What is the Goal of Widow Planning?
While no one likes to think about the prospect of losing a beloved spouse, planning for widowhood is an important part of a couple’s financial plan. This type of planning involves ensuring that a new widow (or widower) will not be left without financial support following the death of the higher-earning spouse.
The primary goal of widow planning is to ensure that the surviving spouse is able to support their current lifestyle immediately following the death of the spouse. The funds or assets that are received are generally intended for the widow’s immediate needs and will help in preventing her from any financial hardship during the time of the administration of the deceased spouse’s estate.
What Is Involved in Widow Planning?
Widow planning involves determining the necessary amount and arranging for the dispersal of assets or other funds from a decedent’s estate. These funds are typically available for the period of one year.
The amount of funds that are allowed for the widow are usually based on both the size of the overall estate as well as the established requirements for the standard of living for that surviving spouse, although the amount of the allowance may also be decided by a court of law. If you have a high net worth and leave a large estate upon your death, then the widow’s allowance will likely be larger than if you had only a small amount of assets in the estate.
Widow planning is one part of an overall holistic financial planning approach. With holistic financial planning, all of your objectives – both financial and otherwise – are analyzed and then planned for using strategies and tools that are specific to helping you move closer to your goals.
Contact us to see how we can develop a strategy intended to ensure that your spouse has enough financial resources during this difficult time.