When Life Sends You Lemons: Financial Planning for the Widowed Woman

07 Jul When Life Sends You Lemons: Financial Planning for the Widowed Woman

Losing a spouse can be one of the most traumatic events in a woman’s life. But with women living longer, on average, than men, it’s likely to happen. In fact, many widows have many happy, healthy years without their partner.

Circumstances do vary, but there are a number of ways women can take steps to protect themselves and their financial situation immediately after the death of a spouse and in the years following.

Immediate Needs

Through the haze of grief, there will always be bills to pay and details to iron out. If you have minor children to worry about, it can be even more complicated. If you have recently been widowed, there are some issues you should try to address earlier than others.

• Know your rights. Even if you weren’t named outright on any assets, you may still have rights. For example, you may be able to remain in the family home even if you aren’t on title and you aren’t the direct beneficiary of the home. You may also be entitled to survivor benefits from CPP – and your children may be eligible for orphan benefits – but you must apply as soon as possible.
• Prepare for taxes. Death often triggers the taxman. But if your spouse left everything to you, there may be ways to minimize the bill by transferring it until after your death.
• Invest the money. If you haven’t been in charge of the money, it may be overwhelming. It’s important that you consider the right way to invest any money you inherit from your spouse, in order to make sure that it will provide the things you need.

Future Planning

The main issue is to review any planning you have already done and update it to reflect your new situation. It’s likely that your estate was structured to leave everything to your spouse. Now you’ll need to designate someone else to inherit from you. Don’t forget:

• Disability: Now that you’re alone, you’ll need to consider how to manage if you become unable to make your own decisions. Designate new powers of attorney for finances and care, and make sure you have adequate disability coverage.
• Estate: Update your will. If you have minor children or even children who are young adults, it may be a good idea to set up a trust to manage the money if you die before they are ready to manage the money on their own.
• Insurance: Update beneficiary designations. Keep in mind that it may be a better idea to designate your estate or your trust as a beneficiary, depending on who will inherit your estate. Also, be sure you have appropriate insurance – from disability to critical illness, from long-term care insurance to life insurance – to take care of you if and when you need it.

It can be a challenge to make financial decisions when you are grieving. If you are uncertain about what your circumstances demand, it is a good idea to speak with an advisor.

To learn more about preparing your estate, contact us.

Joel Rose

With over 35 years of experience, Joel Rose helps families – and their businesses – to prepare for the future. He offers guidance and support to help his clients create estate plans and succession plans that meet the needs of the whole family. Through his extensive professional and personal experience, Joel is known for his compassion and his ability to find a creative solution to meet each family’s needs.