How Advisors Can Help Young Clients Who Lose a Spouse

Maintaining Lifestyle and Budget

Not all financial challenges faced by young widows and widowers are immediate, and many can have long-term lifestyle effects. Clients may face significant changes to their budget and investment strategy. Annual income may be reduced after the death of a spouse, raising important questions:

• Can they maintain the same lifestyle they had when their spouse was alive?
• Can they afford to keep their home?
• Do they have access to the same amount of credit as they did before their spouse passed away?

The loss of a spouse often results in a significant reduction in household income. Helping clients reassess their budget often proves helpful to identify what, if any, lifestyle changes are needed. Not rushing this process and taking some time to grieve and assess their new financial situation can help prevent clients from making rash financial decisions, such as selling or buying a home.

Investment strategies can also be considered more of a long-term financial consideration for widowed clients. Their long-term goals may look a bit different, so take time to revisit their financial plan, or create a new one, and work with them to understand their investment goals to help craft a strategy that makes the most sense for their new situation.

Estate Planning and Education

In many cases, it's essential to inventory assets once clients are emotionally ready. With larger or more complex estates, it can be helpful to meet with all professional advisors to assign tasks and set up a plan for moving forward.

For younger widows and widowers, education may first be needed before diving into the estate planning process. An estate planning attorney may take the lead but will rely heavily on an advisor to provide financial information and assist in dividing assets according to the trust documents. In smaller estates, an advisor may take charge in helping the client inventory assets and obtain date-of-death valuations.

The paperwork involved in retitling assets and accounts can be daunting for the surviving spouse, as most financial institutions require copies of death certificates, estate documents and new account paperwork. Beneficiaries should be reviewed on all accounts, and estate planning documents should be updated for the surviving spouse.

Deactivating or Archiving Digital Accounts

Outside of finances, young widows or widowers face an often-overlooked obstacle: disabling or archiving their late spouse's tech devices and social media accounts. 

In recent years, passwords and social media access have begun to be included in wills. If a client's spouse set up a legacy contact on their phone, it can grant access to accounts and provide a financial road map. If clients haven't done so already, discussing the importance of assigning a legacy contact for digital devices can be a powerful conversation for estate planning.

Minding Emotional Well-Being

Most importantly, when clients seek advice after losing their significant other, it's essential to be sensitive to their emotions and compassionate to their situation. Even if advisors have had a long-term relationship with a client before the loss and resulting life changes, the role may look different now. 

Advisors may find themselves playing the role of a counselor or therapist, helping clients process complex emotions and adjust to their new reality. Some may see their advisor as more of a friend and a shoulder to lean on during this difficult time. The goal should be to help clients feel confident and courageous in making informed decisions about their future. 

Romy Pavolotsky is a senior vice president and investment counselor at Bailard, an independent, values-driven wealth and asset management firm serving individuals, families and institutions.