You will have recently read of the tragic death of journalist and TV personality Michael Mosley. Mosley is survived by his wife of 37 years, Clare, and their four children.
In a statement, Clare said: “It’s devastating to have lost Michael, my wonderful, funny, kind and brilliant husband. We had an incredibly lucky life together. We loved each other very much and were so happy together.”
If you’ve recently lost your spouse, you will relate to Clare’s grief. The heartbreaking loss of your spouse can be a deep emotional shock and may leave you feeling uncertain about many aspects of your life – including your finances.
Fortunately, by taking certain steps, you could begin to regain a sense of control. So, read on to learn four important financial planning steps to take if you’ve recently lost your spouse.
1. Deal with the urgent matters first
In the first few days or weeks following your partner’s death, thinking about money may be the last thing you want to do.If you’re feeling overwhelmed, it’s important to know that there’s no expectation from banks, the government, or other institutions to deal with any financial issues immediately.
However, once you’re ready, you’re likely to need to deal with some of the more pressing financial matters.
Firstly, you should inform the relevant institutions of your partner’s death. You may need to notify:
- Banks
- Insurance providers
- Pension providers
- Credit card providers
- Any other financial institutions your partner may have dealt with.
Additionally, it’s important to inform certain government departments, such as HMRC. The government’s Tell Us Once service lets you notify most government departments in one go.
It could also be beneficial to make sure all your bills continue to be paid. Keeping on top of your outgoings could ensure you don’t face late payment fees, go into arrears, or lose insurance coverage.
Some direct debits or standing orders may have been paid from your partner’s bank account. When you inform their bank of their passing, the bank will freeze their account. So, you may need to set up new recurring payments.
2. Make any relevant insurance claims
If your spouse or partner had life insurance, you will need to approach the insurer after they pass away. To make a claim, you’ll need to send the insurer some documents including a copy of the death certificate.
Money from a life insurance policy could help you as you adjust to life without your partner. It could also help you cover costs like the funeral, meet your mortgage payments and general living expenses, or build your retirement fund.
There’s no time limit to claim on life insurance policies, so don’t feel pressured to tackle this task before you feel you’re ready.
3. Consider your housing situation
A home can hold a lot of memories and emotions and, after your spouse passes away, you may want to stay there while you consider your longer-term options.
However, you may instead feel that you want to move following your loss. This is a common choice to make. A study from the University of Copenhagen found that 30% of Danish widows moved home following the death of their partner.
Whatever you decide to do, it’s important to make sure your living situation is affordable and won’t disrupt your long-term financial plans.
4. When you’re ready, take stock of your financial situation and create a new plan
With short-term essentials like your bills taken care of, there’s no great rush for you to tackle any other financial matters, so take the time you need.
If your partner took the lead in managing your finances, their passing could leave you in unchartered waters. So, when you’re ready, it could be very helpful to build a picture of your new financial position.
Understanding your financial situation could put you in the best position to move forward. You may want to build a picture of your assets and debts, including:
- Savings
- Investments
- Pensions
- Property
- Mortgages
- Other debts.
It could also be useful to understand how your income has changed after your spouse passed away.
We can assist you with every step of this process and advise on how your assets can support your current lifestyle.
We can also help you determine what you want from life and put a financial plan in place to help you get there, giving you a greater sense of certainty about your future.
Get in touch
At Solus Financial Planning we specialise in providing independent advice to those who are recently bereaved. We can provide personalised planning that will bring stability at a time when things can feel uncertain.
To find out how we can help please email hello@solusfinancial.co.uk or call us on 01245 984546.
Please note
This article is for general information only and does not constitute advice. The information is aimed at retail clients only.
Note that life insurance plans typically have no cash in value at any time and cover will cease at the end of the term. If premiums stop, then cover will lapse.
Cover is subject to terms and conditions and may have exclusions. Definitions of illnesses vary from product provider and will be explained within the policy documentation.