What The Surviving Spouse Will Live On

     One major concern for most widows and widowers is how the surviving spouse will continue to support themselves. As a couple, you may have relied on 2 social security payments and 2 pensions. That will now be cut in half. Retirement funds in the deceased spouse’s name should also become the survivors. Here are some incomes you can set up for when a spouse dies:

• Social security– To collect the survivor benefit to which you might be entitled, you must file a claim.  Unfortunately, you will not be able to collect both payments.  However, If you and your spouse were at full retirement age when getting benefits, then the SSA will look at both payments and allocate the higher benefit to the surviving spouse. 
• Pension– If your spouse had a pension, you will continue to get a percentage of it if he or she opted into the survivor benefit. It’s a good idea to know if you can expect this income before they pass on so you can plan accordingly.  Contact the financial institution that manages their pension for more information.
• Retirement Accounts – Make sure to name your spouse as the beneficiary of your retirement accounts. You can then inherit any IRA, 401k, 403b funds without probate this way, The funds can be rolled into a spousal IRA, so you have control over the use and enjoyment of the funds. 
• Life insurance – If you are the beneficiary, you must contact the insurer to notify them of death. You’ll ask to start a death claim in order to have them pay the proceeds to you.
• Savings – You will still have access to any joint bank accounts, brokerage accounts, or other investments. 

Probating the Will

     Probate is a slow and costly process but fortunately, probate is often not required when the first spouse passes.  

Review Your Estate Plan

     Since everything was in both of your names, changes will need to be made to your estate plan after the first spouse passes. Your beneficiaries and POA will need to be updated, but you can take your time.

     The best way to protect your future is to contact your local elder law attorney. They will ensure you have the best plan for you and your family.