Wealth Planning Commentary – August 25, 2025

Coping Financially After the Loss of a Spouse 

Losing a spouse is one of life’s most difficult experiences, and it can leave behind not only emotional pain but also a host of financial responsibilities. Amid grief, the idea of sorting through documents, accounts, and decisions can feel overwhelming. Having a plan in place before that day comes can make a world of difference, ensuring that both spouses are on the same page and that the surviving partner knows where to turn for guidance. 

Planning as a Couple 

Wealth planning isn’t just about investments or taxes – it’s about clarity and support. We often recommend that even if one spouse takes the lead on the finances, the other spouse participates enough to understand the most important issues. When both spouses are part of the conversation, each partner understands the family’s financial picture and the role of their wealth manager. This preparation helps the surviving spouse feel more confident in the decisions that need to be made, even in the most difficult moments.  

Taking Control After a Loss 

After a spouse’s passing, there are immediate administrative steps: gathering account statements, insurance policies, tax returns, and legal documents; updating beneficiary information; closing accounts held solely in your spouse’s name; and notifying credit bureaus. Ordering multiple death certificates ahead of time can help streamline these processes, since some institutions require one to make changes. 

A strong financial team – including a wealth manager, attorney, and tax professional – can ease the burden by walking through each step at the right pace. Their guidance allows you to focus on grieving and healing while still moving forward with what needs to be done. 

Understanding Your Survivor Benefits 

Social Security survivor benefits, pensions, veterans’ benefits, and life insurance proceeds all need careful review. The choices you make about when and how to claim these benefits can affect your long-term financial security. Your wealth manager can help you evaluate these benefits after a death. However, it’s also a good idea to review these when both spouses are still alive. Switching to a different life insurance policy or social security claiming strategy could be more beneficial.  

Portfolio Transition 

The investment strategy often changes after a spouse’s death. The focus may shift toward preserving wealth and ensuring a stable income stream. Sometimes families also discover assets they weren’t fully aware of – an old pension, stock options, or even valuables tucked away. Having an organized plan ahead of time makes it much easier to track down and manage these surprises. 

Updating Your Estate Plan 

A spouse’s death is also a natural point to revisit estate planning. Wills, trusts, powers of attorney, and healthcare directives may need updating. Life insurance and long-term care policies should also be reviewed in light of your new circumstances. Creating an updated inventory of accounts and recurring expenses – and storing it securely with your wealth manager or attorney – ensures your loved ones know where to find important information in the future. 

Taking Time with Big Decisions 

While some tasks are urgent, others can wait. Many families find it helpful to delay major financial decisions, like selling a home or gifting money to children, for at least a year. If you receive a life insurance payout, consider setting it up for monthly distributions rather than taking the lump sum right away. This can help you adjust gradually and avoid feeling rushed into choices during an emotional time. Regardless of your decisions, you don’t have to go it alone. 

Please reach out to your wealth manager with questions about estate planning.