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Safeguarding Your Future: How to Prepare Financially for the Death of a Spouse

Admin • March 28, 2024

“In this world, nothing is certain except death and taxes.”

You’ve likely heard this famous quote from Benjamin Franklin, written in a letter to a friend as he neared the end of his life. Death is indeed a certainty for each of us, and this knowledge can make it easier to prepare for the end of life, including having a financial plan in place to protect and preserve your wealth for your loved ones.

While you may have contemplated getting your affairs in order before your own passing, what about those of your spouse? If you’re the surviving partner, the financial burdens placed on you can be significant. 

With the passing of a loved one, it can feel impossible to make important decisions, especially those concerning money. It’s important to understand the costs that you may shoulder with the loss of your spouse, as well as how to prepare financially, so you’re not left to deal with it during a time of grief.

Completing a financial planning checklist for death is likely not the most lighthearted task you’ll complete, but it’s something you’ll be thankful you sorted out ahead of time. 

Understand The Costs of Your Spouse’s Passing 

When your spouse passes away, there will be the expected final arrangements that need to be made, which can include a funeral and burial. 

According to the National Funeral Directors Association, the median price for a traditional funeral and burial in 2023 was $9,995 . However, this is only an average cost and may not include additional expenses such as a burial plot or transportation of the body, if your spouse wishes to be buried in a different state than where you reside. 

You and your spouse should know each other’s wishes concerning final arrangements. Consider exploring all the options that are currently available together: You or your spouse may want to consider alternative arrangements, such as a green funeral, cremation, or a celebration of life instead of a traditional funeral. 

Know the Process of Settling an Estate

Settling your spouse’s estate can take money and time; estate planning is essential to ensure this process goes smoothly and that your spouse’s legacy is protected.

All property that is jointly held with rights of survivorship should immediately pass to the surviving spouse without probate. Any assets that are held in a trust or have a payable-on-death beneficiary should also circumvent the need for probate. However, there may be other assets that necessitate probate and its associated costs, legal fees, and/or executor fees. 

After your spouse passes, the estate must settle their outstanding debts and obligations. These debts are typically paid out of the money or property left in the estate. As the surviving spouse, you’re usually not responsible for these debts unless you share legal liability for them, such as if it was a joint account or you were a co-signer.

Be Prepared with an Estate Plan 

Having an estate plan in place for you and your spouse long before you need it will spare each of you from the burden of arranging financial affairs after death. As part of a comprehensive estate plan, there are several legal documents to prepare:

  • Will
  • Trusts
  • Power of attorney
  • Medical directives
  • Life insurance policies (each spouse should know coverage, benefits, and issuer information)
  • Usernames and passwords to all financial accounts
  • Pension information (including survivorship benefits and related information)

Look over these documents regularly to ensure they contain up-to-date information. Keep them in a secure place in your home — not in a lock box or safety deposit box, as your loved ones may not have immediate access when they’re making final arrangements. Make sure your spouse, as well as at least one other trusted individual, knows the location of your documents. 

Review Long-Term Care Options

It’s important to also consider your options if your spouse needs extended medical care before their passing. The cost of care can quickly add up, and preparing for this uncertainty can help insulate your finances from major medical expenses.

Long-term care insurance policies can help protect your wealth from the impact of prolonged medical care. You’ll need to decide whether hiring a skilled in-home nurse or getting help from family members will be a better option for care. It can be a difficult discussion, but it’s important to review with your spouse how to plan for extended healthcare costs well before you’re faced with them. 

Assess Insurance Needs

If you obtain health insurance through your spouse’s employer, things can get complicated — and potentially costly — if they pass away. 

While your spouse’s death will trigger your eligibility for COBRA, these premiums can be expensive, and eligibility only extends for 36 months. When investigating new options, weigh your personal health needs with cost-saving options such as a high-deductible plan with an HSA. 

In addition to your health insurance, you may want to re-evaluate your life insurance arrangements with your spouse’s passing. If your children are already grown and no longer dependent on your support, you may not need as much life insurance. You may also need to take out your own policy if you held a life insurance policy with your spouse’s employer.

