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After the Will is Read: What New Widows Need to Know

If you're a new widow, chances are your emotions are raw; the last thing you want to focus on is your finances. But for your own well being, it's important that you set aside time to deal with the details of providing for yourself financially. You didn't ask to be a widow, but now that you are, what must you do?

A newly widowed person has many decisions to make, none of which should be made hastily. This isn't the time to move, sell or buy a house or car, make investments with an inheritance or think about remarriage. Give your emotions time to heal, and seek reliable counselors. Above all, don't listen to those who insist that you must "act now, before the opportunity is lost."

Let's assume your spouse's will has been read, probated and the executor/executrix has performed all necessary requirements. If you've received any insurance, disability benefits or inherited funds, you should put the money in a safe place for at least one year — in government bonds, for example, or a savings account insured by the FDIC.

Wills, Inheritance and Death Taxes

• Your Will - Even if your will was appropriately drawn up before your spouse died, it's best to review and update it as soon as possible to be sure that it now prescribes the distribution of your current assets and names guardians for any minor children.
• Federal Estate Taxes - If your estate is sizeable, you should consult a competent estate-planning attorney. Be aware that surviving spouses can receive unlimited assets through inheritance without incurring any federal estate taxes.
• State Death Taxes - Not all states use the same code used by the federal government. If you have an attorney, ask about your state's code. If not, you may call your state tax commissioner's office for information.

Benefits

• Social Security - Apply for Social Security benefits as soon as possible after the death of your spouse.
• Dependent Benefits - Dependent survivors of Social Security participants are eligible to receive some financial benefits up to the age of 18 and perhaps longer if they are full-time students.
• Veterans - If your spouse was a veteran and had a service-related disability, you may qualify for benefits, even if the death was not service-related. Contact the Department of Veterans Affairs for details.
• Health Insurance - If your spouse had a group health insurance plan at work, be sure to inquire about steps to take if you want to keep the insurance. The so-called COBRA Act requires employers to offer surviving dependents an option to maintain the insurance for 18 months. This can be expensive, and arrangements still have to be made for any continuing health insurance coverage after the 18-month period ends.
• Life Insurance - The question of insurance of any kind is relatively simple. If your spouse left sufficient provision for you and your family, you may need no further insurance. However, if adequate provision wasn't made, perhaps you'll want to supplement your provision for minor children through additional insurance in the event of your untimely death.

Sometimes widows willingly turn over all decision making to someone else so they won't have to think about these issues; under the circumstances, this is certainly understandable. However, except in rare instances, no one can deal with most of these issues but you.

Once again, make no long-range financial decisions during the first year. And under no circumstances should you turn over finances to anyone to invest for you until you've recovered emotionally.

Whenever you feel down or overwhelmed by the decisions you have to make, remember, "A father of the fatherless, a defender of widows, is God in His holy dwelling" (Psalm 68:5, NIV). Pray for His guidance, and trust in His love for you during this difficult time of adjustment.

Related Reading:

- Larry Burkett is president of Crown Financial Ministries and a frequent guest on the Focus on the Family radio program.

©Used with permission from “Focus Over Fifty,” a Ministry of “Focus on the Family.”