Losing a Spouse: Your First Money Questions, Answered

What are the first steps?

Five calls cover most of the first month:

1. Order certified death certificates from the funeral home.
2. Call Social Security at 1-800-772-1213 about survivor benefits and the $255 payment.
3. Call his employer's HR about life insurance, a pension, and his 401(k).
4. List every account and who is named on it.
5. Keep paying home, auto, and health insurance so nothing lapses.

What should I do with money in the first 30 days?

Keep it simple: pay the bills that matter, and don't sign anything permanent. Order more certified death certificates than you think you need. Banks, insurers, and retirement plans each want one.

Keep one notebook for every call: the date, the person's name, and what they said. Grief makes everything feel urgent. Very few money decisions truly are.

How much are Social Security survivor benefits?

As of 2026, a widow can get 100% of her husband's benefit at her full retirement age for survivors, or about 71.5% if she starts at 60. With a disability, you can start at 50. Caring for his child under 16? You may qualify at any age.

If you lived together, there is also a one-time $255 death payment (SSA, as of 2026). Apply within two years. Social Security doesn't start survivor benefits on its own. You have to apply.

Do I owe tax on what I inherit from my husband?

Usually not. Under IRS rules as of 2026, money and property you inherit aren't income to you. Illinois has no inheritance tax. Its estate tax applies only when an estate is over $4 million (as of 2026).

The federal estate tax starts above $15,000,000 per person in 2026. Most families owe neither. Withdrawals from his pre-tax IRA or 401(k) are different. Those are taxed as income when you take the money out.

Should my husband's estate file for portability even if no estate tax is due?

Often, yes. Filing a federal estate tax return (Form 706) can carry his unused exemption over to you. That's called portability. In 2026, each person's exemption is $15,000,000.

Many families skip this form because no tax is due. Later, if your assets grow or the law changes, that unused amount can matter. The IRS gives many estates up to five years to make this election under a simplified method. Ask your estate attorney and CPA.

What happens to my tax filing status?

For the year he died, you can usually still file a joint return. After that, if a dependent child lives with you, you may file as a qualifying surviving spouse for two more years, using the joint tax brackets.

Without a dependent child, you'll file as single starting the next year. Your tax bracket can go up even if your income goes down. Plan for that now, not in April.

Should I sell the house?

Not right away. Wait until you can decide with a clear head. If you sell within two years of his death and haven't remarried, you may still exclude up to $500,000 of gain instead of $250,000 (IRS rules as of 2026), if the other tests are met.

His share of a jointly owned home generally gets a new cost basis at his date of death. That can shrink the tax even more. Before you decide, add up the real monthly cost: mortgage, property taxes, insurance, and upkeep.

What do I do with his IRA or 401(k)?

As a surviving spouse, you have choices other heirs don't. You can roll it into your own IRA or keep it as an inherited IRA in your name.

If you're under 59½ and may need the money, an inherited IRA lets you take withdrawals without the 10% early-withdrawal penalty (IRS rules as of 2026). If you don't need it soon, rolling it into your own IRA can delay required withdrawals. Ask for a direct trustee-to-trustee transfer, and name your own beneficiaries the same day.

Which accounts need new names or beneficiaries?

All of them. List every bank and brokerage account, life insurance policy, annuity, pension, car title, and the deed. Then change the owner names and update every beneficiary form. Beneficiary forms beat your will.

If you have a revocable living trust, retitle what belongs in it. Bank deposits are FDIC-insured up to $250,000 per depositor, per bank, per ownership category (as of 2026), so a large life insurance check may need more than one account.

How do I know if I'm being rushed?

If anyone pushes you to buy, sell, or sign in the first weeks, slow down. A good professional will wait. Life insurance money can sit in a safe, insured account while you think. Taking time rarely costs much. Moving too fast can cost a lot.

Education, not advice. Every family is different. Talk with your own tax, legal, and financial professionals before you act. Figures are 2026 amounts from the official sources below and can change.