More than 1.49 million women and almost 445,000 men become widowed in Canada every year.    Losing a spouse unleashes a deluge of financial tasks that can be daunting, even if the survivor was actively involved in the financial matters before becoming a widow.

Here are a few tips to help keep track after losing a spouse.

Plan for the day one of you will pass away.  Ideally you will want to review your estate plan long before anything happens.  This should include reviewing and updating beneficiary designations, life insurance policies, pension benefits, identifying potential tax liabilities, and any other survivor issues.

Avoid making any major decisions right away.  When you are mourning making big decisions about your life ahead can be exceedingly difficult, it is best to wait until your head is clear and you can properly way your options.  In the short term, keep some cash available for unexpected expenses and watch your cash flow.  Simply make sure your bills get paid and apply for any government or other benefits you are entitled to.

Take your time making moving decisions.  Although you may be tempted to avoid loneliness and move in with one of your adult children, remember your friends, social activities and medical providers are close by.  Leaving your community and moving away maybe lonelier than you realize.

Don’t become an ATM for others.  Shortly after the death of a loved one, we are all more emotionally vulnerable; be wary of friends, family or charities that approach you for money.  If you do want to gift some money to the kids; check with your financial advisor to ensure you can afford it.

Once the estate is settled, update your financial plan to reflect your new life situation.  Review your investment portfolio and income streams, make adjustments to reflect your comfort level and cash flow needs.  It is also time to update your beneficiary designations and draw up a new will including powers of attorney.  Remember to discuss you new plan with your family and executors, this will ultimately help ease the burden on those for whom you have chosen to carry out your final wishes.

Regardless of your age, estate planning is an essential element of life planning.  If you do not know where to begin, give me a call.

Have a great weekend,

Tracey

Source:  Original article posted on Advisor.ca 03-25-15 by staff, David Chalmers, Nicola Wealth Management, Statista.com, MT2017-04-05,2021-07-16

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