If Widowhood Happened Tomorrow, Would You Be Prepared?

By Greg Farrall, PPC®, CWS®, CPFA®

Thinking about the potential death of a spouse is probably one of the most heart-wrenching and uncomfortable things to do. But do you know what’s even worse? Being caught unprepared as you wade through what feels like insurmountable grief. And considering the difference in life expectancies of men and women, widowhood is a possibility you need to take seriously. 

While there is really no way to prepare emotionally for the loss of a life partner, you can prepare financially. Spending a little time and effort in advance to ensure you can answer the following questions will ease the burden if you find yourself in the excruciatingly difficult time of widowhood. So ask yourself, “If I were widowed tomorrow, would I be prepared?”

Do You Have a Trust in Place?

If your spouse doesn’t have a trust, they need to draw one up immediately. A trust ensures that your spouse’s assets are preserved and are given to the right heirs in a seamless way. Unlike a will, trusts allow the owner to determine how their estate is disbursed rather than just listing their wishes. In addition, trusts do not need to go through the long and complicated process of probate that wills do, and they cannot be challenged. Without a trust, it takes a lot longer to get closure and all the details can get messy in the process. If your spouse does have a trust, make sure it is up to date and they have worked with a professional to get all the legalities in place. 

Are All Important Documents Organized?

In the aftermath of your spouse’s passing, their will is not the only document you will need. Your marriage certificate, their birth certificate, and their Social Security card will be required to do things like request benefits or change the name on your car titles. Make sure you know where all of this paperwork is located, in addition to automobile titles and property deeds. 

What Benefits Are Available to You? 

When your spouse dies, you will be entitled to Social Security benefits and possibly other assets like pension benefits, life insurance, and annuities. If they are still working, there’s a good chance you will be eligible for benefits through their employer which you are unaware of. Have your loved one make a list of all the benefits you will receive at their death, and ensure you have the necessary information to claim them.

Do You Have Access to All Financial Account Information?

You probably have a checking account, savings account, retirement, and other investment accounts. When your spouse dies, the management of them will fall to you. Therefore, you need a list of every account you have, whether joint or in only one of your names, the type of account, the institution that holds it, and the account number. 

In addition to your assets, you have liabilities, such as debts, insurance, and monthly utilities. Since you don’t want to default on your mortgage while you’re trying to cope with your loved one’s death, record the relevant information for these accounts as well, including how and when payments are made. 

Have You Created a Spending Plan?

An important part of developing a plan to move forward alone will involve knowing your current spending needs. If you don’t already have a written budget, begin tracking your expenses and create one. It will be an incredible aid when planning for the future.

Do You Have a Trusted Advisor?

Having a strong support system will carry you through the death of your spouse and give you the strength to move forward. Part of that system should be a trusted financial professional. In many marriages, the husband handles the finances and it is he who has a relationship with the family’s financial advisor. If it is he who passes first, his wife inherits an advisor she neither knows nor trusts. 

It is vital you have someone you trust that you can turn to for help in financial matters. Widowhood is an extremely vulnerable time, and many unscrupulous people prey on widows. Take some time now to get to know your financial advisor and make sure you like working with them. Your peace of mind is of the utmost importance so, if necessary, find another advisor.

You’re Not Alone

One thing you will not regret is preparing for possible widowhood before it happens. At Farrall Wealth, we aim to arm you with a solid financial foundation and empower and educate you to make decisions that are right for your life. As you prepare for widowhood, we are here to answer any questions you may have. Call our office at 219-246-2516, email greg@farrallwealth.com, or schedule a complimentary consultation online. Be sure to visit our website to learn more and connect with us on LinkedIn, Facebook, Twitter, and YouTube.

About Greg

Greg Farrall is CEO and owner of Farrall Wealth, an independent, boutique wealth management firm that is dedicated to helping women and business owners create customized financial plans that allow them to grow, protect, preserve, and distribute their wealth. Greg is known for being a trustworthy problem-solver who walks his clients through whatever life throws at them. He prioritizes building long-term relationships and is passionate about going the extra mile for his clients so they can pursue their goals and live the lives they want. Greg has a bachelor’s degree in international business from the University of Wollongong in Australia and a bachelor’s degree in finance and marketing from Indiana University Bloomington. He is a Professional Plan Consultant (PPC®) and a Certified Wealth Strategist (CWS®) professional. And he recently received his Certified Plan Fiduciary Advisor (CPFA®) designation. You can listen to him on his financial literacy and business topic podcast, Money Matters with Greg, on iTunes, Google and Spotify. He’s also on YouTube, Twitter, and Facebook at @FarrallWealth.

Greg is a pillar of his community and served as the 2013-14 co-chair for the United Way campaign, through which he helped raise $1.8 million for 38 nonprofit organizations across Porter County, Indiana. He also served as president of the Valparaiso Rotary Club. Currently, he is on the advisory board for the Kelley School of Business and Dean of Students’ board at Indiana University. He also holds a position on the Culver Academies parents’ board. 

When he is not working, you can find Greg spending time with his family or investing in one of his many passions, which include cooking, Spartan races, fly fishing, and meditation. To learn more about Greg, connect with him on LinkedIn.

Securities and advisory services offered through LPL Financial, a registered investment advisor. Member FINRA/SIPC.

LPL Financial Representatives offer access to Trust Services through The Private Trust Company N.A., an affiliate of LPL Financial.