Essential steps to safeguard your finances in the wake of loss.

  • Surviving spouses face financial challenges after a partner’s death, including tax implications and loss of income.
  • Social Security benefits are reduced, and surviving spouses may enter a higher tax bracket.
  • Healthcare costs can increase significantly for single individuals compared to couples.
  • It’s crucial for couples to regularly review financial documents and beneficiaries.
  • Key financial moves should be made within the year following a spouse’s death to protect assets.

Nancy Tengler, CEO of Laffer Tengler Investments, faced unexpected financial turmoil after her husband’s death seven years ago. Despite her expertise in managing finances, she was unprepared for the changes that followed. With her husband battling an illness, they hadn’t organized their assets for tax efficiency, leading to a higher income tax bracket for Tengler as a single filer. nnWhen a spouse passes away, financial concerns often take a backseat. Surviving partners typically lose one Social Security payment and may find themselves in a higher tax bracket. For instance, while married couples can benefit from higher tax brackets, single filers face lower standard deductions and increased tax burdens. nnHealthcare costs can also rise significantly. Medicare premiums are tied to income, and while couples pay a standard premium up to a certain income level, single individuals face a lower threshold. Additionally, the loss of employer-provided health insurance can force surviving spouses to seek alternative coverage. nnTengler, who lost her husband at 59, highlights the importance of reviewing financial plans every few years. After her husband’s death, she realized she missed key financial opportunities, such as completing Roth conversions and selling their home to maximize capital-gains exemptions. nnFinancial advisors recommend that surviving spouses take specific actions within the year following a death. For example, moving stocks with large capital gains into the deceased spouse’s name can help avoid taxes on those gains. Additionally, filing a 706 estate tax return can preserve estate tax exemptions for future heirs. nnIn summary, while the emotional toll of losing a spouse is immense, taking proactive financial steps can help secure a more stable future.·

Factuality Level: 7
Factuality Justification: The article provides relevant information about the financial challenges faced by widows and widowers, including tax implications and financial strategies. However, it includes some anecdotal elements and personal perspectives that may not be universally applicable, which slightly detracts from its objectivity. Overall, it is informative but could benefit from a more neutral tone.·
Noise Level: 8
Noise Justification: The article provides a thoughtful analysis of the financial challenges faced by widows and widowers, offering actionable insights and solutions for managing finances after the death of a spouse. It includes specific examples, data on tax implications, and advice from financial experts, which supports its claims and maintains relevance throughout.·
Public Companies: Laffer Tengler Investments (N/A)
Key People: Nancy Tengler (CEO of Laffer Tengler Investments), Samantha Garcia (Senior Wealth Advisor at Halbert Hargrove), Hollis Hardiman (Certified Divorce Financial Analyst and Partner at Merit Financial Advisors)

Financial Relevance: Yes
Financial Markets Impacted: No
Financial Rating Justification: The article discusses financial topics such as tax brackets, Social Security benefits, Medicare premiums, and capital gains taxes. It also mentions the impact on financial markets or companies, but it is not the main focus of the article. The article provides advice for widows and widowers to manage their finances after the death of a spouse, including tax planning, asset management, and estate planning.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: The article discusses financial challenges faced by widows and widowers after the death of a spouse, but it does not describe an extreme event that occurred in the last 48 hours.·
Move Size: No market move size mentioned.
Sector: Healthcare
Direction: Down
Magnitude: Large
Affected Instruments: Stocks, Bonds

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