Losing a loved one such as your spouse or partner is one of the most difficult experiences you can face. Amid the emotional turmoil, the need to manage practical matters such as finances can add stress. While it’s impossible to prepare emotionally, understanding the financial steps that need to be taken can help make this time a little less overwhelming.
Retrieving the will
Locate your partners will (if they had one), as this will detail who has been appointed as the executor of the estate to carry out the instructions in the will including distribution of personal assets.
If your partner does not have a will, the law determines where the assets will go. This is called intestacy and differs between each state or territory.
Arranging and paying for the funeral
After a spouse passes, one of the first major financial tasks is arranging the funeral. If your spouse left instructions in their will, such as details about burial or cremation, this can help guide your decisions. Additionally, some people prepay for their funeral services, so it’s worth checking whether this was arranged.
If the funeral hasn’t been prepaid, the costs can sometimes be overwhelming. According Moneysmart, funerals in Australia can cost anywhere from $4,000 for a simple cremation to $15,000 for a more elaborate burial. If you’re not sure where to start, there are several options for paying funeral costs.
- If your partner had a separate account, contact their bank to notify them of the death and request a release of funds from the account to pay for the funeral expenses. You may need to provide an invoice from the funeral director, a certified copy of the will (if one exists) and a signed withdrawal form endorsed by the executor/s. You bank will confirm what documents you need and step you through the process.
- You may be eligible for a bereavement payment through Centrelink which could be a lump sum or a short-term payment. You can find out more about bereavement payments by visiting the Services Australia website.
- If your partner was receiving a pension from the Department of Veterans' Affairs (DVA), you may be eligible for a bereavement payment. You can find out more about bereavement payments by visiting the DVA website.
- If you’re unsure how to cover the funeral expenses while you’re waiting to be deposited or reimbursed the funds, ask the funeral director if they offer payment plans which can help ease the immediate financial burden.
Obtaining the Death Certificate
Early on you will need to obtain your spouse’s death certificate which is usually applied for by the funeral director and provided to you. It can also be applied for through your state or territory's Registry of Births, Deaths, and Marriages.
This document is essential, as it is used to notify various organisations, close accounts, claim entitlements, and deal with your spouse’s estate. It’s important to keep it in a secure place, as it will continue to be needed throughout the process of settling your spouse's financial affairs.
Informing service providers
Once the initial arrangements are made, the next step is to inform various service providers of your spouse’s death. Many companies will require a copy of the death certificate to make changes or close accounts. Below are some of the organisations you will likely need to notify:
- Financial institutions: Contact your spouse’s bank to close their accounts or change them to your name. It’s essential to do this as soon as possible to prevent any unauthorised transactions. If you held joint accounts, speak with your bank about your options for keeping the account open under your name.
- Utilities: Contact providers for electricity, gas, water, mobile phone and internet services to transfer accounts into your name or cancel services that are no longer needed. You may also need to update the billing and contact details.
- Insurance providers: Review your policies such as health, car, and home insurance. Some insurance policies can be transferred into your name, while others may need to be cancelled or reissued.
- Memberships: Many people are often signed up for a variety of memberships or subscriptions, such as gym, streaming services, and club subscriptions. Cancel or transfer any that your spouse held.
- Driver’s licence and vehicle registration: If your spouse owned a vehicle, you will need to notify the Department of Transport to transfer the registration or sell the vehicle.
Check your entitlements
When a spouse dies, you may be entitled to financial support from various sources. In Australia, the following are important avenues to explore:
- Life Insurance and Superannuation: Many Australians have life insurance through their superannuation funds or separate life policies. If your spouse held such policies, contact the fund or insurer to find out how to claim. Depending on the policy, life insurance can provide a lump sum payout, which can be invaluable for supporting your ongoing financial needs.
- Unclaimed Money Search: It’s possible your partner may have unclaimed money owed to them, such as forgotten bank accounts, shares, or other assets. You can search for unclaimed money through government websites such as the Australian Securities and Investments Commission (ASIC) unclaimed money register.
Reassess your financial situation
When your spouse passes away, you might find that your financial situation also changes. This could be due to less household income and having to manage bills yourself. It’s important to reassess your budget to help get an understanding of where you stand and whether you need to reprioritise different expenses. A clear and up-to-date budget can help provide peace of mind and give you some financial direction for the immediate future.
Try our Budget Planner to help identify your current expenses and opportunities for saving.
If you’re concerned about your finances moving forward, or your financial situation is a bit more complex, a financial advisor or planner can help offer you expert and tailored advice specific to your situation. To ensure our customers have access to appropriate financial advice we have formed a relationship with Alliance Wealth. You can find out more about the services Alliance Wealth offer and how to get in touch with a financial adviser by visiting our website.
Get the right support
Losing a spouse is an emotionally exhausting experience and while your family and friends will naturally surround you with love and care, you might find you need the extra support of services that are equipped to help people experiencing grief:
- Lifeline
Website: www.lifeline.org.au
Phone: 13 11 14 - Beyond Blue
Website: www.beyondblue.org.au
Phone: 1300 22 46 36 - Grief Australia
Website: www.grief.org.au
Dealing with financial matters during this time might feel overwhelming, but taking things one step at a time and seeking professional advice when needed can help alleviate some of the stress. Consider speaking with a financial advisor, solicitor, or Centrelink representative to ensure you’re handling all financial matters properly and accessing all the support available to you.
Find out more about deceased estates on our website and how we can assist you through this difficult time.
Auswide Bank Ltd ABN 40 087 652 060, AFSL No. 239686. This information provides general advice only. We do not provide advice based on any consideration of your personal objectives, needs or circumstances.
If you require personal financial advice about your situation, we can refer you to Alliance Wealth Pty Ltd AFSL 449221 ABN 93 161 647 007 ('Alliance Wealth') for financial advice. For full details of our relationship with Alliance Wealth, please visit www.auswidebank.com.au/financialadvice