Recognize Other Potential Expenses

Beyond the direct costs associated with your loved one’s passing, there can be additional, less evident expenses that you may potentially face: 

  • You may want or need to take an extended leave of absence to grieve your spouse or give yourself time to be with family. This could impact your income and retirement savings if you’re still working.
  • You may want to see a therapist or grief counselor to help you process the death of your spouse. This can be an extended expense if not fully covered by insurance.
  • If your spouse was the one who managed the housework, yard work, or finances, it may be necessary to outsource these services to professionals if you don’t have the bandwidth to deal with them yourself.
  • If you decide to downsize and sell your home or move in with a family member, you may need to pay a real estate agent to sell your property, as well as other fees associated with the sale and moving expenses. 

You likely won’t anticipate all the indirect costs of a spouse’s death, but acknowledging that there can be additional expenses will help you be better prepared.

Consider Help in Your Estate and Financial Planning for Death

Preparing and financial planning for the death of a spouse can make all the difference when that difficult time comes. Because death evokes such strong emotions, even when it’s a long way off, it may be helpful to involve a financial professional to guide your preparations. 

A professional can work with you every step of the way in your estate planning and make the process less daunting. The knowledge and expertise of a financial advisor can help you navigate the complexities of estate planning, and ensure you have a financial plan in place that takes into account the present and future needs of you and your spouse.

At Five Pine Wealth Management , we have the experience to guide you through the process of estate planning and protecting the legacy you built with your spouse. As fee-only fiduciary financial advisors , we work only in your best interest to help you make the right financial decisions for yourself and your family. 

To see if we can help, call us at 877-333-1015, email us, or fill out our contact form to schedule a time to chat.

The Millennial Advantage: How to Use Your Generation’s Strengths to Build Wealth

March 28, 2025
Despite always hearing about the aging of America and the baby boomer generation, did you know the millennial generation is actually the largest age group in the country? Born between 1981 and 1996, millennials outnumber baby boomers post-WW2, with about 72.2 million millennials in the United States, as of 2023. The media often highlights millennials' financial challenges: mountainous student loan debt, a competitive job market, unaffordable housing, and credit card debt. There’s no doubt it’s been more challenging for millennials to save and gain a stable financial foothold compared to previous generations. Yet despite these hurdles, millennials have financial opportunities available to them that previous generations did not. Millennials came of age with the rise of the internet and advances in technology; they’re digital natives, incredibly tech-savvy, and well-positioned to master the digital era they live in. Millennials’ unique position in history gives them advantages when it comes to investing, starting a business, and increasing their financial literacy. Millennials and Investing Millennials are changing the game when it comes to investing—innovative financial platforms and investment products have helped to evolve the investment landscape, and have made investing more accessible than ever before. As a millennial, embracing this innovation can help move you closer to achieving your goals and building a financially secure future. Impact Investing Millennials are known for being socially conscious with their spending and supporting brands and companies that align with their values. This desire to make a difference often extends into their investments—intentionally choosing to invest in companies that reflect their values and promote the causes they support. Through impact investing, you can support positive global change while also working toward your financial goals. Impact investing can be done through investing in Environmental, Social, and Governance (ESG) investment funds, or through pursuing a strategy of Socially Responsible Investing (SRI). ESG funds focus on businesses that have strong environmental policies, social impact initiatives, and good governance. These funds have become increasingly popular with investors, like millennials, who want to support companies that prioritize sustainability and ethical practices. SRI focuses on investing in companies that promote environmental sustainability, social