Any way you look at it, the death of a spouse is difficult. Not only has the surviving spouse lost a partner, confidante and possibly co-parent of their children, but now they must navigate life without their beloved spouse at their side.

And that just covers some of the emotional aspects of widowhood. From a financial standpoint, losing a spouse may create many challenges to overcome as the surviving spouse seeks to remain financially stable and approach the future with confidence. While this isn’t an exhaustive list, let’s look at some of the key actions a recent widow or widower can take regarding their finances.

Immediate actions
One of the first things you should do is contact Canada Revenue Agency to inform them of your spouse’s passing, so you can apply for Canada Pension Plan survivor benefits and the one-time death benefit of $2,500 (with a possible top-up of another $2,500) if your spouse was a CPP contributor, and potentially the Guaranteed Income Supplement and Allowance for the Survivor payment if you are eligible. If your spouse had any pension plans (workplace or otherwise), you could be eligible for survivor benefits or a lump-sum payment.

You may also wish to notify your spouse’s financial institutions. If your spouse had an individual bank account and/or registered plans like RRSPs, RRIFs and TFSAs, those will be temporarily frozen pending settlement of their estate. If you held bank accounts jointly with your spouse, then with the proper documentation (e.g., death certificate, deceased spouse’s will) the bank can transfer full account ownership to you, granting you continued access to funds in the account. This is important if funeral-related arrangements haven’t been prepaid, or if bills are typically covered from that account. Ideally, you should also have your own bank account in case you encounter a delay in accessing any joint accounts.

It’s the same process for credit cards, investments, etc. Having liquid assets is always valuable, but especially at the time immediately following a spouse’s death. If your spouse paid bills (manual or automated) from a bank account registered only in their name, contact the payees to make other arrangements.

To discourage fraudulent activity, you should consider canceling your spouse’s credit cards and government-issued identification cards. Similarly, consider canceling your spouse’s subscriptions, memberships or services that you don’t wish to maintain.

It's also crucial to contact your lawyer and locate your spouse’s will, so the probate, estate settlement and disbursement processes may begin. If you’re named executor of your spouse’s estate, your lawyer and/or trust company consultant can help walk you through the necessary steps. If your spouse had a life insurance policy, notify the insurance company so you can make a claim.


Longer-term tasks
While those are some of the main tasks to address shortly after your spouse’s passing, you should also stay focused on the long term. Widowhood may present financial obstacles and scenarios where you must take action to help maintain ongoing financial health and stability. For example, if you hold your own insurance coverage, then assess your policy (or policies) to ensure the coverage remains adequate given your changing life circumstances, especially if you had coverage under your spouse’s plan(s).

There are also things you should review, in case you need to make changes. They may include:

• Policies, plans or accounts where you’ve named your spouse as beneficiary
• Title on your home and other properties
• Ownership of any vehicles
• Your will, estate plan and powers of attorney

Once life has settled down after your spouse’s passing, it’s time to assess your overall financial situation, so you know what you have and what you owe. Create a household budget (or revise if you have one) to help you manage cash flow and debt obligations. Establish an emergency fund to cover unexpected major expenses, or if you’ve already got one, be sure it holds enough cash given that you may have less income to rely on.

Consult with an advisor about your financial plan and any adjustments you may need to make, especially if you’ve gone from two incomes to one, or from one income to none. During this time of grief, you might be prone to making impulsive financial decisions, so an advisor can help keep you on the right path. Determine if you’ll stay in the family home or will move. There are financial considerations for each option that your advisor can help you evaluate. You may also wish to rethink your retirement goals and retirement plan, as becoming widowed may necessitate some changes. And don’t forget you’ll need to file your spouse’s terminal (i.e., final) income tax return – that’s also something an advisor can assist with, if required.


You’re not alone
Regarding both the short-term and long-term actions you need to take, it’s important to lean on family, friends and financial/legal professionals to help you get through this difficult time. Receiving adequate support and guidance will go a long way toward addressing the tasks that must be completed, so you can get everything resolved and look to the future with hope and peace of mind.