Estate Planning for Widows and Widowers
When your partner passes away and you are left to deal with the emotional, medical, and financial aftermath, it is often a stressful situation. Below are some helpful tips for estate planning for widows and widowers.
Review and Update Beneficiary Designations
Widows and widowers should review the beneficiary appointments for any insurance policies, 401(k)s, and IRAs. If your spouse was a named beneficiary, you will want to update that. If your will discussed those assets and named beneficiaries at all, you also want to make sure the will matches the beneficiary designation of the asset.
For example, if your spouse was listed as the beneficiary of your life insurance policy, you will want to update that designation. If your will made any mention of your life insurance policy and your spouse as beneficiary, you will want to make sure your will is updated to reflect the new beneficiary designation. Remember, beneficiary designations made directly with insurance policies, 401(k)s, and IRAs control over designations made in your will.
Update Title Documents
You also want to ensure all titles for your assets are updated. This includes bank accounts, cars, boats, and homes. Anything that has a formal ownership attached to it should be reviewed and potentially revised. The title needs to have the proper owner listed in case you wish to sell the asset or need to borrow money against it.
Update Legal Documents
Widows and widowers will also want to review their previously drafted legal documents, such as your will, power of attorney, and healthcare surrogate. If your spouse was appointed as an agent or your personal representative, you will need to update those documents. You may also want to review these documents to ensure they still reflect your wishes, too. Be sure to contact a local attorney to ensure the documents are properly updated.