Coping with the death of a spouse is difficult at best, but unfortunately, many decisions need to be made and actions must be taken in the first few months after the death occurs. This Financial Guide provides information that will help guide you through this difficult time.
A complete list of all of your spouse’s property, including real estate, stocks, bonds, savings accounts, and personal property will be needed. Land titles, stocks certificates, and other financial papers may be stored in a safe deposit box or another secure place.
you are a disabled widow, age 50 or older and you care for dependent children under age 16 or disabled children.
You should also contact all past employers, including federal, state, or local governments, to determine whether you are entitled to any payments from a pension plan.
DISTRIBUTIONS: WHEN To Take Them.
DISTRIBUTIONS: HOW To Take Them.
Assets jointly owned by the deceased and someone else are not subject to probate. Proceeds from a life insurance policy or Individual Retirement Account (IRA) that are paid directly to a beneficiary are also not subject to probate.
Federal Estate Tax. Estate tax is generally only due on estates exceeding the unified credit exemption equivalent, which for 2016 is $5,450,000 ($5,430,000 in 2015). It was $5,340,000 in 2014. In 2013 it was $5,250,000 and in 2012 it was $5,120,000. In 2011, the exemption amount was $5,000,000 and in 2010, there was no exemption amount. Starting with tax year 2013, estates over the threshold amount (e.g. $5,450,000 in 2016) are subject to 40 percent tax.
State Death Taxes. State laws vary, but generally, any estate which pays a federal estate tax must also file a state estate or death tax form and pay the state death tax. This amount is paid by the estate to the state in which the deceased lived.
If you had a joint bank account with your spouse, it will automatically pass to you. Check with the bank about changing the title and signature card on the account. To change stocks or bond titles, check with your stockbroker.