death of a spouse,financial questions?

[tjmw2727]

If he was Federal a couple of immediate suggestions.

1. The Life Insurance is set into a money market fund and you will receive a checkbook for that fund. Sit on it for at least six months before you make any decision.

2. If you will be getting a survivor benefit, and he was covered under a Federal Health Plan maintain that health insurance. You will have the opportunity annually to change carriers, but if you give up the FEHP benefits you will never be able to get them back.

3. Wait at least six months until you do anything else.

This exactly - except I would say wait a year if you can before making any major decisionts.

I lost my Dear Husband 2 years ago (feels like yesterday) and I also have two children.

Definatley kep the LI and your health insurance as is for as long as you can. Also go to your SS office and apply for benefits.

When your head clears consider looking for a local bank with a better money market % rate and if it is greater than your LI mm rate then move the $$. Otherwise leave it and forget it as long as you can.

Down the line it "may" make sense to pay off your mortgage but I would definately find a professional for advice. You may qualify for no cost $ counseling and if not do some research on fee based vs commission based financial specialists. If possible get recommendations from trusted friends.

This will give you some time to recover and take the time to decide the right course of action.

It won't be easy but you can get through this - my thoughts and prayers are with you xx oo.

 

[KristiKelly]

I do not have any advice, but I just wanted to say, I am so very sorry for your loss.

Same here, no advice but I am SO sorry for your loss. My thoughts and prayers go out to you and your children.

 

[MKCP1984]

Same here, no advice but I am SO sorry for your loss. My thoughts and prayers go out to you and your children.

I just had to say sorry for your loss, and your family will be in my prayers.

 

[taekwondo mom]

SO sorry for your loss. My thoughts and prayers go out to you and your children

 

[RitaE]

Thank you forvall your thoughs and prayers. I have been to ss and my girls are getting survivor benefits. I have an estate attorney and I am setting up trusts for both daughters along with guardians God forbid something happens to me. From what I hear all of you offering I am going to leave in savings account for now and not make any big decisions for at least a year.
Thank you again
Lisa

Then you are doing a really good job. Just take care of immediate urgency right now and put the rest in safe auto-pilot. Let the experts earn their fees. Your head probably isn't in a place to be able to make complicated decisions.

 

[dcfromva]

At first I was going to pay down the mortgage but the reality is that I have no pension or 401k. DH worked in a civil service job so we saved in his 401 and he had/has a pension.
Does anyone have and idea's
thanks
Lisa

Lisa,
I am so sorry for your loss.
Question for you--Was your DH's job federal civil service and have you spoken with a benefits counselor from your DH's job? If he was federal, you should have the option of converting your DH's 401K--into your beneficiary partipant 401K account. I've taken this info from the Thrift Savings Plan (TSP) web site:

"Spouse Beneficiary. In the event of your death, if your spouse is entitled to a share of your account, a beneficiary participant account will be established for your spouse in his or her own name. If your spouse's share is $200 or
more, the TSP will maintain this beneficiary participant account, and the entire share will be invested in the Government Securities Investment
(G) Fund until your spouse makes a different investment choice or chooses to withdraw the money as a single payment, monthly payments, annuity, or a combination of these options. "

 

[Eastern]

OP, I am so very sorry to hear of your loss. I'm sending you big hugs, and will pray for all of you. Its good you have so many supportive family and friends but I agree with many here. Try to wait a year before making any major decisions.

And re the link above for an elder law attorney - the link won't work, at least for me. I'd like to check this out for my mom and in laws, as I'm sure they're not aware of this type of thing.

Try googling nelf.org for National Elder Care Foundation. Then click on the link for 'find a CELA' (certified elder care lawyer). This is how we found several elder care lawyers in NJ.

 

[PatsMom]

I am sorry to hear of your loss. Being a single parent is difficult, especially with a child who has special needs.

You've gotten some really good advice. Sit tight and adjust to your new life. Take care of your own potential legal issues. Sign up for social security. Make sure you understand the responsibility of being a representative payee for your children. If you elect to save the money for college, you will have to meet certain requirements for identifying the money - you can't just pop it into an account in your own name.

When things are more settled in your mind, find a fee financial planner who will help you identify what your future needs are and make some recommendations on how to reach your goals. They can also give you some general information on establishing a special needs trust if your child requires one but they will refer you to an estate planning attorney to do the work.

Good luck in this difficult time.

 

[leebee]

Lisa, I am so sorry to hear of your loss. I hope you and your children can find peace in the coming days.

My dad died when I was 13, with siblings ages 10, 5, and 4. My mom used the life insurance to pay off the mortgage. At the time, all she could think of was "what if I can't make the payments? Where will we live?" In retrospect, that wasn't necessarily the best thing to do. First, she lost any tax deduction from mortgage interest that would have been useful to pay down tax liability. Secondly, when we reached college age, having no mortgage worked against us in the area of financial aid. Colleges expected her to take a second mortgage to help with college.... even though she was a single mom with three kids living at home.

If she had it to do all over again, she would have put the money away for a year while she figured out what directions our new life would be going. It sounds like you have made some good decisions already. Good luck in the coming months... it will all be OK again someday.

 

[swilshire]

So very sorry for your loss.

You've received excellent advice. Getting the children signed up for social security was a good first step. Your special needs child will likely have coverage for life based on your husband's earnings. You are also probably entitled to his pension benefits from work since he passed before he retired. Typically this is based on his high three year's salaries.

If you can live on the social security and pension, I would pay most of the life insurance on your mortgage. You'll have a lot less to worry about day to day once that is paid off.

Sheila