What to do When Your Primary Income Earner Dies

When someone you love dies, financial issues are generally not your first priority.  But, the death of a loved one may require you to make big decisions that have financial consequences, such as making funeral arrangements and disposing of property.

The situation is even more complex when the person that dies is the primary income earner in your household—someone you rely on.

What can you do?

Here are some steps you can take to manage financial issues when someone dies:

Get support.  Keeping things organized is hard to do when you are under stress and emotional strain.  Get a trusted friend, family member, member of your faith community, or work colleague to help you manage all of the necessary tasks and decisions you must make.  They can ask questions to help clarify what you need to do and assist you in staying organized.

Determine your income.  If you relied either completely or in part on the income of the person who died, start by making a list of your other income sources.  If you don’t have an income, figure out if you have savings you can use to support yourself in the short term.

File life insurance claims.  If the individual had life insurance, find out if you or your dependents were beneficiaries.  If so, you will need to file a claim.  You can get a claim form by calling or visiting the website of the life insurance company. When you complete your claim form, you will have to submit it with a certified copy the death certificate.

File for Social Security benefits.  If your spouse died, you may be eligible for a one-time death benefit of $255.  You and any dependents may also be eligible for survivor benefits.  Contact your local Social Security Administration Office or visit: http://ssa.gov.

Identify other income sources. For example, you may want to check with your partner or spouse’s former employer to see if they offer support to family members of former employees. If you were receiving alimony or child support from the deceased, you may be able to continue to receive support from his/her estate, though you will likely need the help of an attorney to claim it. If you cannot afford an attorney, you may be eligible for legal aid. 

Apply for public benefits. With your change in circumstances, you may be eligible for:

• SNAP
• TANF
• Medicaid/Medicare
• or other public or private assistance programs

Add up all of your expenses.  Make a list all of your expenses.  Start by gathering all of your regular bills. Then, list all of your expenses that don’t have bills—food, gasoline for your car, and purchases of household supplies and clothing. It may be useful to start a bill calendar if you have not paid the household bills in the past.  Get a calendar and write the dates and amounts of regular bills. There may be expenses you can or will need to eliminate because of the change in your situation.  Some of these may be immediate adjustments, such as groceries, cell phone use, and personal care expenses.  Other changes may take several months to implement, such as housing, transportation, and health care coverage.