Losing a loved one can be a traumatic experience, but the loss of a spouse or life partner is often devastating, regardless of whether their passing is sudden or expected. The grief and responsibilities the surviving spouse faces can be daunting. Oftentimes, the surviving spouse overlooks their own needs, which can lead to additional challenges down the road.
Grief can take many different forms and is intensely personal. The surviving spouse may feel like their family and friends do not understand their grieving process, which creates additional heartache and frustration. While grief can be overwhelming, it is essential to prioritize self-care and life restructuring during this challenging time. The stages of grief are real, but so are the steps toward recovery and future planning. The following are some strategies from Forvis Mazars Private Client for your personal and financial health to help you as you navigate your grief.
1. Allow Yourself to Grieve
Grieving is a natural and necessary process. Give yourself permission to feel your emotions, whether it is sadness, anger, confusion, or even relief. There is no right or wrong way or time frame to experience grief. Allow yourself to cry, talk about your loved one, and express your feelings in a way that feels right for you.
2. Seek Support
You do not have to go through this alone. Reach out to friends, family, or support groups who can offer a listening ear and a comforting presence. Sometimes, talking to others who have experienced similar losses can be incredibly healing. If you find it difficult to talk to those close to you, consider seeking professional help from a trained counselor.
Social support is also important during the grieving process. Staying connected with family and friends is essential. Your community is a resource, and you should never be shy to ask for help.
3. Take Care of Your Physical Health
Grief can take a toll on your physical health. Ensure you are eating nutritious meals, staying hydrated, and getting enough sleep. Consider seeing your doctor for a physical to assess your health. Regular exercise, even if it is just a short walk, can help improve your mood and reduce stress.
4. Create a Routine
Establishing a daily routine can provide a sense of normalcy and stability during a chaotic time. Include activities that bring you comfort and joy, like reading, gardening, or spending time with pets. Having a routine can help you feel more grounded and give you a sense of purpose.
5. Understand What Comes Next
Finances can be a major source of stress, and if this is your first time having to handle your own finances, it can be daunting. Working with your advisors to understand what will happen with your finances, retirement accounts, etc., can provide reassurance and help to remove some of the burden you may be experiencing.
- Assets: Your financial advisor can talk through the changes in your retirement benefits and help you set up auto pay for ongoing bills. Working with your estate attorney or wealth strategist to understand your partner’s plan and what assets are available to you can help you understand your partner’s legacy. If you don’t have a team, this is an opportunity to establish one with advisors who have been hand selected to help meet your needs.
- Documents: Some financial tasks that need to happen immediately following the death of your loved one may seem overwhelming, so don’t be shy to ask for assistance. Start simply by gathering documents.
- Consult your estate attorney to review the will and provide guidance on next steps. You (or the personal representative of your loved one’s estate) will need the original will and multiple certified copies of the death certificate, as well as the Social Security number.
- Make sure to obtain copies of life insurance policies, as well as bank and brokerage account statements for personal and retirement accounts, and last year’s tax return.
- Banking: You will also need to work with the bank to review how your accounts are titled. Joint accounts can remain open for up to a year; accounts titled in your loved one’s name will be part of the estate, and the personal representative will be responsible for transferring funds and closing those accounts. The personal representative will also open a new account in the name of the estate to cover estate expenses, including the funeral and associated costs. Over time, you’ll deal with titles on major assets, such as homes and cars.
You’ll want to work closely with a financial advisor to assess your cash flow needs, investment allocation, beneficiaries, trusted contacts, and financial goals. If possible, try not to make any major financial decisions within the first six months to one year following the loss. It is essential to make informed decisions that support effective long-term planning for your ongoing financial needs.
6. Consider Your Financial Future
- Create a detailed budget that outlines your current income and expenses. This will help you understand your financial situation and plan for any changes.
- If you are eligible, understand how Social Security survivor benefits work and how to apply for them.
- Make sure you have an emergency fund in place to cover unexpected expenses.
- It may be helpful to work with your financial advisor or wealth strategist to navigate these considerations and create a comprehensive plan.
7. Refresh Your Legal Documents
While now may not seem like a good time to consider your long-term legal and financial future, it is a good time to make sure your loved ones are taken care of as you wish. A few considerations:
- Are your estate planning documents up to date? Do you have copies of the medical power of attorney and advanced directive (also known as a living will)? Have you shared the documents with a trusted person in addition to your attorney? Do your will, trust, and financial power of attorney need an update?
- Consider consulting with an estate planning attorney to make sure that all aspects of your estate are in order and that your wishes will be carried out.
- Do you need to establish new life insurance beneficiary designations? Same goes for retirement accounts and pensions.
- If you have a trust in place, who is the successor trustee?
- Take stock of any debts, including mortgages, car loans, and credit card balances. Understand what will happen to these debts and how they will be managed.
8. Consider Tax Return Filing Requirements & Changes
- A married couple can still file their tax return as married filing jointly or married filing separately in the year of a spouse’s death, but the surviving spouse will need to file as a single taxpayer in the following year, assuming that they don’t remarry. The tax brackets are different for married filers than they are for single filers, so be aware and don’t be afraid to do some extra tax planning after a spouse’s death. There is also the opportunity to file as a “Qualifying Surviving Spouse” if you don't remarry and have dependents that still live in your home. This filing status is available for the 2 years following your spouse’s death, and the tax rates are the same as “married filing jointly”
- Depending on your family’s net worth, you may want to consider filing a Form 706 Estate Tax Return. This is something that should be discussed with your tax advisor and possibly your estate attorney.
- There may be a period of estate administration while assets are being divided among beneficiaries. This may require a separate tax return and should be discussed with your tax adviser.
- A death of a spouse may change a trust that previously didn’t need to file a tax return into requiring one now. Make sure you review with your advisors and understand when a trust might have changed due to a death.
Conclusion
Taking care of yourself after the death of a loved one is crucial for your emotional and physical well-being. Remember that it’s OK to seek help and lean on others for support. Connecting with others is key. Your grief is personal and unique to you. Share your feelings and give yourself ample time and space to address your emotions and heal in a way that suits you best.
By prioritizing self-care and renewed financial planning, you can navigate through your grief and find a path toward restored hope for the future. Don’t delay your self-care. If you have questions, reach out to a Forvis Mazars Private Client professional today.
Forvis Mazars Private Client services may include investment advisory services provided by Forvis Mazars Wealth Advisors, LLC, an SEC-registered investment adviser, and/or accounting, tax, and related solutions provided by Forvis Mazars, LLP. The information contained herein should not be considered investment advice to you, nor an offer to buy or sell any securities or financial instruments. The services, or investment strategies mentioned herein, may not be available to, or suitable, for you. Consult a financial advisor or tax professional before implementing any investment, tax or other strategy mentioned herein. The information herein is believed to be accurate as of the time it is presented and it may become inaccurate or outdated with the passage of time. Past performance does not guarantee future performance. All investments may lose money.