Losing a spouse can be overwhelming. It can be filled with grief, confusion and uncertainty.

It’s also a time where you could make mistakes that could have long lasting ramifications. Especially if you weren’t the one that handled the finances or you didn’t have much of a hand in the financial planning.

Below, we have identified some of the biggest mistakes that widows and widowers make when it comes to a spouse passing.

NOT KNOWING ABOUT THE FAMILY FINANCES – Often in any relationship, there’s one spouse who tends to manage the finances for the household and another who doesn’t. All too often, the spouse who’s not involved in the finances knows very little about household assets, income, and liabilities. Both spouses need to have an understanding of their personal finances to avoid this mistake if one spouse passes away.
BEING UNAWARE OF INCOME SOURCES – When a widow or widower has not been involved or infrequently involved in the household finances he or she may not be aware of all of the income sources they’re entitled to and may overlook sources of income. Both spouses should be aware of all entities that each one has and beneficiaries should always be current.
MISSING OUT ON SOCIAL SECURITY BENEFITS – A surviving spouse, even if they are not old enough to collect Social Security benefits yet, should check in with the Social Security administration as soon as they can after the death of their partner. Benefits become available at age 60 for the surviving spouse and there are options that he or she need to look at so that the best-informed decision can be made.
LEAVING OUTDATED FINANCIAL PLANS INTACT – The loss of a spouse may inspire lifestyle changes for the surviving partner including pursuing new interests or hobbies. These types of changes may require adapting or altering whatever financial plans were put into place as a couple. If your finances were set up in a certain way but your goals and desires have changed, it may be time to take a look at your plan and see if you’re still on track.
TRANSFERRING IRA ASSETS – When a spouse passes away, it may seem easier to streamline your financial affairs, putting everything in the name of the surviving partner. But you’ll want to be careful how you do this. A wiser course of action is to establish an IRA-Beneficiary Designated Account for the money, through which you avoid the 10% penalty on early withdrawals.
MAKING EMOTIONAL DECISIONS TOO SOON – Losing a spouse is never easy, and acting on emotion instead of thinking it through can get you in trouble. Take your time and save the big decisions for a later time.
CLOSING JOINT ACCOUNTS – While this might seem like a no-brainer, this could back-fire on you. It could harm your credit score and reduce credit lines available to you. Instead ask the lender about removing your spouse instead of closing the account altogether.
FAILING TO NOTIFY CREDIT BUREAUS – The surviving spouse may not know of all the debt the spouse may have had, which can lead to late payments and defaults, which again can harm your credit score. Contact the credit bureaus and let them know of your partners passing. Send a letter with a copy of the death certificate to each.
NEGLECTING TO REVIEW BENEFITS – If your spouse was employed, it’s important to reach out to their workplace to discuss benefits and outstanding payments you may be owed. If the employer provided life, health, or accident insurance, you may be entitled to receive payments under these policies. If your spouse belonged to a union or professional organization, ask about death benefits for members. If the death was work-related, you may be entitled to worker’s compensation benefits.
SCAMS – While it is heartless, people will always try to take advantage of someone else’s loss. Do not fall victim to it. Before sending your money to someone you do not know, be sure to have someone else look over anything you deem sketchy or that doesn’t seem on the up and up to you. Or have a Financial Advisor on hand to help you with all your financial needs in your time of need.

These are just some of the things you need to be on the lookout for when your partner/spouse passes away. During this trying time, you need someone that will always be there for you. Coach Peter D’Arruda and his team of financial advisors here at Capital Financial, Inc, can help make this difficult experience a little easier. Contact them today for a consultation, and let someone else worry about your financial situation, while you take care of yourself.