What is it?

Even if you’ve always handled your family’s finances, you may be overwhelmed by the number of financial matters you have to settle in the weeks or months following your spouse’s death. While you can put off some of these tasks, others require immediate attention. If you’re uncertain where to start, begin by organizing. You’ll have to find the records and paperwork you need to apply for benefits, set up systems to organize those records and other information you receive, and determine your short-term need for income. Afterwards, you’ll be ready to start settling your financial affairs with the help of personal and professional advisors.

Getting organized

Gather records

To settle your spouse’s estate or to apply for insurance proceeds or government benefits, you’ll need several documents. Locating these documents (and applying for certified copies of some of them) should be your first step in getting your finances organized.

To apply for life insurance proceeds, you’ll need a certified copy of your spouse’s death certificate (and possibly their life insurance policy). To apply for Social Security benefits, you’ll need to provide proof of death (a death certificate), proof of marital relationship (a marriage certificate) and proof of age (a birth certificate).

Set up a phone and mail system

After your spouse dies, you may have difficulty concentrating on tasks, partly because of grief and stress and partly because you simply have too much to do. To keep track of details, set up a phone and mail system to record incoming and outgoing calls and mail. For phone calls, keep a sheet of paper or a notebook by the phone and write down the date of the call, the name of the caller and a brief description of what you talked about. For mail, write down who sent each piece, the date you received it and the date you sent mail in return, if at all.

Set up files

You know the importance of setting up a filing system if you were ever frustrated because you couldn’t find an important document when you needed it. You’ll be organizing your financial affairs in many different areas, so set up a file for each topic you are working on.

For instance, you may want to set up separate files for estate records, insurance, government benefits, tax information, important documents, child-care information and credit accounts. Anytime you receive a letter or important document, put it in the appropriate file. If you can’t keep the original, make a copy. In addition, remember to keep copies of any letters you send out. It might be a good idea to go to a copy center and mail things weekly to save time.

Mary Beth received a letter from her insurance company requesting more information on a claim she had filed for her spouse’s hospital stay shortly before his death. She sent the company the information the next day. A few weeks later, she got a letter from the hospital demanding payment from her because her insurance company refused to pay the claim because of a lack of information. After calling her insurance company again, Mary Beth realized that they had never received the letter she had sent them regarding the claim. Fortunately, she had a copy in her insurance file and was able to fax it right away.

Make a phone list

If you don’t already have one, you should make a list of the names and phone numbers of organizations, professional advisors and friends, and post it near your phone. For example, the list may include the numbers of your health insurance company, your attorney, your financial advisor, your insurance agent and friends who can give you advice.

Evaluate short-term income and expenses

You may have some immediate expenses to pay when your spouse dies, such as funeral costs, transportation costs and regular bills. Start by making a list of all debts you will have to pay in the next 30 days. Then determine whether you have enough money to pay those debts. If you do not have sufficient emergency cash saved up, don’t panic. If you know money will be coming in from insurance proceeds or an estate settlement, there are several ways to proceed. First, use credit cards to pay what you can, or consider taking a cash advance against the card, if necessary. You may be able to get life insurance proceeds within a few days, and you may be able to delay other expenses for 30 days or more by negotiating with creditors. This will give you the chance to apply for the benefits to which you are entitled and to find out when you will be likely to receive them.

If you decide to use credit cards, use those with the lowest interest rate first, and watch out for cash advance fees or other charges.

Things you should do right away

Get advice

Getting expert advice when you need it is essential if you want to make good financial decisions. After all, you are probably doing many things for the first time, such as filing a life insurance claim or settling an estate. In fact, an attorney is one of the first people you might contact after your spouse dies because they can help you go over the will and start estate settlement procedures. Your funeral director can also be an excellent source of information and may help you get death certificate copies and apply for Social Security and veterans benefits, among other things. You may also wish to contact a financial planner, accountant or tax advisor for help with your finances. And don’t overlook the help of other widows or widowers; having been through it before, they may be able to provide you with valuable information and support.

Notify others

It’s a personal decision who you notify when your spouse dies. You will probably want to contact first the people who are close to you and anyone who may help you with funeral preparations. Then, you’ll want to contact people or groups who will help you file for benefits to which you are entitled, such as your spouse’s employer, life insurance companies and government agencies. Finally, you may want to contact important financial advisors, then creditors. Remember, you don’t necessarily have to notify everyone yourself; ask a friend or family member to help you. Use the suggestions in the following table as a guide, making modifications where you see fit:

When you notify an individual or organization that your spouse has died, make sure you understand what to do next. For example, letting the Social Security Administration know that your spouse has died is not the same thing as applying for survivor’s or parent’s benefits. You’ll still have to file a claim (in most cases) and provide supporting documentation. In addition, while you shouldn’t feel pressured to notify others, some time limitations do exist. For more information, see Questions & Answers.

Pay bills

When you’re grieving, it’s easy to forget to pay bills. Whenever you receive one in the mail, put it in a safe (but visible) spot so that you won’t forget to pay it. You may want to set up a log to record what bills you’ve received and what payments you’ve sent out. If you get any letters or phone calls from creditors asking for money, don’t ignore them. Contact the creditor right away and arrange for payment.

Be aware, however, that some con artists will contact the recently widowed and ask them to pay for items that their deceased spouse supposedly ordered before their death. Or they will send phony invoices for services that were supposedly rendered in connection with the spouse’s death. Before sending money to any creditor, get a written statement of the charges and investigate the claim to make certain it’s genuine.

File insurance claims

Life insurance benefits are not automatic; you have to file a claim for them. If you have an insurance agent, contact them to begin filing a life insurance claim. If you don’t have an agent, contact the company directly. Although most claims take only a few days to process, contacting an insurance agent should be one of the first things you do if you are the beneficiary of your spouse’s policy. Remember that your spouse may have owned other policies in addition to their primary individual life insurance policy. Check with your spouse’s employer, look through their records, and contact creditors to see if your spouse owned any group life insurance policies.

IMPORTANT DISCLOSURES