More than 1.49 million women and almost 445,000 men become widowed in Canada every year. (Source: Statista.com) The death of a spouse is emotionally devastating and you will need time to grieve. When you’re newly widowed, you need to think clearly and make good decisions in the midst of your grief.
It’s usual for you to be your spouse’s executor, and losing a spouse leads to the need to make many important decisions that can be daunting but must be made sooner, rather than later. This is a time when close family members or friends and trusted advisors can often do a lot of the leg-work.
Here are a few suggestions to help keep track after losing a spouse.
1. Make funeral arrangements. Did your spouse purchase a cemetery plot or make other pre-arrangements? If not, you will need to select a funeral home. In either case, you will need to meet with the funeral director. Be sure to obtain multiple copies of the death certificate from the funeral home.
2. Avoid major decisions. If you are grieving the loss of a partner or close family member, now isn’t the time for major life decisions. This includes moving, discarding keepsakes and mementos, and changing your job. When you are mourning, making big decisions about your life ahead can be exceedingly difficult. It is best to wait until your head is clear and you can properly weigh your options.
3. Gather information about any life insurance policies and, if you are the beneficiary, contact the life insurance companies to make a claim. They will request a copy of the death certificate and other documentation to validate your claim. Proceeds are usually disbursed within 30 days after all requested materials have been received.
4. Apply for government benefits. A surviving spouse, child, or other family members when there is no surviving spouse or child, can apply for the Canada Pension Plan (CPP) lump sum death benefit and they might also be eligible for survivor benefits. Children may qualify for survivor benefits into their early post-secondary years.
5. Don’t become an ATM for others. Shortly after the death of a loved one, we are all more emotionally vulnerable; be wary of friends, family or charities that approach you for money.
6. Once the estate is settled, update your financial plan. This involves reviewing your investments and making adjustments to reflect your risk tolerance and cash flow needs. Review your will and power of attorney. If changes are necessary, have your lawyer prepare new documents for your signature. Don't forget to discuss your new plan with family and executors.
Mani (22-July-2021)
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