Font size: +

Take it Slow: Financial Help for Widows

No one is ever ready for the loss of a spouse, and when it happens, the hard reality of dealing with money comes along with the intense grief. Financial help for widows should come only from trusted sources, so remember, go slow and be cautious.

Six Important Pieces of Advice

  1. Get organized – If you were already handling bills and other financial matters, you’re fortunate. You’re already up to speed on what’s going on. If not, the first thing you should do is tackle all the files and paperwork. Use an accordion file, three-ring binders, or whatever filing system works for you to set up a system for managing information.

  2. Pay the bills – It’s easy to feel overwhelmed as you try to locate account passwords and understand your household bills, so enlist the help of your children or close friends. Focus on setting up a system for paying your bills automatically and on time. Make sure you have funds to cover your immediate needs. If you’re in an urgent cash crunch, a resource like CashMax can help you with short-term loans and other services.

  3. Procrastinate – Widows, especially those with large inheritances, are often targeted during these times. Avoid sales people, investment advisors, and even relatives who want a loan. This is not a good time to make large financial decisions or take on unfamiliar risks. Wait at least a year or two – simply tell people you’re not ready to get involved – and use an objective, fee-based financial planner who is not commission-based.

  4. Wait some more – Your name is already on whatever joint accounts you had, so you have full access to them. You don’t need everything in your name immediately. Avoid accessing any 401(k) accounts if you can, because some penalties may apply. At some point, you will need to retitle your home, car, and investment accounts, but there’s no rush. It’s okay to wait a few years.

  5. Set new financial goals – Later in the grieving process, you’ll feel ready to set new financial and life goals. Where you want to live and how you want to spend your time may be very different from the plan you had with your spouse. Again, work with an objective, third-party advisor to discuss your options.

  6. Evaluate your Social Security Benefits – You have access to both your own retirement benefit, plus your survivors benefit. Wait until age 60, if possible, to collect the survivors benefit to claim the maximum. And, if you can postpone collecting your own retirement benefit, it will continue to grow at eight percent per year until you’re 70. Consult your third-party advisor to understand your options and your situation. If you’re a young widow caring for children, you may need to collect your benefits immediately.

Paying Back Student Loans While Living the Life Yo...
What to Do After a Car Accident