This archive report was first published on 18 July 2019.
Money Mistakes to Avoid When a Spouse Dies ¶
July 18, 2019
When a spouse passes away, it's natural to feel overwhelmed and uncertain about the future. However, it's essential to take control of your finances to avoid making costly mistakes.
One of the most significant challenges widows face is making major money decisions. In the midst of grief, it's easy to act emotionally and make impulsive decisions that can have long-term consequences. For instance, you might want to immediately pay off a mortgage, sell an important asset, or quit your job. However, experts recommend waiting at least a year before making significant financial decisions.
Another common mistake is being too trusting. Con artists often target widows, taking advantage of their vulnerability. Be cautious of 'sales people' or 'financial advisors' who offer seemingly great deals or try to befriend you. It's also essential to update your will, trusts, and beneficiaries to ensure your family's financial security.
Additionally, many widows neglect to collect money owed to them, including death benefits, life insurance claims, and unpaid salaries. Check your spouse's financial records and contact their employer, business partners, and pension carriers to discuss any pending financial matters.
Finally, it's crucial to update your legal documents, including your will, trusts, and beneficiaries. This will help ensure that your family's financial future is secure, even if you were to pass away.
By being aware of these common financial pitfalls, you can take control of your finances and ensure a secure future for yourself and your family.
