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What should I do if I recently lost my spouse?
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It's difficult enough to deal with the death of a spouse. To be forced to deal with complicated financial issues at the same time seems like an overwhelming task.
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Yet there are important financial questions that must be addressed after the loss of a spouse. You may want to bring in a financial advisor who can provide an objective and experienced perspective.
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First, don't rush into anything. You'll have a lot of decisions to make--some big, some small--and there's no harm in putting off those that can wait. Prioritize those decisions that require immediate attention. It will help to compile a comprehensive list of all accounts, insurance plans, and relevant documents. And watch out for hucksters of all sorts who may try to take advantage of your misfortune.
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Initially, make sure that you have adequate resources for your immediate needs: not only your everyday expenses, but also funeral costs (which average around $5,000), legal bills, and the like. If your spouse was earning a salary, you'll be out that income, so it's important to watch expenses and have an ample reserve fund on hand.
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Next, you'll want to make sure that you and your family are protected in other areas. If health insurance was carried through the spouse, will it continue or will you need to find a new plan? Is your life insurance still adequate (particularly a concern if you have younger children)? Review any existing wills or estate plans to make sure they adequately reflect your new situation.
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As a final stage, you'll need to consider investing options. There's a good chance you'll be receiving a large lump-sum payment--through a distribution from your spouse's retirement account, a life-insurance payment, or a pension--which may involve complicated tax and investment-planning considerations. How you invest the money will depend in part on your age, number of dependents, and overall financial picture. Here again, a financial professional can guide you through the thickets, though you should take the opportunity to make yourself an informed and involved participant.
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