In 2011, we brought on a client on the verge of retirement. Six months into retirement, her husband died of brain cancer.
While the wife had what most people would consider to be an estate plan in place, the financial nightmare that followed the human tragedy totally changed how I prioritize these conversations.
If your spouse is sick, these things may understandably be the furthest from your mind, but I view them as non-negotiables.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Kiplinger's Adviser Intel, formerly known as Building Wealth, is a curated network of trusted financial professionals who share expert insights on wealth building and preservation. Contributors, including fiduciary financial planners, wealth managers, CEOs and attorneys, provide actionable advice about retirement planning, estate planning, tax strategies and more. Experts are invited to contribute and do not pay to be included, so you can trust their advice is honest and valuable.
1. Review or create your estate plan
Most people think of the will as a tool to transfer assets. And it can be. However, in this context, the most important parts of your legal documents don't have to do with asset transfer.
- Financial powers of attorney (POAs) make sure you can pay the bills for the things that aren't titled in your name.
- A medical POA allows you to make health care decisions on behalf of your spouse.
- In the worst-case scenario, a will names a guardian for minor children.
2. Update titling and beneficiary designations
Most of our clients' assets transfer via trust or beneficiary designations, not their will. This is why it is so important to make sure these are set up according to your wishes.
Things like retirement accounts, life insurance policies and annuity contracts will default to your beneficiaries. Your home, your bank accounts and your taxable investment accounts will not.
Lastly, as you're going through the process of updating these things, it makes sense to simplify where possible. You may have five different 401(k)s that tell your career story. Modern brokerages have made it possible and easy to consolidate.
3. Review insurance policies
I bought term life insurance in 2014 and again in 2021. Outside of the death benefit and the terms, I can tell you very little about my policies. Even for those in the weeds, like me, once this box is checked, it is as easy to forget as your middle kid's birthday.
You'll want to review any long-term care, disability and life insurance policies to ensure you have adequate coverage but also to make sure that the address, billing information and beneficiaries are up to date.
4. Take inventory of assets and password access
When you visit an estate attorney, they will ask for an inventory of your assets and liabilities. There are plenty of software solutions out there that can help you track this and will help you make sure everything is accounted for if your spouse passes.
I rely on the financial planning software we use with our clients as it allows me to link my accounts from various institutions and updates them every day. You can access a free version of what we use online.
Beyond financial assets, you'll want to inventory your personal property. Things like jewelry can pass via a will or trust but often can be left via a side letter of instruction.
Looking for expert tips to grow and preserve your wealth? Sign up for Building Wealth (soon to be called Adviser Intel), our free, twice-weekly newsletter.
Finally, you want to make sure you have online access if your spouse passes. Password apps, such as 1Password, are more popular than they were a few years ago and greatly simplify this, but do you know how to access your spouse's password app?
A spreadsheet or handwritten list also works, but similarly, you need to make sure you know how to access that list.
5. Plan for future cash flow
The death of a spouse, not surprisingly, can be extremely disruptive to your monthly cash flow. You'll drop to one Social Security benefit and may lose a pension, but you don't get an equal reduction in your expenses.
It's better if this is not a surprise after the fact. You'll want to make sure that you can maintain your current lifestyle or at least know what you would have to do to live a life you're comfortable with. The same software linked above can run these numbers.
This was a depressing but necessary column to write. If you've read this far, you may be in a tough spot. If there is anything I can do to help, my door is open.
Related Content
- 13 Financial Moves to Make After Losing a Spouse
- Which Type of Power of Attorney Is Right for You?
- Digital Estate Planning Guide: Get Your Digital Assets in Order
- Widow's Penalty: Three Ways to Protect Your Finances
- The Financial Effects of Losing a Spouse
-
Seven Things You Should Do Before 2026 Because of One Big Beautiful Bill ChangesThe new law ushers in significant changes for most taxpayers. Make these moves now to take advantage of them.
-
Where the Ultra-Rich Are Buying Real Estate NowWhy the ultra-rich are flocking to new corners of the world — and what their moves reveal about real estate hotspots.
-
Seven Things You Should Do Before 2026 Because of One Big Beautiful Bill Changes
The new law ushers in significant changes for most taxpayers. Make these moves now to take advantage of them.
-
I'm a Financial Adviser: The OBBB Is a Reminder for Older People to Have a Long-Term PlanThe new tax bill presents a good opportunity for retirees to revisit tax plans, look into doing some Roth conversions and consider plans for long-term care.
-
I'm an Insurance Expert: This Is Exactly Why Your Insurance Rates Are Soaring (and What You Can Do)A dramatic rise in the frequency and cost of severe weather and wildfires means you need to prepare, prepare, prepare — no matter where you live — for higher premiums.
-
Stocks at New Highs as Shutdown Drags On: Stock Market TodayThe Nasdaq Composite, S&P 500 and Dow Jones Industrial Average all notched new record closes Thursday as tech stocks gained.
-
Government Shutdown Puts IPO Resurgence at RiskThe IPO market has been sizzling in recent months, but the government shutdown threatens to put a short-term halt to public offerings. Here's why.
-
Amazon AI on Prime Day: Deal Helper or Upsell Machine?Amazon’s Rufus chatbot, Alexa voice deals, and Amazon Lens can change how you shop on Prime Day. Here’s how to use them wisely — and avoid being upsold.
-
Q3 2025 Post-Mortem From an Investment Adviser: Markets Continue to Climb, Gold ShinesThe third quarter saw market gains driven by Fed rate cuts and strong earnings, despite high valuations and concerns about speculative trading and job growth. Gold and international stocks could be potential hedges.
-
Moving Abroad? You Might Need a Cross-Border Financial AdviserIf you want to live in another country long term, you could benefit from an expert's guidance. Here's how to find a good qualified adviser to help with residency requirements, documentation, financial laws and tax impacts.
