Developing a Wealth Management Plan After Loss

Dealing with the loss of a loved one and managing their affairs can be overwhelming, especially as you begin to navigate your own future. As you look forward, next steps include focusing on a wealth management plan that reflects your new circumstances. We typically advise clients to review their plans annually or when a significant life event occurs, such as a change in income, marital status, or death. In these situations, we recommend a more immediate or frequent review of your wealth management plan.

We empathize with the emotional burden surviving heirs carry when settling a relative’s financial affairs and the challenge of potentially starting anew individually. We seek to ease this process so you can focus on healing and entering this new chapter. If you or someone you know has experienced the loss of a spouse, partner, or loved one, we’ve outlined the practical short- and long-term actions you can consider to develop a new wealth management plan that considers your current and future assets so you can focus on healing and moving forward.

Immediate Actions for Surviving Heirs

There are some initial steps you should consider to manage their financial affairs, honor their wishes, and ensure your and your family’s well-being.

• Engage Your Loved One’s Professional Team: Consider engaging their attorney, insurance provider, or financial advisor to help streamline next steps and necessary arrangements.
• Determine Your Immediate Financial Needs: If your spouse or partner was the primary breadwinner, review your immediate financial needs and consider temporary financial support if necessary.
• Request Copies of the Death Certificate: Request at least 10 copies of the death certificate from your funeral director, which are necessary for various financial and administrative purposes.
• Locate and Manage Accounts: Identify and review financial accounts, insurance policies, joint accounts, memberships, and subscriptions. Begin managing, transferring, or canceling their accounts as needed and paying outstanding bills.

Non-Immediate Actions for Surviving Heirs

About a month after the loss, you can start addressing the more detailed aspects of managing your loved one’s financial affairs. 

• Consult Your Professional Team: Consider engaging a financial advisor and other professionals to help finalize the estate and develop a plan for your future. Ensure you gather necessary estate planning and financial documents, including their will, trusts, deeds, titles, tax returns, and insurance policies. A professional team can assist you with the following:
  • Taking inventory of assets and liabilities, such as real estate, investments, personal belongings, etc.
  • Coordinating the review and distribution of assets with the appointed executor
  • Performing an estate valuation to help calculate and minimize potential taxes and meet legal requirements
  • Reviewing your insurance policies and retirement accounts to ensure they align with your current and future needs
  • Discussing complex matters such as probate, trusts, taxes, income planning, charitable giving, inheritances, and the rights and responsibilities of a surviving spouse or partner
• Review Survivor Benefits: Research potential survivor, pension, employer, Social Security, veteran, or life insurance benefits available to you as a surviving spouse or partner.
• Notify Financial Institutions: Contact necessary service providers and institutions, such as credit card, Social Security, and mortgage companies, to review next steps.

Develop Your Wealth Management Plan Following a Loss

Once you gain a better understanding of your financial standing, it is essential to develop a holistic plan that provides stability and aligns with your new circumstances.

• Assess Your Finances: Work with your financial advisor to evaluate your new financial situation, considering inheritances, liabilities, and changes in your income. A professional can help you determine if you need to adjust your expenses, create a new budget, or seek investment advice. 
• Plan for the Unexpected: Ensure you’re budgeting for unforeseen circumstances to proactively protect yourself and safeguard your assets. You may consider building an emergency fund, updating your insurance policies, or ensuring you have access to liquid funds.
• Review or Update Your Goals: Assess your short- and long-term objectives and work with a financial advisor to develop a plan to achieve them.
• Update Your Estate Plan: Review and update your estate plan documents, such as deed titles and beneficiary information, to ensure they’re current and reflect changes in details such as marital status and future goals.
• Hold a Family Meeting: Consider holding a family meeting to discuss changes to your estate plan and ensure everyone is informed and aligned moving forward.

The Monarch team can guide you through your options, facilitate family conversations, and draft a new wealth management plan based on your needs and preferences. If you or someone you know is navigating this challenging time, remember help is available to navigate the emotional and financial aspects of this transition. 

While this guide provides essential steps for developing a wealth management plan following a loss, it is not exhaustive. Should you have any questions or concerns or need guidance, we’re here to help. There are separate steps to consider immediately following a death, such as reviewing medical care directives and making funeral arrangements. Please contact us to receive a checklist, if you need guidance on those next steps.