justice, and corporate ethics. SRI can also exclude investing in companies that engage in activities that are considered negative or harmful—tobacco, alcohol, fossil fuels, firearms, or the defense industry. Cryptocurrencies and Decentralized Finance Cryptocurrencies are newer investment frontiers that techie millennials can be more comfortable exploring than older generations. Crypto such as Bitcoin and Ethereum are digital currencies that operate on blockchain technology , which provides increased transparency and security. Crypto investments can be risky, but can also offer high rewards. Decentralized Finance (DeFi) platforms also leverage the security and transparency of blockchain technology to offer decentralized financial services and transactions. DeFi platforms provide opportunities for lending and investing without traditional intermediaries like banks and other centralized institutions. For millennials, DeFi represents a cutting-edge way to engage with financial services and they can offer more control and potentially higher returns than traditional methods. The Power of Time One of the biggest advantages millennials have when it comes to investing is time. If you start investing early, you can benefit from compound interest and long-term investments, which can significantly boost your returns and help increase your wealth. Compound interest is the process where the interest you earn on an investment is reinvested, which generates more interest. The longer your money is invested, the more it can grow. Even small, consistent contributions to your investment portfolio can accumulate substantial wealth over time. Having a long-term investment horizon allows you to ride out market volatility, and capitalize on growth over time. By not reacting to short-term market fluctuations, you can achieve more stable returns. Long-term investing is a powerful tool that can help you build a secure financial future. Millennial Entrepreneurship This generation’s core characteristics set them apart as innovators and business creators. As digital natives, millennials have a strong grasp of technology which allows them to leverage digital tools such as social media marketing, e-commerce tools, and data analytic platforms to grow their businesses exponentially. You’ve likely seen peers thrive in their ventures through their use of social media, which has become a critical tool for marketing, brand building, and customer engagement. Community-building is also highly valued among this generation—the use of LinkedIn alone helps entrepreneurs connect with fellow collaborators, business owners, and mentors. Similar to aligning your investments with your values, you can easily integrate your ethical beliefs into your business ventures. Ethical business practices such as developing eco-friendly products, creating an inclusive workplace culture, and advocating for fair trade processes can make a positive impact and build loyal customer bases. Millennials and Financial Literacy The millennial generation has more resources than ever to increase their financial literacy. Free online finance courses are easy to access, readily available, and enable you to educate yourself so that you can make smart financial decisions to help you achieve your goals. Personal finance apps like Mint and YNAB (You Need a Budget) can also increase your financial literacy by helping you understand and manage your finances more effectively. They offer features like budget tracking, expense management, and financial goal setting to help you be in full control of your finances. Finance apps make it easier for you to stay on top of your financial health and make informed decisions in managing your money. Work with Us to Reach Your Goals  Ever-evolving technology has transformed the financial landscape significantly over the last few decades and millennials are more prepared to take advantage of that transformation than any generation before them. While you can take charge of your finances on your own, working with a financial advisor can help you find your path and stay the course of your journey toward financial security. Financial advisors can provide advice that is tailored to your individual circumstances, to better meet your unique needs and objectives. At Five Pine Wealth Management , we’re committed to helping you create a customized financial plan and investment strategy to help you reach your current and future goals. As fiduciary financial advisors, we always act in your best interest in every step we take with you on your financial journey. We also offer virtual financial planning for millennials looking to fit financial planning into their own schedules. To see if we can help you, email us or give us a call at 877.333.1015 today to schedule a meeting.

