By Daniel Korleski, MBA
Imagining your life without your spouse is probably one of the hardest, most devastating things to think about. The last thing you would ever want in times of grief is to worry about all the legal and financial implications of the loss of your spouse. Considering the difference in life expectancies for men and women, widowhood is a possibility that should be taken seriously.
It’s impossible to emotionally prepare for the loss of a life partner, but taking some time to prepare by answering the following questions will ease the burden if you ever find yourself in the difficult time of widowhood.
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 protected 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.
Have You Organized Your Documents?
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 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.
What Does Your Spending Plan Look Like?
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 support 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 well-being 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 Cobalt Private 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 your questions. Contact our office by calling 719-332-3863 or emailing danielkorleski@cobaltprivatewealth.com to schedule a meeting.
About Dan
Daniel Korleski is the President & CEO for Cobalt Private Wealth, where he helps his clients grow, manage, and protect their wealth so they can work toward a stronger financial future. With over 30 years of experience in the financial services industry, Dan has served as the managing director for Investment Trust Company, chief investment officer for the Wealth Management Group at American National Bank in Denver, and regional investment manager for the Greater Colorado Region of the Private Bank at Wells Fargo, where he oversaw the management of over $2 billion. In 2008, he was appointed by the mayor of Colorado Springs to the City’s Investment Advisory Committee. Dan holds an MBA in investment management from Midwestern State University in Wichita Falls, Texas, a Bachelor of Science in Finance from Florida State University, and is a member of both the CFA Society Colorado and The Financial Planning Association.
Dan loves to give of his time to his community and has served as Chair of the Board of Trustees of Pikes Peak Hospice Foundation, the Board of Directors of Catholic Charities of Central Colorado, President of the Broadmoor Rotary Club and Vice President of the Board for the Pikes Peak Chapter of Trout Unlimited. Dan was born and raised in Spain and is fluent in Spanish. When he’s not working, you can find him traveling around the world with his wife of 23 years, Montse, fly fishing, golfing, and hiking with his golden retriever, Curro. To learn more about Dan, connect with him on LinkedIn.
