Navigating the Financial Landscape After Loss: Expert Guidance from Newcastle Advisors to Ease the Burden of Bereavement
Navigating the Financial Landscape After Loss:
Expert Guidance from Newcastle Advisors to Ease the Burden of Bereavement
The loss of a partner or loved one is one of the most challenging experiences that anyone can face, marked by profound grief and emotional distress.
When faced with such a loss, especially if your partner was the chief financial officer of your household, managing practical matters like finances can seem daunting.
However, as you navigate through the period of mourning, it becomes crucial to start considering the financial implications of your loss.
Well-meaning family and friends can often offer conflicting advice or advice that isn’t financially appropriate.
Which may involve a family member or friend establishing a go-fund-me page, which is a lovely thought, and makes the organiser feel like they are doing something or helping. However, Newcastle Advisors clients have explained this process, (with the current cost of living) as literally a “short-term sugar hit” to the family household that comes with a lot of unwanted attention.
During this time, you may want an objective professional who will listen to your concerns, help to focus attention on those decisions that need to be made sooner than others and then over time help you obtain a holistic view of your financial picture while offering advice on a range of topics that will impact your life for the years to come.
One of the most beneficial roles of working with financial planners is to offer guidance in the midst of a life-changing event. Working with Newcastle Advisors can bring calm in the midst of a chaotic time and provide a path to make sound financial decisions that can ultimately help you regain your sense of financial independence / control and enable a good quality of life.
At Newcastle Advisors, we understand the delicate balance between taking the time to grieve and beginning to think about financial responsibilities. We are here to support you through this journey with empathy and understanding.
Understanding Your New Financial Landscape:
With the passing of your partner, you will find yourself solely in charge of many issues that might have been unfamiliar territory before. Suddenly, you’re faced with overwhelming responsibilities such as paying bills, managing mortgages, and understanding investments, leaving you feeling lost and uncertain.
However, not all these things need to be done right away it can be difficult to know when you need to be doing what. A financial advisor can help you take the small steps needed, putting together a timeline to help you determine what needs to be tackled right away and what can wait for a later date.
We’re here to help you find your footing in this new landscape.
The Immediate Steps:
Arranging the Funeral: Begin by checking if your partner had left any instructions or preferences for their funeral as part of their will. This could include burial or cremation preferences and the type of service they desired.
Obtain a Death Certificate: This essential document, typically arranged by the funeral director, is vital for managing your partner’s finances, including transferring, or cancelling services.
Claiming Life Cover: Life insurance pays a lump sum to beneficiaries upon the policyholder's death. Whether the policy was through an insurer, broker, financial adviser, superannuation fund, or an employer, it’s important to initiate the claim process. Keep the policy number handy, and don’t hesitate to lean on a trusted friend or family member for support during this time. This is part of a financial planners role. They have the expertise and experience to deal with super funds and insurance providers to support in managing the claim process, which can become a nightmare at times.
Assessing Entitlements: Visit moneysmart.gov.au and use their ‘Unclaimed Money Search’ to explore money your partner may have been entitled to, such as shares, super, or life insurance.
Transfer or Cancel Services: Simplify the process of notifying different agencies by using the Australian Death Notification Service (link). This service allows you to efficiently transfer or cancel services like utilities, bank accounts and memberships.
Creating a New Financial Plan:
Budgeting:
Adapting to a changed household income requires a new budgeting approach. Utilise tools like the ‘Budget Planner’ on moneysmart.gov.au to outline your monthly expenses and establish a sustainable spending plan. This will be your foundation for making informed financial decisions and ensuring a stable future.
Avoid Rushed Decisions:
It’s advisable to steer clear of making any large financial decisions hastily. Taking time to understand your new situation will lead to more sound choices in the long run.
Transition Management
Transitioning from a lifestyle where you have someone to depend on to help you emotionally, mentally, and financially to a life where you’re dependent on yourself can be difficult. This is especially true if your partner was the one who handled the management of household finances. If you personally took a backseat approach to finances and are now unsure about what to do moving forward, a financial advisor can provide the guidance and direction that you need to go from the backseat to the driver’s seat.
From money basics like setting a budget to the more complex financial matters like relocating, understanding taxes, managing an investment portfolio, funding your children’s education etc. having an advisor you trust to help you learn the ropes can do wonders for mitigating the stress that comes with managing this type of transition.
Set Clear Goals:
What are your aspirations for the future? Whether it's ensuring financial security, planning for your children's education, or achieving personal milestones, setting clear, achievable goals can guide your financial planning and provide a sense of direction during uncertain times.
Assistance with Paperwork
One of the more overwhelming tasks you’ll have to deal with after the loss of a spouse is the paperwork that follows. You’ll need to address retirement and life insurance benefits, reworking your estate plans, insurance claims, superannuation claims, tax filing, the retitling of assets, and more. Financial paperwork can be complex on its own, but it’s especially daunting after the loss of a loved one. Having a financial advisor at your side can help make sure you’re completing all the paperwork necessary in a timely manner which in turn can help relieve some of that stress that you may be experiencing.
Knowing the process
An advisor can help you through the process of dealing with retirement accounts, superannuation companies, and insurance companies, as this can be confusing when it comes to rolling accounts over to the beneficiary due to the complex tax and transfer rules. Advisors have experience in what to look for and can facilitate the process more quickly, avoiding issues you may not have expected.
Advisors can act as a liaison between family members. They can explain the process and expectations with respect to time and requirements by super/ insurance accounts. The advisor can be a neutral third party that can discuss the best course of action.
Knowing the professionals
The financial advisor may have relationships with accountants, estate lawyers, insurance providers, and super funds to support in relieving unnecessary stress from the process. Financial advisors can also work as a team with other professionals to brainstorm the most efficient plan for taxes and future estate planning. The advisor can coordinate the process and plan, dealing with the other professionals to ensure everyone is on the same page, working for you and your objectives.
Conclusion:
At Newcastle Advisors, we’re committed to helping you navigate these challenging times with compassion and expertise. We understand the intricacies of managing financial responsibilities after the loss of a partner and are here to offer guidance, support, and peace of mind. Remember, taking one step at a time is key to regaining your financial footing while taking care of your emotional well-being.
Crisis Support and Counselling:
Dealing with the loss of a partner is an emotionally taxing experience, and it’s important to know that you’re not alone. For immediate support, consider reaching out to:
Lifeline (13 11 14) - Available 24 hours for crisis support and online chat.
Australian Centre for Grief and Bereavement (1800 642 066) - Offers counselling and support programs during business hours.
Beyond Blue (1300 22 46 36) - Provides 24-hour support for depression, anxiety, and grief, including a web chat service from 3 pm to midnight.