Looking into the Financial Scene


While looking into the financial scene after the death of your spouse, you can assess the strength of your funding and plan accordingly. Weighed down by the unfortunate event, you may find it hard to deal with the legal affairs and complete the formalities. A little planning and professional assistance from the right source will help you go a long way.

  • Estimate, evaluate and go for the right option that will secure your financial future and guarantee a steady flow of cash, even if the sole provider of your family is no more.
  • Treat inherited account as your own.
  • Leave the traditional IRA account in your deceased spouse’s name.
  • Or still better, set up an A/B trust.

You can consider any of these to handle your finances, assure a steady flow of income and avoid certain taxes. Looking into financial Scene is the first necessary step that you should take to look forward to a new beginning.

Okay, how and where do I start?

Locate all the important documents which you need to sort things out. Get hold of the insurance policies, deeds, stock and bond certificates, bank and brokerage statements and most importantly, the will.

What should I do with the retirement money?

First, identify the retirement money which is available to you. Consult your financial adviser and check with him. Know which can be the most profitable method of taking possession of the money or distributing assets for you.

Count on your cash-flow needs.

Calculate. Death of your spouse is sure to bring with it a sharp fall in income. But, if you are working, you have fewer reasons to worry about. Make sure you have enough for the basics including mortgage, utility, food and medical expenses. Plan your further expenses or investments accordingly.

A complete statement of your net worth will be very helpful. This way, you will be able to know how much you have and how much you owe. The sooner you realize this, the better off you will be with your all those long-term and short-term spending needs.

What if my net worth is high?

Give setting up an A/B trust a serious thought and do it beforehand. Now that you know what the situations can be after the death of your spouse, plan for setting up a trust. This way, you will be able to leave more to your heirs and especially to children and secure their financial future.

Tell me more about it.

Two separate trusts can be created upon the death of the first spouse. The purpose of this type of trust is to keep some assets out of the estate of the surviving spouse. This results in exemption from the federal estate taxes upon the person’s death. Generally, up to $2 million can be placed in an A/B trust upon the first spouse’s death. The surviving spouse draws income earned on these assets for life. Upon the death of the surviving spouse, the assets are distributed to the beneficiaries, generally to the children.

Tread with caution where A/B trusts are concerned. Consult your financial adviser and see that the documents are drafted according to the requirements of your situation.

After the death of your spouse, the thought of managing your finances might be difficult and depressing at the beginning. It always is — on the one hand, you are trying to accept the fact and on the other, you have to go into the legal affairs to complete the formalities. But, this can be made easier if you take step-by-step measures.