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Are You Prepared for Widowhood?

Are You Prepared for Widowhood?

October 28, 2022
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Losing a spouse is painful to even think about, so it’s natural to avoid imagining such a devastating event. But the last thing you need in a time of grief is to worry about all the legal and financial implications accompanying the loss of your spouse. And considering the difference in life expectancies for men and women, widowhood is an unfortunate possibility that requires preparation.

We know it’s impossible to emotionally prepare for the loss of a life partner. But taking some time to answer the following 5 questions may help ease the financial burden if you ever find yourself in the difficult time of widowhood.

1. Have You Put 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. Be sure to ask your advisor about state laws when it comes to the differences between wills and trusts. For instance, in California, you must usually go to court to determine if a will exists and is valid, who are the decedent’s heirs or beneficiaries, etc., but property in living trusts can be transferred without going to court.

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. 

2. Do You Understand Your Available Benefits? 

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.  

3. 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. Maybe they were the one who handled all of the day-to-day financial matters and now you are stepping into this role for the first time in your life. It can be overwhelming to say the least. 

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 log-in 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 or individual), as well as who is listed as the beneficiary, are crucial aspects of estate planning. Having joint ownership on all accounts, or listing each other as beneficiaries, can help the assets transfer smoothly by avoiding probate. 

4. Do You Have a Reliable Spending Plan? 

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.  

5. Are You Partnering With a Trusted Advisor?

Having a strong support system will carry you through widowhood and it will give you the strength to move forward. Part of that support system should be a trusted financial professional. 

Whether you are working with a financial advisor already, or you are looking to hire one, take your time getting to know them and make sure you like working together. 

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

There’s no denying this is a difficult process. But remember: preparing for the unexpected is always better than trying to pick up the pieces after a loss occurs. At 1on1 Financial, we specialize in guiding clients along the path to financial well-being, strategically planning and preparing for a variety of scenarios—including widowhood. As our partner, you will benefit from our commitment to serving you as we would serve our own family. Our success is built upon developing lasting, meaningful relationships based on trust, integrity, and superior service.

We can help you and your spouse navigate the difficult decisions associated with the possibility of widowhood. As you take the next step in building a solid financial foundation, we are here to answer your questions. Call our office today at 909-981-1720 or simply click here to schedule a free 15-minute introductory phone call!

About 1on1 Financial

1on1 Financial is an independent financial advisory firm specializing in guiding working and retired professionals, executives, and business owners along the path to financial well-being. Founded in 1997, we use a team approach to help our clients accumulate wealth, generate income, preserve their life savings, and strategically plan for the distribution of their estate. With more than 50 years of combined experience in the financial services industry, we remain true to our fundamental mission: to provide personalized guidance, treatment, care, and service so our clients can gain control of their future and feel confident in their financial life.