What Should a Surviving Spouse Do?

While most of us had a wonderful holiday season and enjoyed time with family and friends, others were dealing with the loss of a loved one.  This was my grandmother's first Christmas without my granddad and they were married for 65 years.  Her Christmas traditions of cooking and wrapping presents and planning for the eleven grandchildren and thirteen great grandchildren were replaced with what steps to take for wrapping up my granddad's affairs and planning for what she would now do without him here.  

The emotional trauma of death is hard enough on people, but the financial uncertainties and transactional headaches that come along with this make things so much more complicated.  For people who just lost spouses, there are several things that need to be done, but there is a timeline I would suggest so that things seem more manageable and not so overwhelming.  

Immediately:  

a.  Notify family and friends and make sure the surviving spouse has constant support.  

b.  Locate insurance policies, will, safety deposit boxes, military records, bank records, etc

c.  Obtain ten copies of death certificates.  There will be several situations where the surviving spouse will be asked for a death certificate, such as banks, insurance companies, DMV, the courts

d.  Contact the deceased spouses' health insurance company or Medicare to find out if there is any coverage for the surviving spouse 

e.  Make sure they know how to keep the household running, which means they will need to access the spouses's bank accounts right away.  Typically, the spouse with have one of three types of accounts:

        1)  Joint Account with Rights of Survivorship, hopefully with surviving spouse listed as the joint                account owner, which means they will have immediate access to the funds

        2)  Payable on death account:  Hopefully, the surviving spouse will be listed as the beneficiary,                so they will have immediate access to the funds once they are able to produce a                                    death certificate  

         3)  Individual account:  If the account is solely in the deceased spouses' name, the surviving                       spouse will need an order from the court appointing them or some other family member the               administrator or executor of the estate in order to access the funds.  This may take some                     time, so the surviving spouse should be prepared just in case this is the only kind of account               available to them.

In the first few weeks after death:

a.  Notify the Social Security Administration because there are some funds that may need to be returned

b.  Contact financial advisors and tax advisors

c.  Apply for life insurance, veterans benefits, pension, social security or any other benefits that the surviving spouse may be entitled to

d.  Apply with the court for the spouses' elective share

e.  Pay essential bills

In the first year after death:

a.  Work with a CPA to file the taxes for the decedent's returns

b.  Find out if the surviving spouse will need to pay estate tax

c.  If there is a trust, have an attorney help administer the trust properly

d.  Make sure surviving spouse has an estate plan

There are so many issues that arise when a spouse or loved one dies, and we need to really think about what kind of plan we will have in place when the time comes.  If you need want more detailed information, please contact your tax professional or estate planning attorney.

What should you do with your will after you execute it?

In North Carolina, if no one can find the will after you die, it will be presumed that you destroyed it and it will be deemed revoked.  Your property will then pass by intestacy, meaning the state of North Carolina will determine who you property passes to.  

Even if every member of your family has copies, the North Carolina courts will require an original.  If there is no original, it’s possible to probate a copy, but the witnesses to the will will have to come forward, which is not possible at times, and there will be a lot of time and costs associated with getting a copy probated.

Where should you keep your will?

With the lawyer—Some attorneys will keep an original on file in their office, although I don’t think this is being done as often as it used to be because it creates liability for the attorney

In a firebox at home--This is a good idea as long as the people in charge of your affairs after you die knows where the firebox is.

File with the Clerk’s office—You can file the original at the Clerk's office, but for a small fee.

In a safe at home—Although these are not always fireproof, this is a reasonable alternative, as long as someone knows the will is located here.

Safety deposit box-- This is not the best idea, as banks in North Carolina will require a death certificate, a fee, and possibly a court official before they will allow a family member to access the safety deposit box.

In a freezer bag in the freezer—the freezer will survive a surprising number of calamities (I’m from Carthage---and you’d be surprised how many people from the country use this method).  Freezing solid eliminates mold and moisture issues.

It's just as important to make sure the people who will be in charge of your affairs when you die known where your will is located, and that this location is a safe place, as it is to execute a will at all.  If you have questions about where to put your will and how to keep it safe, please contact an estate planning attorney.