Financial Steps Upon Death Of Spouse

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A few months before their marriage, Heartland Girl had this question for Heartland Boy,

Dear, you must tell me what financial steps to take if you pass away.”

That question caught Heartland Boy by surprise and he had no answers then. However, he realized that death of partner is not something frivolous that can be dismissed easily. (Just for clarification, Heartland Girl never says anything frivolous anyway)

This worry has its roots primarily because Heartland Boy has always been the one taking the initiative in financial planning for the household. To have Heartland Girl suddenly resume this mantle would be challenging and almost insurmountable during the time of immense grieving. While this period is indeed a difficult time, important financial decisions still have to be made. Some might even think that this is a morbid topic and best left not discussed. However, Heartland Boy realized that he …

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Comments

  1. Fred says

    Many years ago, there was a young married couple applied for a BTO 5-rm flat. Like most couples, the flat was under ownership of Joint Tenancy. The man’s parents loaned him $50k to renovate his flat, as he was their only son.

    Unlike today’s BTO, the new flat then needed extensive renovation. Almost immediately after their wedding, the couple flew off for their honeymoon. During the honeymoon, the couple died in an accident. Apparently, the man rented a car and being unfamiliar with the overseas road system, veered off, killing him and his wife. Somehow he demised technically earlier than his wife by a couple of days. They both died intestate.

    The young wife’s parents inherited the entire proceeds of the sale of their new 5-room flat. The groom’s parents gotten nothing. Not even the $50k reno money, which incidentally was their old age money of the groom parents. The childless couple’s parents did not really know each other well, thus the refusal to return the $50k reno money.

    This is a real story, I’m sharing in hope that young couples today leave no room for disputes on the unlikely eventuality of an accident where both may die together.

  2. says

    Hi Fred,

    That is true. in addition, if the wife is younger and they both perish instantaneously, the wife is technically considered to have died later and is hence the surviving spouse.

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