It should go without saying that for any relationship, there is always the fear of the unknown, especially in the event one person dies suddenly and leaves the other trying to navigate life, including finances, without the direction of their better half.
This is a sad but true reality for far too many people every year, and it has this Redditor thinking based on their post in r/personalfinance. As the individual responsible for household finances and income, this Redditor is worried about how to help his wife in the event of his untimely passing.
I Am Dead. What Does My Wife Do Next?
In this particular story, the Redditor is rightfully concerned about his situation, given that he handles the household finances, which includes being the sole provider, as well as being the one who handles all of the budgeting and investments, etc.
The last thing he wants is for his wife to struggle down the road. The good news is that he has a “hefty” life insurance policy that would help the wife stay out of the workplace, at least for “many, many years.”
All of this said, he does want to put together an “in case of my death, break open” kind of information packet to help guide her on what to do next. This would include, but is not limited to, instructions on filing the insurance claim, expectations for the claim amount, passwords for all accounts, and guidance on managing the family’s current investment portfolio.
The Redditor came to r/personalfinance hoping to find some information from other individuals on this subreddit as to how they have handled something similar. Do they have a template they used that could be shared, or any advice on how they have handled something that’s pretty tough to talk about with a spouse and or children?
The Best Steps to Take Right Now
Get Her Involved in Finances As Soon As Possible
The idea of getting the wife involved and aware of finances now could fit anywhere on this list, but it’s as essential as it gets. The Redditor doesn’t have to put her in charge of anything, but there is no reason she needs to remain uninformed about their current financial situation, the life insurance policy, etc. Also, give the lawyer a list of every important document she might need to help navigate everything, like birth certificates, etc.
It’s really hard to emphasize just how important this advice is right now, and it’s one of the things I would tell someone I care about to emphasize most. If there isn’t a joint account, set one up right now, today, as you never know what can happen.
Get Legal and Financial Advice
Given that we are talking about at least some level of money that would help the wife avoid working for a while, talking to an estate attorney is the first place to start. Ensuring that all aspects of a will and/or a living will are in order should be the first step. Best of all, the lawyer can advise or direct the wife to a financial manager who can help navigate the process of filing the life insurance policy and managing the breakdown of all current investments.
Setting up time with a financial planner will be critical in helping the wife navigate this sudden influx of financial responsibility. This individual can discuss with the wife how to manage her spending to maximize the longevity of the life insurance money and investment accounts. In fact, the couple should schedule a meeting with a financial manager together, ensuring they are both on the same page for the future and reducing potential stress.
Set Up a Password Manager
For the Redditor’s spouse, and this is something I have done, is to set up a password manager that contains information on how to access every single financial account. Better yet, don’t just add financial information here, but also include instructions on how to access email and contact a lawyer, as well as any other relevant details. Most password managers have a notes section, and the Redditor can instruct his wife to start there.
Contact the Social Security Administration
Somewhere in the Redditor’s notes, he needs to add a reminder to contact the Social Security Administration. Depending on the circumstances, the Redditor’s wife might be eligible for survivor benefits, and she also wants to be able to draw spousal benefits. It might be nothing, but it’s worth a phone call.
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