Just Got a Raise? Implement These 5 New Strategic Wealth Opportunities

March 21, 2025
Getting a raise is an exciting moment in your career and financial journey. Maybe you’ve gone through an executive-level position change and received a 10% pay bump or an internal promotion yielded you an additional 15%. Regardless of how you got your raise, you’re now in a unique position to move the needle on your long-term financial goals (and maybe splurge a little, too). But before you pull the trigger on that major purchase you’ve been eyeing, it’s important to have a long-term plan for the extra money in your paychecks. Even a significant raise can erode quickly if you suddenly upgrade your home, start vacationing like a celebrity, or snap up that Mercedes you’ve been eyeing. Below are our top five strategic wealth opportunities for you to consider the next time you receive a raise. First Things First: Understand Your New Numbers A 10% or 20% raise may sound like a huge boost, but not all that money will land in your bank account. Before making any financial moves, it’s important to calculate your new take-home increase after taxes and contributions. For example, if you receive a $25,000 raise on a $175,000 salary, you might expect $2,083 more per month. However, after accounting for federal taxes, state taxes, and other deductions, your actual monthly increase might be closer to $1,500. Knowing your actual take-home pay helps you set realistic expectations and make informed financial decisions. Getting a Raise: 5 New Strategic Wealth Opportunities For high-income earners, getting a raise isn’t just more spending power—it’s an opportunity to build lasting wealth while minimizing taxes. Instead of falling into lifestyle creep, consider these five wealth-building strategies to maximize your higher income. 1. Grow: Maximize Tax-Efficient Investment Opportunities With your increased income, you now have more opportunities to maximize tax-advantaged accounts and investment vehicles. For 2025, you can contribute up to $23,500 to your 401(k), plus an additional $7,500 if you're 50 or older. If you weren't maxing out your contributions before, your raise provides an excellent opportunity to reach these limits. Let's say you direct $750 of your new monthly take-home pay to your 401(k). You not only build retirement savings but could save approximately $2,160 in federal taxes annually if you're in the 24% tax bracket. Consider increasing your retirement and investment contributions by the same percentage as your raise. For example, if you receive a 10% raise, aim to increase your contributions by 10% of that raise. This incremental adjustment will help ensure you can maintain the lifestyle you're accustomed to when you retire. 2. Save: Optimize Tax Strategies to Reduce Liabilities A higher income often means entering new tax brackets, making tax efficiency more crucial than ever. Without proper planning, you might find a significant portion of your raise going to Uncle Sam instead of building wealth. Consider switching to a high-deductible health plan (HDHP) for your family, which can lower your premiums while giving you access to a Health Savings Account (HSA). In 2025, you can contribute up to $8,550 for family coverage , potentially saving around $2,000 annually in taxes. Additionally, the money in your HSA grows tax-free and can be withdrawn for qualified medical expenses without tax liability. 3. Diversify: Explore Alternative Investments A higher income can open the door to new investment opportunities, allowing you to diversify beyond traditional stocks and bonds. Alternative investments like real estate investment trusts (REITs) can provide exposure to different asset classes, potentially offering both passive income and long-term appreciation. These types of investments often move independently of the stock market, helping to balance overall portfolio risk. They can also offer lower barriers to entry compared to direct property ownership or other traditional alternatives. The key is to align your investments with your risk tolerance and liquidity needs while taking advantage of opportunities that complement your existing strategy. 4. Strengthen: Build Your Estate With more income comes greater potential for building generational wealth. Investing half of your $25,000 raise annually for 20 years with a 7% return could add over $500,000 to your estate. This makes it essential to have proper structures in place for efficient wealth transfer. To ensure your wealth transfers efficiently, consider: Trusts to protect assets and minimize estate taxes Life insurance strategies for wealth preservation Family-limited partnerships for multi-generational wealth planning These structures become increasingly valuable as your wealth grows. 5. Impact: Upgrade Your Philanthropy & Social Impact There's something powerful about reaching a place in life where you can give back meaningfully. Beyond the personal satisfaction of a higher income, this new chapter brings an opportunity to create lasting positive change in your community and the causes closest to your heart. Maybe you still remember the community college professor who believed in you when you weren't sure about your path. Now, twenty years later, by creating a donor-advised fund (DAF) to support student scholarships, you're not just making education more accessible—you're giving another student their own life-changing mentor. By thoughtfully structuring your charitable giving through vehicles like DAFs or qualified charitable distributions from retirement accounts, you can maximize both the impact of your generosity and the tax benefits that come with it. After all, effective philanthropy isn't just about giving money away—it's about creating meaningful change in the ways that matter most to you. Red Flags: Top Signs of Lifestyle Creep While getting a $25,000 raise provides excellent opportunities for wealth building, it's important to avoid (too much) lifestyle creep. That upgraded car lease might cost an extra $200 monthly, the bigger house another $800 in mortgage payments, and the premium credit card's annual vacation package another $400 monthly in travel costs. Before you know it, your entire raise can get absorbed by new expenses. While there's nothing wrong with enjoying the fruits of your hard work, the key is being intentional about which lifestyle upgrades truly matter to you. Here are some common warning signs that lifestyle creep might be eroding your raise: Your monthly expenses rise automatically with your income You upgrade multiple lifestyle aspects at once (housing, car, travel, dining) Your savings rate remains unchanged despite higher earnings Luxury spending becomes your new normal Your cash reserves aren’t growing despite a higher paycheck Instead of automatically increasing spending across the board, take time to identify the one or two changes that would bring the most joy and fulfillment to your life. Then, invest the rest. Put Your New Money to Work with Five Pine Wealth While these strategies focus on wealth building, don't forget to invest in yourself through continued education, health, and meaningful experiences. The key is finding the right balance between growing your wealth and enjoying the fruits of your success. Whether you've recently received a raise or are anticipating one soon, having a plan in place can help you maximize this opportunity. Our team can help you evaluate which of these strategies would work best for your unique situation and create a customized plan to help you reach your financial goals. At Five Pine Wealth Management , we can help you implement these strategies in a way that aligns with your personal goals and values. To learn more about making the most of your increased income, schedule a meeting with us. Email us at info@fivepinewealth.com or call us at 877.333.1015.  Let's work together to transform your raise into lasting wealth.
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