Press Room

A death in the family: Being prepared financially

Money Management

Monthly financial advice
from the MACPA

For release: October 2008

What would happen to your family’s finances if you or your spouse were to die unexpectedly? Would it be easy for the surviving loved ones to get back on their feet financially?

The Maryland Association of CPAs offers these tips to ensure that your family is financially prepared to cope with a death in the family.

Write a will

Everyone should have a will that is kept in a secure location, such as your lawyer’s office or a fireproof home safe, and that is easily accessible if a death should occur. Wills are not just for the rich. They are important legal documents that ensure that your wishes are carried out and that your family can gain access to their inheritance without unnecessary delays.

Keep your documents in order

It will be important for a surviving spouse to be able to write checks, apply for any available insurance or pension benefits and assess the family’s overall financial situation. That’s why it’s best to make a habit of keeping your financial materials in order so that family members can get their hands on the documents they need in an emergency. It’s a good idea, for example, to keep a list of checking and savings account numbers, investment account information, life insurance policy details and any other particulars that will clarify your financial situation.

Stay informed

In many cases, one spouse has been in charge of the family finances and the surviving spouse has no idea where the family stands after a death. Lists of important account details are particularly important in this situation. But it may also be a good idea to leave instructions, as well, that provide information such as the contact person at each financial institution and any other valuable information about the account.

Consider, too, listing your important assets —- such as your home or savings and investment accounts —- and your regular liabilities, including the amount of the mortgage payment or other bills. This information will help the surviving spouse begin to actively manage the family finances.

Check Social Security benefits

Your family members may be eligible to receive Social Security survivor’s benefits if you have paid Social Security taxes and earned enough credits to qualify. The rules are complicated, but generally survivor’s benefits can be paid to a spouse who is ago 60 or older (or 50 or older if disabled) or to any spouse or ex-spouse who is caring for your child who is under 16 or disabled. Ex-spouses over 60 (or over 50 if disabled) are also eligible if the marriage lasted at least 10 years. Unmarried children under 18 (or under 19 if attending up to grade 12 full time) also qualify, as do dependent parents age 62 or older.

You can learn more at the Social Security Administration Web site at www.ssa.gov or by calling (800) 772-1213. You should contact Social Security immediately after a spouse dies if you believe you qualify. Also remember that a surviving spouse —- or your children if you’re not married —- may be eligible for a lump-sum benefit upon your death.

Turn to your CPA

If you are struggling to restore financial order after a death in the family, your local CPA can help. He or she can help you regain your financial footing and address the issues facing your family. Your CPA can also advise you on the best steps to take now to ensure your family is in good financial shape in the event of a tragedy.

Only CPAs are equipped to address your full range of financial needs with integrity and insight. In Maryland, CPAs must pass a rigorous two-day examination, adhere to strict ethical and professional standards, and, beyond college, complete 80 hours of continuing education every two years to be certified by the state — accountants do not.

Your doctor is certified; your lawyer is certified. Make sure your accountant is a certified public accountant.

For CPA referrals in your area, contact the MACPA at (410) 296-6250 or click here.

The Maryland Association of Certified Public Accountants (MACPA) is a statewide professional association that provides leadership, information and services for its nearly 10,000 CPA members, who are employed in private practice, industry, government and education. CPAs are business and financial professionals who have passed a rigorous two-day examination in order to be licensed by the state. CPAs are committed to protecting the public interest, and must adhere to stringent ethical and professional standards and continuing professional education requirements.

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