Managing Your Finances When There is Death within the Family

When someone passes away, this is a very painful process. This is going to be harder when this person is your spouse. Usually when this happens, a huge chunk of the financial scenario changes. This can be a stressful time for a widow or a widower. Young spouses, especially with children will feel that the sudden abrupt loss of income is very difficult. Others may have that delusive sense of assurance when they receive big amounts of money from insurance companies. They have the tendency to overspend. Statistics even show that twenty five percent of widows use up their spouse's death benefits in just 2 months.


Earlier in the relationship, couples should have an understanding or arrangement regarding all their assets as well as their liabilities. Knowing this will prevent any future problems. For those who are unaware, having high credit card debt may result to confusion and regret.


It is recommended that you see a financial consultant or an attorney. Let them know your situation and let them see any documents that may help like insurance policies, bank statements and wills. They are willing to help you plus make your life well-situated. After a spouse's death you may get phone calls from people who are claiming that they know your husband or had an account with them. Ask for proof like financial statements and the like. Never give out any sensitive information.


After meeting a financial consultant or an attorney, you would know where you are in terms of your finances. This will prepare you for your future and you can immediately take the first steps in setting up your finances. Keep in mind not to make any big and irrevocable decisions instantly like putting your house up for sale. With the help of these professionals they may likely advise you to use your money in a retirement fund or insurance. Also, your spouse's death benefits will be given to you either in lump-sum or periodic payments. They can help you in getting your Social Security claims as well as benefits. Always make sure that everything is clear to you before deciding on anything.