Financially Coping with the Death of Your Breadwinner

The sudden loss of the breadwinner can be traumatic for you and your entire family. Coping emotionally and mentally is difficult enough already, and you are suddenly confronted with your family’s primary source of income, as well. To cope financially, here are some steps you can take.

File a wrongful death claim if they died due to negligence

The death of a loved one is hard to take. But if the family breadwinner died as a result of another party’s negligence, your pain can be a lot worse.

In such cases, there is a potential solution to alleviate your financial difficulties. Find a trustworthy wrongful death lawyer to help you seek financial compensation for the death of your breadwinner. You can be awarded wrongful death compensation to replace some or all of the financial and emotional support your family would have received from a breadwinner.

It can also cover the medical bills related to their death, and for the funeral and burial costs. As a family member, you can seek compensation for loss of household services, loss of guidance and training, and loss of consortium and companionship.

Take note that a wrongful death claim is not a criminal suit that seeks to punish the negligent party. It is a civil suit that asks for financial compensation.

Execute the will

Last will and testament paper

If the deceased left a last will or testament behind, ensure that the estate is smoothly distributed among the family. You need to tell the Will’s executor to proceed, formally transfer any investments and relevant assets to your name, and have the banks retrieve cash from the accounts of the deceased.

If there is no will, someone has to apply to be the administrator of the estate. The administrator will have legal obligations to distribute your loved one’s assets in accordance to the intestate heir laws. Discuss with all family members who should assume the responsibility and talk to your lawyer to initiate the process.

Claim insurance policies

Go through all the insurance policies of the deceased breadwinner and confirm if payments were made in the event of death, and who the beneficiaries are. Then, make a claim to all of their insurance providers.

Check for loans

The deceased must have left behind outstanding loans or debts. Go through their files, and if you spot something which seems yet to be settled, contact the lender immediately to see what has to be done.

To be safe, you can also contact their lenders directly, and ask if the deceased has any outstanding loans or debts.

Adjust the family budget

Computing finances with a calculator

You need to review your family’s current lifestyle and financial goals. Prepare to lower some of your usual expectations to adapt to financial changes, especially if the deceased left loans and debts behind. You can also tap on your emergency savings to get you through this difficult period.

When the breadwinner dies, your family will never be the same. Some of these changes are out of your hands, but you also need to enforce some changes yourself, especially regarding your finances. Healing after your loved one’s death is a team effort for the entire family. Whether it is mental, emotional, or financial healing, you and your family must support each other to get through.

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