When a spouse dies, the financial consequences can compound the grief in ways most families never anticipated.
Frozen bank accounts, outdated beneficiary designations, and surprise tax obligations are among the procedural surprises that catch surviving partners off guard
The Schwab Center for Financial Research published an analysis outlining six strategies married couples can use to financially shield a surviving partner. Schwab notes that many couples mistakenly assume all assets transfer automatically to a spouse. The gap between what families assume will happen after a death and what state law permits can be wide.
Schwab’s strategies for protecting a surviving spouse Schwab’s recommendations span estate planning, document organization, insurance coverage, health care, long-term care, and Social Security timing. Each addresses a specific failure point that surviving spouses commonly encounter, and each depends on decisions made well before death. 1. Refining the estate plan Many married couples assume all assets will transfer to the surviving spouse when one partner dies, but that assumption is wrong in many states, the Schwab Center for Financial Research warned.