Estate Planning After Loss: What Surviving Spouses Need to Know
My late father was an estate planning attorney who really enjoyed his work. He often said it was because every day and every client was unique, and his mission was to help them through many stages of their lives. As a trust officer, I share that experience – particularly with our married clients. Though their situations and relationships are unique, one of the most significant transitions for all occurs when the first spouse dies. Everyone is at a different stage of preparation when this happens, so we do our best to help our surviving spouse clients through the next steps of life.
The surviving spouse will be overwhelmed and will need help from the trusted people in their lives – a combination of family, friends, and professional partners such as attorneys, accountants, caregivers and trustees – to gather information and documents and make final arrangements according to the deceased spouse’s wishes.
Documents are Essential
The deceased spouse’s most recent documents such as the last will, trust, automobile titles, financial account statements, property deeds, etc. will be reviewed to determine what the assets are, their value at the date of death, who owned the assets at the date of death, and where they should go. Liabilities will also need to be documented; mortgage, credit card, utility and other bill payments may be set up for auto-pay from a bank account and may require the deceased spouse’s password and/or laptop to access and update. Some questions to expect are: Were the assets held individually? Jointly with their spouse or others? Or were they titled in the name of a trust? And who are the designated beneficiaries of retirement accounts or insurance policies? Will an estate tax return be required?
Saying Goodbye
The first major event after a death is often a funeral or memorial gathering. The deceased spouse may have included a burial and/or memorial plan in their will – perhaps prepaid. A funeral home will notify Social Security and order a batch of death certificates.
We recommend ordering several certified copies as some financial institutions won’t accept a digital version. The certificates and documents mentioned above will be used to transfer each of the deceased spouse’s assets to their designated new owner – whether it’s their surviving spouse, a friend or family member, or a charity.
Now What Do I Do?
Finalizing a loved one’s financial affairs is a journey that can take a long time. When assets and property have found new homes, and taxes and final expenses have been paid, the surviving spouse might find themselves in unfamiliar territory. They may have always deferred to their late spouse when lifestyle, investment and estate planning decisions were made. This new stage of life is an opportunity to think about what they want to do – where to travel, where to invest, where to give – and to lean on their trusted people for guidance along the way. Everyone in this circle plays a part to help the surviving spouse become a thriving spouse. Like my father, I consider it a privilege to be a helping hand on this journey.
Kate McGinn, ATFA is a Trust and Charitable Services Officer. She received her Accredited Trust and Fiduciary Advisor (ATFA) certification from Campbell University. To speak with Kate McGinn, please contact our office at (503) 292-1041 or via email at info@allentrust.com.
Disclosure: The information provided in this writing is for general informational purposes only and does not constitute as financial or legal advice from Allen Trust Company and Allen Capital Management. Readers are encouraged to consult with a qualified financial or legal expert to assess their individual circumstances and make informed decisions based on their specific situation.