Financial Help for Widows: How to Navigate Money Matters After Losing a Spouse

No matter when it happens, losing a spouse is an incredibly challenging thing to go through. Besides being emotionally taxing, dealing with so many details can feel overwhelming, as everything seems to demand your attention all at once. Not only must you notify friends and family members and make funeral arrangements — you must also start to plan the next phase of your life, including your personal finances. Feeling uncertain about what steps to take next is completely normal.

At Team Hewins, several of our team members specialize in providing financial help for widows. We understand that this time of loss and transition can be incredibly tough. That’s why we’re here to offer support and guidance. We’re deeply familiar with the issues and concerns that surface after losing a spouse as well as how to address them. Below, we’ll share some resources and guidance for widows to help them through this difficult time. Remember, you’re not alone. We’re here to walk this journey with you.

Assemble Your Team

Financial planning in the wake of a loss can seem overwhelming, but you don’t have to go it alone. In fact, one of the most beneficial things you can do shortly after losing a spouse is to surround yourself with professionals who provide legal and financial help for widows. Together, they’ll be able to help you prepare for what’s to come and navigate each step.

You should inform your financial advisor, estate attorney, and CPA (or, if you’re not already working with these professionals, you may want to hire them). In addition to offering guidance on their respective areas of planning specialty, they can work together to help craft and execute a plan of action.

Read More: What to Look for in a Financial Advisor: 6 Essential Qualities

Of course, beyond having professionals who can help you navigate financial and legal issues in the wake of a spouse’s death, it’s also important to have a personal support system — close friends, family members, and maybe even a mental health professional who can lend a sympathetic ear and provide emotional aid when you need it the most.

Get Organized

There’s a lot that happens after a spouse’s death — and while it might feel intimidating to think of everything you’ll have to do, it will seem more manageable if you break it down step by step. Fortunately, this is one of the key ways that professional advisors provide financial help for widows.

Meet with your financial advisor so they can help you coordinate what needs to be done next. This will likely include these tasks:

• Gathering your estate planning documents, such as your trust
• Notifying financial institutions, life insurance companies, and Social Security (more on that in a bit)
• Working with your CPA on the filing requirements in your spouse’s year of death
• Understanding upcoming expenses and changes in income
• Revisiting your retirement plan

After listing all of these items, your team of professionals can explain the process for each one–the information they will need from you, what your involvement will be, and how long it will all take. If there’s anything you’re not clear on, ask questions. After all, that’s what your team is there for.

Contact Relevant Institutions

As we mentioned earlier, one of the most critical steps to take after a spouse’s death is to notify the proper institutions of their passing. While having to explain your loss repeatedly to representatives of these institutions can be draining, professionals who offer financial help for widows will be happy to assist you.

Should you decide, your financial advisor can provide help by:

• Calling the life insurance provider to facilitate a smooth conversation when discussing important matters
• Notifying retirement or brokerage plan administrators
• Ensuring you’ve covered all of your bills
• Interpreting and providing guidance on any documents or mail you receive

This can be especially helpful if administrators need to hear details about the circumstances of your spouse’s death that can feel too painful to rehash yourself.

Military Benefits for Widows

Losing a loved one who served in the military can be overwhelming, but there are several widow’s benefits designed to offer financial support and assistance during this challenging time:

• Survivor Benefit Plan (SBP): As a service member’s surviving spouse, you may qualify for a monthly income to help your family cope with the financial loss of their passing. To be eligible, they must have been enrolled in the SBP at the time of their passing. You will need to submit a claim to the Defense Finance and Accounting Service along with the necessary documentation, such as a death certificate. It can be a complex process, but it’s there to ensure you have some financial stability.
• Dependency and Indemnity Compensation (DIC): Administered by the Department of Veterans Affairs (VA), DIC is financial aid for widows of service members who have died in the line of duty or from a service-related condition. Eligibility depends on the circumstances of the death and your financial situation. To apply, you’ll need to complete a VA Form 21-534EZ and provide proof of death and marriage, and any relevant service-related documents.
• VA Burial Benefits: These burial benefits help cover funeral and related expenses for service members and include allowances for interment and plots, as well as a headstone or marker. You will need to apply through the VA and submit the necessary documents to verify your loved one’s death and military service.
• Support from Military-Specific Organizations: Organizations such as the Tragedy Assistance Program for Survivors offer valuable support during this difficult time. You could receive counseling, peer support, and benefits guidance, which can help ease the burden of paperwork and emotional strain.

Get Help Understanding the Estate Plan

Ideally, you and your spouse will have created an estate plan prior to their passing. If so, carrying it out should be fairly straightforward. If not, the team of professionals you’ve assembled can help you figure out the next steps. Reviewing your estate documents — such as your trust — will help you understand where and to whom your spouse’s assets will go.

The time it takes to wrap up an estate can vary depending on the complexity, but it can take one or two years. The process can take even longer if there was not a trust in place. In that case, the estate would have to go through probate at an additional expense. If there are any ambiguities or disagreements about the distribution of assets, family members and other beneficiaries may contest the will, which often kicks off a court process that can be lengthy and costly.

