On behalf of Law Offices of Frye, Fortich & Garcia, P.L. | December 17, 2024 | Estate Planning
Losing a spouse is an emotional and overwhelming experience. Beyond the grief, it significantly impacts your estate plan, creating a necessity to review and adjust your financial and legal arrangements. Here’s a look into a few things you should consider:
Immediate Actions
Locate any important papers belonging to the decedent, including any deeds, life insurance policies, documentation regarding retirement plans, etc. Continue gathering the decedent’s papers. Some documentation may arrive weeks or months later by mail, so it is important to stay attentive to this matter.
It is essential that you inform financial institutions, insurance companies, Social Security Administration, and the IRS about your spouse’s passing.
If your loved one was a veteran, you may be able to get assistance with the funeral, burial plot or other benefits, and you should contact the Veterans
Administration. You will need a copy of your loved ones’ discharge papers. If they were working, contact their employer for information on pension plans, credit unions, and union death benefits.
Reviewing the Will and Trusts
Take steps to revisit your will and any joint trusts. If your spouse was the primary beneficiary, you will need to update these documents to reflect a new beneficiary. This is an essential part of ensuring your wishes are met and assets distributed as per your updated intentions.s.
Retirement Accounts and Life Insurance Policies
Beneficiary designations on retirement accounts (like IRAs and 401(k)s) and life insurance policies are independent of your will or trust. It is essential to contact these institutions, update the beneficiaries, and review your options regarding any inherited retirement accounts.
Tax Considerations
Filing an estate tax return may be required to take advantage of the deceased spouse’s estate tax exemption. Consult with a tax professional to understand potential benefits and obligations. Married couples often have tax strategies that need reassessment upon the death of a spouse.
Property Ownership and Titles
If you owned property jointly with your spouse, the title might automatically transfer to you, depending on state law. Still, you should confirm how assets are titled and consult with a probate and estate planning professional to determine if you need to update deeds and titles to avoid future legal complexities.
Powers of Attorney and Health Directives
You may have named your spouse as your agent under a power of attorney or healthcare proxy. Revising these documents to appoint someone else whom you trust is crucial to ensure that your medical and financial decisions will be made by someone you choose and avoid the need for a guardianship in cases where documents are not updated and no successor is named.
Updating Your Own Will
Finally, ensure to update your testamentary documents to reflect your current wishes, considering the changes in your estate and the new dynamics of your living situation.
Consulting Professionals
During this time, consulting with an estate planning attorney and a financial advisor can provide not only emotional relief but also ensure your updated estate plan complies with legal and financial regulations.
