Scenario: My husband suddenly died and I feel lost! What do I do now??

Losing a spouse is an emotionally overwhelming experience and navigating the financial and legal steps that follow can feel daunting. In New Jersey, there are several important tasks to address after the first spouse's death to ensure the proper handling of their estate and protection of the surviving spouse's rights. Here's a brief guide to help you through this process.

1. Obtain the Death Certificate

The first step is to secure multiple copies of the death certificate from the funeral home or the municipality where the death occurred. These will be needed to settle financial accounts, claim life insurance, and initiate probate if necessary.

2. Locate the Original Will and Initiate Probate

If your spouse left a will, you should take steps to locate the original version. In most cases, it will not be necessary to probate the will, but if probate is necessary, you will need the original. Probate is a relatively simple process of validating the will and having an executor appointed to settle the estate. If there is no will, the estate will be distributed according to New Jersey's intestacy laws. Consulting an estate attorney can help simplify this process.

3. Notify Financial Institutions and Government Agencies

Contact banks, credit card companies, insurance providers, and other financial institutions to notify them of the death and update accounts. Additionally, inform the Social Security Administration, as survivor benefits may be available. If your spouse was a veteran, reach out to the Department of Veterans Affairs to explore any benefits.

4. Review Joint Assets and Beneficiary Designations

Jointly owned assets, such as bank accounts or real estate held as "tenants by the entirety" or as “joint tenants with right of survivorship” typically pass directly to the surviving spouse. Additionally, review accounts like retirement plans, IRAs, or life insurance policies to determine if the surviving spouse is the designated beneficiary. These assets usually bypass probate but still require documentation to transfer ownership.

5. Assess Tax Implications

The death of a spouse may have tax implications, including filing a final income tax return and considering the estate's potential tax liability. New Jersey does not currently impose an estate tax but does have an inheritance tax for certain beneficiaries. Consulting a tax advisor can help ensure compliance and identify potential savings, such as portability of the deceased spouse's federal estate tax exemption.

6. Update Estate Plans

After the initial estate matters are handled, it would be wise for the surviving spouse to update his or her estate plan. This includes revising wills, trusts, power of attorney, and healthcare directives to reflect the change in circumstances. Doing so ensures the surviving spouse's wishes are accurately documented moving forward.

Final Thoughts

The period following a spouse's death is challenging, but taking these steps ensures that their estate is managed properly and that the surviving spouse's financial future is secure. Seeking guidance from legal and financial professionals can provide clarity and support during this difficult time.

As always, navigating legal matters can be complex and requires the guidance of competent legal counsel to protect your rights and interests. Don't leave important matters to chance—retain reliable legal counsel to guide you every step of the way!