If you or someone you know has ever lost a spouse, it is absolutely devastating in every aspect of life. When it comes to personal finances as a widow or widower, there is a seemingly endless “to do” list. Figuring out where to start can be truly daunting. To help get your affairs in order, here are a few tips to keep in mind:
Don’t Make Big Decisions Too Soon. The first few months after the loss of a spouse are beyond emotionally challenging. Now is not the time to make dramatic financial changes (downsizing your home, selling your cottage, quitting your job, etc…) as you may easily encounter regret or significant stress. There are NO financial emergencies and it is perfectly OK to wait six months-to-a-year before you act.
Look Through Bank Records for Who to Contact Next. Everyone has subscriptions or bills that get paid on a routine basis. Whether it be Netflix, a cell phone, life insurance or RRSPs, your spouse almost certainly had transactions where changes need to be made. You may need to swap some services to your name, cancel others, or reach out regarding insurance or investment claims. Bank records will provide numerous clues for active accounts and services to handle.
Apply For CPP Benefits. In Canada, CPP offers two benefits to qualifying surviving spouses: the CPP Survivor Pension and the CPP Death Benefit. Most funeral homes will provide copies of the applications to be submitted to Service Canada. You’ll likely need to provide a copy of your marriage certificate and a death certificate, plus your bank account information for direct deposit.
Keep Liquid Funds Available. When your spouse passes away, you’re going to face several expenses, expected or not. Whether it’s funeral & burial costs, legal fees, or just time off work, having access to cash will keep financial stress at bay. Talk with your Financial Planner to make certain you won’t run into any liquidity problems in the coming months.
Update Your Own Beneficiaries. If you have any personal investment accounts (TFSA, RRSP/RRIF, LIRA, etc…) or life insurance policies of your own, update your beneficiaries if you had previously named your spouse. You can always edit again later if you change your mind; but leaving assets without beneficiaries will introduce risk that your own affairs won’t be handled the way you intend.
This is by no means an exhaustive list but do not fret. Funeral Directors, your Accountant, your Lawyer, your bank and your Financial Planner will all assist in the process. The coming weeks and months will certainly be challenging, just know that you’re not alone and there are resources to help. Take care of matters at your own pace so your finances can take care of you.
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