After someone dies, there’s often a moment when the thought suddenly hits you: what happens to the money now?
That can feel particularly frightening if your other half has passed away and you’re wondering how the mortgage, bills and everyday expenses are going to be paid.
As a financial adviser who’s worked with grieving families for years, I’ve sat with many people facing this exact question – so I’ve shared my best advice for navigating the process in this video.
If you’re wondering what needs to happen next, here’s a summary of my recommendations – so you can make the decisions that are right for you and your family.
Take your time
The biggest challenge most people face in the first couple of weeks after losing someone is cash flow. Because as soon as the bank has been informed of the death, some accounts could be temporarily frozen to protect that person’s estate.
That’s why my most important piece of advice here is to take your time – don’t start with the administrative side of things until you’re ready to deal with the flow-on effects.
Remember, you don’t have to start making phone calls as soon as someone passes away.
You control the flow of information
Banks, Centrelink, insurance – none of these places are automatically notified after someone dies. You need to update them all, but it’s absolutely fine (in fact, recommended) that you do it at a pace that suits you.
Because once they are notified, the wheels will certainly start moving – so make sure you’re emotionally and mentally prepared when they do.
Be informed about your expenses
Before notifying the bank, it’s worth reviewing the account or recent statements to see which direct debits and bills are being paid from it. Is your electricity bill, mortgage or another important payment linked to this account?
Once you know, you can take the necessary steps to manage this by redirecting payments to another account where appropriate.
If you’re in the depths of grief and unable to do this, ask a trusted loved one, friend or financial adviser to help take the weight off your shoulders. You don’t have to go through this alone.
If you need help with some of the administrative burden, would like advice about rebuilding your finances after loss, or simply need to talk to someone who’s familiar with your situation, feel free to book a conversation with me here.
Want to know more? Read my articles “What Your Adviser Should Actually Do When You’re Grieving” and “Superannuation as a Widow: What You Need to Know”.
