The last thing you want to do after losing your partner is sit down to decide how life will go on without him/her. Yet, the world doesn’t stop—even when it feels like it has. While it’d be wonderful to stick your head in the sand until grief runs its course, you’ll likely need to make several important decisions in the aftermath of your spouse’s passing. Employing a checklist can help you navigate financial tasks while minimizing ill-advised, emotionally driven choices during this trying time.

Don’t rush into making big decisions

First and foremost, defer major financial decisions until you’re emotionally ready to address these: especially if nothing is pressing. While you may be tempted to rush into a hasty purchase or major upheaval, it's important to recognize that the devastating event that just occurred could inadvertently sway your decision. Whenever possible, recruit a professional or trusted family member to help manage the transition as a reality check of sorts.

Collect necessary documents

In the meantime, you’ll need to request multiple certified copies of your spouse’s death certificate (we recommend a minimum of ten, but the complexity of the estate may require more). You can request these from the funeral home or mortuary when the death occurs (the easiest way) or a few months later through the county or state vital records office. You’ll need multiple death certificate copies to close accounts, file for benefits, and/or transfer ownership of the estate.

You’ll also need to get organized as you gather some important documents including your spouse’s will and other estate planning forms, birth and marriage certificates, Social Security card, insurance policies, old tax returns, motor vehicle titles, safe deposit box paperwork, bank and retirement account statements, and anything else that might require updating. Beyond just paperwork, you may also need to check his/her email and other online accounts to ensure you aren’t missing anything.

Prioritize what needs to get done

After collecting the afore-mentioned documents, prioritize next steps. While everyone’s situation is of course a bit different, items impacting your income are often the top priority (e.g., acting as a beneficiary of your spouse’s life insurance policy or receiving Social Security benefits). Here are some helpful details in relation to the same:

Life insurance claims and payouts

If you’re the beneficiary listed on a life insurance policy, contact the insurer before doing anything else—knowing you’ll need to file a claim and submit a certified copy of the death certificate, at a minimum. Once submitted, many states give insurers 30 days to review the claim; despite the absence of a set timeframe, most will pay approved death benefits within 30 to 60 days of the claim date.

Your policy may give you the flexibility to choose how to receive the payout. You could opt for a lump-sum payment for the total amount or select an annuity option wherein you receive payments over time while your balance earns interest. Another option is a retained asset account with your insurer acting like a bank, holding an interest-bearing account you can withdraw funds from as needed. Life insurance proceeds are typically not taxable, but any interest you may earn is.

Multiple beneficiaries on the account, if applicable, each need to file a claim and choose a payout option to receive their portion of the death benefit.

Finally, if you opt for a lump sum payout for an amount more than $250,000, consider splitting the deposit between multiple accounts since the FDIC only insures deposits up to this figure.

Credit bureau notification

When your spouse passes, his/her credit reports aren’t closed automatically: you must either notify one of the three credit bureaus (Equifax, Experian, or TransUnion) or wait for the Social Security Administration to do so.

If you opt for the former (the quickest approach), you’ll need to place a credit freeze on your spouse’s account and then follow up by mail to request the account be flagged as “Deceased. Do Not Issue Credit.” This process, which you can initiate, gives you control over your spouse's credit report. When one bureau adds a deceased notice to the credit report, doing so notifies the other two bureaus as well.

Going through this process will minimize the risk of identity theft and help you obtain a copy of your spouse’s report—which will disclose any debt left behind—and you can search online for sample notification letters using terms such as “sample death notification letters for credit bureaus.”

Social Security benefits

If your spouse was collecting Social Security at the time of his/her death, contact the Social Security Administration (SSA) as soon as you can (knowing that if you provide the funeral director with your spouse’s Social Security number, he/she will notify the SSA on your behalf).

There are several reasons why it’s important to do so…

First, when one spouse dies before the other, the surviving spouse can take a survivor benefit: allowing him/her to collect a check or the check of the deceased—whichever is higher. While the monthly benefit is reduced if taken at an early age, widows can begin taking benefits at age 60 (or 50, for anyone with a disability) rather than wait until age 62.

Notifying Social Security will also trigger a one-time lump-sum death benefit of $255 to the surviving spouse and terminate the deceased’s monthly benefits, beginning with the month of death. Finally, you may also qualify for additional benefits if you have minor children.

Inherited IRAs

If you’re inheriting an IRA, this can provide a significant boost to your finances. Laws surrounding the same, however, are sometimes very complicated: making mistakes involving these types of investments often very costly.

The sole beneficiary of an inherited IRA does have a few options in this respect, including withdrawing assets as a lump sum, transferring inherited assets into his/her own IRA (new or existing), transferring the funds into an inherited IRA held under his/her name, or converting inherited assets into a Roth IRA. Options are more limited for multiple beneficiaries, however.

Regardless of which group you fall into, check out our article on inherited IRAs to learn additional details surrounding these options.

Joint accounts

As emotionally taxing as it is, you’ll also need to eventually extricate your spouse from joint accounts. For example, jointly owned assets such as cars or houses must be retitled, and bank accounts and any shared insurance policies must be placed in your name or closed. You can, however, consider leaving shared checking accounts open for a while (if possible) to receive any direct deposits your spouse had set up.

Your spouse’s employer and other accounts

Your spouse’s employer will need to know where to send any monies due, and you can inquire about any benefits (e.g., pensions) or life insurance policies you may be entitled to.

While it may seem trivial, also be sure to cancel any gym, club, magazine, or other memberships/subscriptions your spouse had to prevent future charges.

In sum: financial checklist following the death of a spouse

Trying to disentangle your spouse’s finances after he or she passes is a difficult process. Yet, any financial missteps can make life as a new widow(er) even more brutal to bear—which is precisely why it’s so important to have a game plan for processing your spouse’s estate, saving you extra grief in the long run.

What to Do If You Survive Your Spouse: A Financial Checklist