Plan for Your Financial Future

Once you are ready, revisit –– or, if you haven’t already done so yet, create –– your personal financial plan. When your spouse passes away, you may experience a disruption in your income and expenses that you will have to adjust for to make sure that you will be able to maintain your quality of life. For example:

• If you and your spouse both received Social Security benefits, you will not be able to continue to receive both benefits going forward. However, if your spouse’s benefit was larger than yours, you will now receive that amount as a Survivor’s benefit.
• Additionally, if your spouse was receiving a pension or annuity payments, you should know whether there is a Survivor’s benefit attached to it. Some may not offer a survivor’s benefit but others provide a partial amount up to a 100% survivor’s benefit.
• You will likely have some unexpected expenses such as funeral expenses.

Along with revisiting your income and expenses, some of your planning goals may have also changed.

• If you still have a mortgage, you might consider paying that down.
• If you feel that you have ‘too much house,’ you might consider moving or downsizing.
• Perhaps you want to start funding your grandchildren’s education to give them the best opportunities in life.

Working with a CERTIFIED FINANCIAL PLANNER™ professional during this time will help to alleviate some of the uncertainty because they will help you to adjust your plan as needed. Whether it’s through developing a new budget or making changes to your investment strategy, your financial plan will play a vital role in making your goals more achievable. And that will help you focus on what’s important to you.

Although thinking about the future at a time like this can seem intimidating and overwhelming, planning is one of the most important elements of financial help for widows and can ultimately bring with it a great deal of assurance. Once you know you’ve achieved financial wellbeing — and will be well taken care of in any number of different scenarios — many of your anxieties about the future can be calmed.

Even if you find that you’re not currently in a position to reach all of your financial goals, making the necessary changes now can help ensure that you do in the future.

Managing Your Finances Moving Forward

Facing a future without your spouse can be a daunting reality, especially when it comes to managing finances. Here are some steps to help you navigate this transition:

1. Assess Your Financial Situation: Begin by taking a close look at your finances—your income, expenses, assets, and liabilities. Understanding where you stand financially is the first step in making informed decisions.
2. Create a Budget: Crafting a budget that aligns with your new financial reality can provide clarity and control. Focus on essential expenses, set realistic goals for the future, and take advantage of resources for widows to help manage your finances.
3. Seek Professional Advice: Expert advice can be invaluable. Team Hewins understands how to help a widow manage complex financial situations after a spouse’s death, and offers CERTIFIED FINANCIAL PLANNER™ professionals who can create a personalized plan, address your concerns, and guide you through decisions regarding investments and savings.
4. Review and Update Your Financial Documents: It’s important to revisit and update your property deeds, car titles, insurance policies, and other financial documents to reflect your current situation.
5. Explore Support Networks: Joining support groups for widows can provide practical advice as well as emotional comfort. Connecting with others who have faced similar challenges can lead to valuable insights and a sense of community.

These thoughtful steps and resources can help you safeguard your financial future with greater confidence and support.

Update Your Own Estate Plan

Once the assets in your spouse’s estate have been distributed, you may want to review and potentially update your own estate planning documents.

Your estate attorney and financial advisor can help you compile the essential estate planning documents if you haven’t done so yet. These include a durable financial power of attorney, healthcare directives, and a living will. They can also help you revise any existing documents. This is especially important after the death of a spouse or any other major life event: marriage, remarriage, or a family birth, for example. You should also update any investment or retirement accounts where your spouse is listed as beneficiary even if you have a trust. Because trusts do not dictate how your retirement accounts are distributed, updating your beneficiary designations is very important.

This will ensure your wishes are clear and will help prevent potential complications.

While it may feel morbid thinking about topics such as these at the moment, it’s the best way to ensure that your wishes are carried out and that your loved ones will be taken care of after you pass.

Helpful Resources for Widows

During this challenging time of navigating money matters after the loss of a spouse, having access to valuable resources can help to ensure you receive the support and information you need. In addition to the tips and guidance shared earlier, we’ve compiled a list of reputable websites that offer specialized help for individuals facing the loss of a partner.

These resources cover a range of topics, from emotional support to financial guidance and estate planning. We encourage you to explore these websites to further empower yourself as you rebuild your financial future. Remember, it’s essential to seek professional advice and assistance from your team of specialists while using these resources as supplementary tools.

Grief Support and Counseling:

• Website: https://www.griefshare.org/This offers online grief support groups and resources to help you cope with the emotional challenges of losing a spouse.

• Website: https://modernwidowsclub.org/  

This nonprofit organization provides support and resources for widows. It aims to empower and connect widows through various means, including online communities, local chapters, events, and educational resources.  

Get Peace of Mind in a Difficult Time

While losing a spouse is never easy, it doesn’t have to feel overwhelming, either. With support from close friends, family members, and professionals that offer financial help for widows, you’ll likely feel more at ease in the moment and in control of your future.

And if you’re looking for a trusted financial partner to be at your side, look no further than Team Hewins. With professionals who specialize in estate planning and financial planning for widows, we’ll help you prepare for the future, whatever it may bring.

Team Hewins, LLC (“Team Hewins”) is an SEC-registered investment adviser; however, such registration does not imply a certain level of skill or training, and no inference to the contrary should be made. We provide this information with the understanding that we are not engaged in rendering legal, accounting, or tax services. We recommend that all investors seek out the services of competent professionals in any of the aforementioned areas. Certain information provided herein is based on third-party sources, which information, although believed to be accurate, has not been independently verified by Team Hewins. Team Hewins assumes no liability for errors and omissions in the information contained herein. Nothing contained herein may be relied upon as a guarantee, promise, assurance, or a representation as to the future.