Liz Weston: 3 time-sensitive money tasks for new widows and widowers

abcnews.go.com:

Making decisions when you’re grieving isn’t ideal, but some money tasks are time-sensitive

Widows and widowers are often told not to make any major decisions for a year or more after a spouse’s death. Grief can cause you to make choices you later regret.

Some financial tasks, though, shouldn’t be postponed. Revising your budget, meeting with a tax pro and securing access to credit can help protect you from unpleasant surprises later.

REVISE YOUR BUDGET

Your income and expenses are both likely to change after a spouse’s death, which means it’s time to draw up a new budget.

A 2020 study for the Federal Reserve Bank of Chicago found income for survivors dropped an average of 37% in the three years after a spouse’s death compared with the three years prior. You may have to figure out how to get by without your spouse’s paycheck or, if you were both receiving Social Security, how to live on a smaller benefit. (When a spouse dies, the survivor typically gets only the larger of a couple’s two Social Security checks.)

Of course, you may have other resources. If you have minor children, you may qualify for additional Social Security benefits. You also may have life insurance proceeds, investment accounts or retirement funds you could use for living expenses. Figuring out how to create a sustainable income stream from these resources can be complex, so consider getting help from a fiduciary financial advisor. If money is tight, look for resources that provide free or inexpensive advice, including the Foundation for Financial Planning’s pro bono financial services and Advisers Give Back, a nonprofit that links people who need financial coaching with certified financial planners.

While some expenses may diminish or go away, others