financial burdens that come with being a sole-income household. Don’t be too ready to offer gifts or financial assistance to everyone. Being too trusting can sometimes be a symptom of grief, we need to depend on others in order to overcome the emotional obstacles that we have before us. Some crooked individuals may seek to take advantage of that grief and your assets in the chaos.
If you’ve had the same financial advisor for years and your significant other established a good relationship with them, continue to use their services. Even if this was a portion of the finances that your partner took care of, they created a relationship with this individual for a reason. Always do your research, and be cautious of what resources you trust. If you have a family to continue to look after this is especially true, as your financial resources are going to be used to look after their well-being.
If you end up being the sole earner in your household, chances are you’re going to need to re-evaluate the amount of money that you spend. You may need to decrease the money you spend, and setting up a budget to work with the money that you have is a must. If your significant other handled most of the finances call your bank and find out when specific payments are due. You can get assistance from family members that you trust in order to help you with this.
Losing your significant other and having to deal with the burden of financial responsibility isn’t ideal. If you can head off this headache, you should talk to your partner about getting life insurance as soon as possible. Set up a will where you both agree with the stipulations, and explain the various responsibilities that the other has currently. By having a plan of action in place you will be able to have more time to grieve and less time worrying about your finances.