Preparing BFF for Widowhood

<p>Odyssey, you are correct. A POA is only in effect as long as the person is alive. All bets are off once a death occurs. I have good experience with this.</p>

<p>To me what is most important is getting him to sign POA papers now. If he should die, I would not notify the bank yet, because once that happens the accounts are frozen, unless the accounts are in joint survivorship. It is important to get PIns and computer passwords. This way you would have access to the accounts without a problem from the banks.</p>

<p>If they do not already have a revocable living trust I’d strongly suggest putting one in place ASAP. Depending on the total networth, a trust can provide very attractive tax benefits and it forces you to locate and identify each account/asset. This exercise would at the very least give the OP’s friend an opportunity to get a much better understanding of their finances and holdings.</p>

<p>They should BOTH have wills, preferably leaving everything to each other and naming each other as executor, and BOTH have medical and legal POAs, preferably naming each other as primary. She could step off a curb tomorrow and end up incapacitated or dead, before he even has a chance to have surgery! As was suggested upthread, suggesting to him that they ought to do this together, for each other, may make it easier to broach.</p>

<p>In this state (CT) one can print the POA forms off the state internet site. They would just need to have them notarized, which their local bank branch where they are customers will do for free. Hospitals also have people who will do this, or they can go to a public notary. (It’s usually pretty cheap.) Don’t wait on this! A person can become incapacitated in a flash, and then it is too late. </p>

<p>States have rules about who is assumed to be an heir if a person dies intestate. The surviving spouse is undoubtedly primary, but there may be percentages for children and others. Your friend does not want to end up having to a) pay a court-appointed executor big bucks when it isn’t necessary, and/or b) have to sell her house or other property to distribute the estate among heirs. A very simple will is probably all that is required.</p>

<p>Last year my father died, and I helped my mother through all of the financial stuff before and after. Crucial things that simplify matters infinitely: having bank accounts, investment accounts, and real estate in joint ownership with right of survivorship. If he dies, she wil be shut out of any accounts held in his name alone, even if she is the sole heir, until after probate, and that is a royal pain. She does not need to open accounts in her own name if she is listed on all of the others. How real estate is held can have a major effect on probate costs and estate taxes. Everything else, such as utilities in his name, can be dealt with later: yes, changing them all over is another administrative task, but not something worth focusing on at a time of crisis like this, IMHO. The utilities will continue to deliver service, and don’t care who is sending the checks.</p>

<p>It is important to talk with the husband and identify all of the accounts, including insurance providers (life, auto, homeowners, liability, etc), all utility accounts, all bank accounts, investment accounts, CDs and retirement accounts, etc. Taxes (federal, state, and local)–what roughly is due, and when–are also important. Safe deposit box location and key is also crucial. I did this with my father and mother, and made a master list of what was what and when everything was paid and from where, because my mother was having to take over and had never done any of it. If they have a trusted adult child, that person could sit and do this with their parents. If not, some kind of trusted financial advisor or even an attorney. We never had to consult an attorney, but that was beccause I was able to handle evertything and the crucial accounts and items were held jointly. Your friend can initiate this conversation in the mode of “I need to step up to the plate and help be responsible for this stuff so that you can concentrate on getting well.”</p>

<p>Best of luck to her.</p>

<p>As you can see by my screen name, I was widowed 15 years ago when my husband and I were 33 but his was a sudden death.</p>

<p>All of the above are excellent ideas! Thankfully though, I already managed all our household finances. I have ‘been there, done that’ but if he passes, she is only seeing the tip of the emotional trauma that will be coming.</p>

<p>I have two additional suggestions:

  1. Find a great family/grief counselor and start visiting NOW. It’s fantastic that she has a BFF to whom she can vent but can she also give professional guidance? There were many issues that I definitely did not want to share with anyone. Also if he unfortunately passes, it is well documented that after death, widows and widowers can and will do some strange, out-of-character things after a spouse’s death. Professional guidance is critical. It is also very easy to get addicted to some of the meds that some doctors will provide ‘to aid sleep or ease the depression’. I have two friends that did. The meds mask the pain but there’s no way around any of the grief stages. She must go through them all eventually and the last thing she needs is drug withdrawal. If she has kids at home or college, they will need professional guidance; otherwise, she will have to be their counselor while she is struggling too. Also, sounds like her husband could also benefit from counseling to help him prepare himself and his family, even if he hopefully does make it through. So many men are unwilling to face their mortality that they forget about protecting their families. From my side of the fence, I see it as weakness, not strength. For example, my husband canceled a $100K life policy 3 months prior to his death, without my knowledge, even though cost was not an issue. I guess he thought he would live forever…</p>

<ol>
<li>I pray that her husband survives. However if death is possible, near the end and for the 1st year after death, she may not be emotionally able to handle the family finances which is a huge, additional burden. I would recommend that they share all their financial information NOW with a trusted CPA. They can guide her and her husband and help determine now if she can financially afford to continue their current lifestyle if he passes as the medical bills can be enormous. A lot depends on their ‘state of residence’ rules on estates (what passes through and what doesn’t). Later, the CPA or an accountant can take over the management and payment of medical and household bills for her anytime she desires or needs help. I’ve seen families lose their homes to foreclosure and/or declare bankruptcy simply because the surviving spouse (both male and female) couldn’t emotionally handle the burden of finances.</li>
</ol>

<p>In our adult life, everything revolves around our credit scores (loans, insurance rates, even getting a job). You’d be amazed just how many women have NO credit score because their social is never used on any secured loans or credit cards.</p>

<p>The primary lesson I learned is that tomorrow is unseen and none of us are promised tomorrow. So for all of you who read this or have graciously posted such great advice, are you also prepared to leave your home tomorrow morning and never return?</p>