Back in April there was an article in the Globe and Mail that peaked my interest. As Mortgage Brokers, we see the mortgage and life insurance process begin, but we rarely see the other side of it – when a loved one actually passes away. While I say, and continue to say to all my clients, no plan is not a good plan, most people can’t fathom a reality where such insurances will actually pay out.
The Globe and Mail article, titled the same as this blog, talks about what happens after a spouse passes, particularly when they pass suddenly. The spouse left behind simply wants to grieve but there are decisions to be made and actions that need to be taken.
It can be overwhelming at any point, but following the death of a spouse has to be the worst time to try and comprehend next steps. While ideally you want to have some grip on the process prior to the spouse’s passing, you are not always afforded this luxury.
While many will say “don’t make any major financial decisions for a year”, that isn’t always the reality of the situation. If the surviving spouse cannot realistically afford to keep the house that they have been living in, waiting one year could spell financial ruin.
The close friend of a woman who was going through exactly this saw that there was little or no resources to help widows and widowers in these situations. It just so happens that this friend was also a financial planner so saw a need and developed Widowed.ca, a resource for new Canadian widows and widowers.
She also co-authored a book entitled “Managing Alone”. The book uses real life stories and real life solutions, based on the authors’ extensive experience as financial advisors, offers insight, counsel, direction, encouragement and most important, specific information to guide recent widows and widowers through the financial transition to the next stage of their lives.
The first thing any financial planner is going to do in this situation is ask questions so it’s a good idea to have all of your financial information stored in an agreed upon location, including usernames and passwords. Keep the information up-to-date including the common knowledge about where it’s stored, how to access the information and are there any updates.
While it is not a conversation that most people want to have with their spouse, it is one that can’t be ignored.
Also, not all financial planners are created equal in this situation. Make sure you find someone who is asking a lot of questions. Even if you don’t know the answers, they are trying to understand you current financial situation, needs and financial goals. This will make all the difference.
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