Life Planning For The Unthinkable
Continued...
6. After you have documented all of your assets and liabilities, it is time to review the financial impact of losing a spouse. When you estimate current expenses versus lump-sum payouts and potentially reduced financial resources, there are a number of criteria to keep in mind:
-A surviving spouse should expect living expenses to be approximately 70% - 80% of what they were previously.
-In determining pension payouts, the surviving spouse’s benefits may be reduced by as much as 50% and Social Security benefits may be reduced by one-third or more.
7. Utilize professional advisers, coordinating the services of your attorney, CPA and financial adviser to create a strategy in the event of a loss.
Action Items
After the loss of a spouse, there are a number of actions to be taken. The following list was developed as a quick reference to help keep the surviving partner from feeling overwhelmed or forgetting the important notifications.
For a complimentary "Getting Started with the Basics" checklist contact Denise Wilcox at
702-939-4920 or visit her online at www.wilcoxadvisors.com.
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-A surviving spouse should expect living expenses to be approximately 70% - 80% of what they were previously.
-In determining pension payouts, the surviving spouse’s benefits may be reduced by as much as 50% and Social Security benefits may be reduced by one-third or more.
7. Utilize professional advisers, coordinating the services of your attorney, CPA and financial adviser to create a strategy in the event of a loss.
Action Items
After the loss of a spouse, there are a number of actions to be taken. The following list was developed as a quick reference to help keep the surviving partner from feeling overwhelmed or forgetting the important notifications.
- Retrieve your Life Plan and review the documents included.
- Many offices and agencies will require death certificates, so to speed processing, purchase 10 certified copies through the funeral director or county health department.
- File claims with life insurance companies as soon as possible.
- Change signature cards on joint bank and sign bank "powers of attorney" for individual accounts.
- Open a separate checking account to manage the deceased’s assets and expenses.
- Call the Social Security Administration at 1-800-722-1213 to verify and claim benefits.
- Notify unions or professional organizations of claim for death benefits.
- Contact the company human resources department for applicable workers’ compensation and life, health, or accident insurance benefits. Confirm payment of remaining vacation or sick leave.
- Notify department of Veterans Affairs for lump-sum burial claims, disability benefits, or other allowances.
- Cancel credit cards held in your spouse’s name only.
- Transfer joint credit cards to your name.
- Change the title on vehicle(s) through the State Department of Motor Vehicles.
- Check your spouse’s will before changing the title on bank or brokerage accounts.
- Arrangements may have been made for the assets to flow into a trust.
- Contact your financial consultant to change the title on jointly owned investments. Also, review with your attorney and accountant what taxes you may expect to incur.
- Change beneficiaries on your will and insurance policies as appropriate.
For a complimentary "Getting Started with the Basics" checklist contact Denise Wilcox at
702-939-4920 or visit her online at www.wilcoxadvisors.com.
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