The Surviving Spouse’s To-Do List, Part 4: Change of Ownership

Losing your spouse is one of the most difficult setbacks to overcome. Navigating through the different stages of grief leaves many feeling alone and afraid. This leads to vulnerability and, all too often, the widow(er) becomes the victim of crooks and/or the pressure to make decisions they do not fully understand.

Today, we’re sharing with you Part 4 of our 6-part series: The Surviving Spouse’s To-Do List. Each individual’s situation is unique, so this is meant to serve as a guideline. We urge you to wait before making any life-altering decisions and, of course, seek the advice of a trusted professional when it comes to insurance or financial matters.

Transfer of Ownership

If you are like most married couples, you and your spouse accumulated some assets together throughout the years. You likely also have several bills and policies that are in both your names. You will need to remove your spouse as a named owner/insured, when getting your affairs in order. Again, we urge you to seek legal advice before making any big changes, particularly before the estate has gone through probate. One wrong move could lead to hefty tax implications later.

Below are a few items that should be checked for ownership:

Motorized Vehicles, Recreational Vehicles, & Boats

If there are any vehicles or other assets titled in your spouse’s name only or, if you are jointly listed, they may need to be re-titled out of your spouse’s name. Contact the Department of Motor Vehicles in your state for rules specific to your region.

Credit Cards

If your deceased spouse held credit cards in his/her name only, those cards should be canceled. Typically, those bills will be paid out of the estate.

If you were listed jointly on a credit card, notify the company of your spouse’s recent passing. Ask them to remove her/his name from the account. Payments on these accounts should be made on time to ensure your credit rating doesn’t suffer.

Pro tip: Some consumers experience difficulties when trying to get a new credit card in their name. This typically occurs when all or most of the credit was listed under the spouse’s name only. When applying for a new card, let the lender know that you shared these accounts with your spouse. Do so even if your name was not listed on the account.

Bank Accounts

Joint bank accounts automatically pass on to you, as the surviving spouse. Notify the bank of the recent changes and ask them about the process for retitling and changing the signature card on the account. If you own any stocks or bonds, be sure to notify your financial advisor of your spouse’s passing.

If you spouse held any bank accounts in his/her name only, those assets will have to go through the probate process. Trust accounts are the exception to this rule.

Insurance Policies

Hopefully you have been able to locate the paperwork on any household insurance policies. Auto and homeowners policies will need to be revised to list your name only. Many homeowner insurers require a copy of the death certificate, before making any changes.

If you and your family are currently covered under your spouse’s employer-based medical coverage, notify the health insurance representative immediately. In most instances, you should be eligible for continued coverage through COBRA for up to 36 months. There is typically an increase in monthly premium, and you must remain up-to-date on your premiums to continue with this coverage.

Life insurance policies should be reviewed for any necessary changes. If your spouse was the listed beneficiary on a policy, contact your insurance representative to have that modified as soon as possible.

Pro Tip: Some employers allow the surviving spouse to continue with their current policy. Since your current premium is significantly less than COBRA, check with your spouse’s employer to see what their specific rules are.

Safe Deposit Box

While the rules vary from state to state, most safe deposit boxes require a court order to open, when rented in only one name.

Will

If your will provides for property to pass to your spouse, it should be updated. You may want to contact your estate planner for assistance.

General Finances

Like the credit cards, any outstanding debts/bills shared by you and your spouse should be kept in good standing. Anything in your spouse’s name should only be passed on to the executor of the estate, to be paid by the estate.

Do not immediately make permanent significant financial decisions, such as selling your home, moving or changing jobs. You will need some time to consider your situation before you can make these decisions responsibly. If at all possible, do not rush into a decision you may later regret.

As previously mentioned, we urge you to take your time making any significant decisions. Take a moment to grieve, review your current financial situation, and consider where you would like to go, moving forward. Your primary focus should be on healing from this devastating loss.

Stay tuned for Part 5, where we address the next items on your to-do list. Don’t hesitate to contact us with any questions, at 1- 866-450-2424.