The Death Of A Spouse

Do you know anyone that lost a spouse lately? I am sure that you do and I am sure they are re-working their plans. You should be there to help. Let's look at some of the challenges, opportunities and solutions:
 

• The surviving spouse will now file as a single. Have you looked at how fast you move into the higher tax brackets as a single? No double standard deduction, etc.
• What about the life insurance policies that are in force to be paid to the deceased? What do you do about them?  Do you consider a life settlement? What about giving to the kids so when the survivor passes, the kids or beneficiaries will get a tax-free benefit. It may be hard to find a better return.
• If the survivor has been holding off until age 70 to collect social security… Should he/she start now? What about a Social Security Survivor benefit?

 
Now, let's also take a look at the "tax time bomb.” The survivor has a good net worth and good financial products. The kids will now get all the dough when the survivor passes. When that happens, the kids can say good bye to low tax rates. This windfall will throw them into the higher brackets. What to do?
 
A piece of paper and a drop of ink can transform lives, when the ink is used on a life insurance application. It’s simple: Start moving some of the assets into life insurance, so when death occurs, the money that is passed down is income tax free. That will pay for a lot more grandkids educations or assistance to heirs that have been behind a financial eight ball. But even though that will eliminate some tax rime bombs, let's don't forget about the survivors needs.

The survivors life has changed forever. He/she will now be riding solo into retirement. He/she might not have desire to work as long. He/she might want accelerate retirement income. Should we begin meeting with the survivor again? You bet... because if you don't, someone else will.
 
Here’s the bottom line… get with the survivor ASAP. Don't go in for a sales presentation, but a nice lunch at an appropriate time can ease some strain. Let the person know that you are there to help and there will be changes to his plan that need to be made. And, while you are at it, try to get a meeting with the attorney as documents will need to be re-written or altered.
 
After the dust settles and the casseroles that friends and neighbors fixed are gone, the phone doesn't ring as much. Your client will have to "face the financial music.” Too many in this situation put it off for too long. Ask questions, re-write the plan, and everyone will gain.

More Sales Tips

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Until next time… good selling!
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Raymond J. Ohlson
Founder & Retired CEO
Ohlson Group
​1-877-844-0900