The Financial Impact of Death

I received a call yesterday from a good client of mine who told me his wife passed away this past weekend. While death is difficult to comprehend in any situation, it is particularly so when it happens in a matter of a month. She went from being perfectly healthy to passing away with no explanation 29 days later.

Although the emotions of losing a spouse will continue to build for years to come, he is trying to deal with the financial impact as well which is the last thing any of us would like to think about at a time like this.

However, he has no choice because there was no discussion, preparation, or expectation of this event.

While I am neither a nihilist nor a pessimist, I am a realist. It is vital that we understand our mortality and plan accordingly. There are several steps that you can take to make a devastating event like this just a bit more bearable:

• Have a Will - Have something in writing to spell out where your assets will go upon your death.
• Know Your Accounts - Have a central and secure location where account numbers and passwords are available for all bank and retirement accounts but also for credit cards, mortgage accounts, and any other debts that need to continue to be paid in the face of this extraordinary event. A safety deposit box is a great location.
• Have Life Insurance - Even if the amount is small ($50,000 or so) it will be so helpful for your partner to have some sort of financial relief during this emotional time.

There are very few events as impactful as death but with some preparation the focus can be on emotions versus finances.

All the best,

Matt Hanson

Mortgage and Financial Planner

303.300.8601