Your Spouse Has Passed – Now What?
Your spouse has passed – what do you need to do?
Many times, there may be very little for you, as the surviving spouse, to do after the funeral. However, everyone is different and what your relative or neighbor may have experienced is not what is true for your situation.
The list below is but only a few thoughts for you to consider, but remember it is not exclusive and should not be relied upon for being legal advice – only for you to consider. The best advice is to contact your attorney for definitive actions to be taken.
- If you and your spouse owned assets jointly, most likely they were owned as tenants by the entireties – upon the death of one, the surviving spouse owns the entire asset. What action might be necessary to remove the deceased spouse’s name from the asset?
- However, there are other forms of ownership – tenants in common – in which each spouse owned one-half of the asset and upon a spouse’s death, their one-half interest is considered a probate asset and does not necessarily pass to the surviving spouse.
- If the deceased spouse owned assets jointly with someone other than the surviving spouse, be aware that the asset most likely passes by operation of law to the surviving owner. Determination must be made to determine ownership.
- What assets were owned by your spouse either individually, jointly or with a beneficiary designation? Some or all of the assets could be subject to estate tax – inheritance or estate tax.
- Does the deceased spouse’s Will need to be probated? The best answer comes only after speaking with an attorney.
- Social Security was most likely notified by the funeral director of the death but the surviving spouse needs to follow up with the SSA for determination of future benefits.
- Was the deceased spouse receiving benefits from a retirement-type plan or a former employer?
- Do you need to address medical insurance coverage?
- Is it necessary to prepare and file a state inheritance tax return?
- Is it advisable or necessary to prepare and file a federal estate tax return – especially to preserve the unused spousal federal estate tax exemption?
- What is the impact on your individual income tax returns?
- Does the surviving spouse need to update their estate planning documents?
Frequently upon the death of a spouse, the surviving spouse will visit a financial institution to notify them of the death. As the surviving spouse, you want to make certain that someone can help you in the event of your inability to handle your own affairs. When visiting the financial institution, it may be recommended that you add your child on the account. BEWARE: If you add your child as a joint owner, your assets could become subject to your child’s creditors. Is this your intention? OR, is it your intention to only grant permission for your child to have signatory permission on the account – but not be an owner? Has the financial institution recommended that you put a beneficiary designation on the asset(s)?
There is no one answer that fits all circumstances. Before you do anything with the financial institution, make certain that your wishes are being carried out. Often times financial institutions advise surviving spouses to put a child’s name on their account. And, what happens is that the child is made a joint owner and only discovered after the fact. And, sometimes when it is too late to protect the asset.
Your best bet is to contact an attorney for consulting on what the best direction is for your situation.
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