. What Am I Going to Do? 

The death of a spouse is one of life's greatest stressors. Not only do you have to deal with the physical and emotional void, you must also deal with the details of winding up an estate.   

In the midst of sudden grief, the banality of searching for the information needed to close the deceased's estate may be an intrusive and even offensive process. On the other hand, making the necessary phone calls may start you on your path through the stages of grief.

However the process of winding up the estate affects you, you will need to reach out for information and should call: 

Your Accountant 

Your accountant may have information concerning investments, RRSPs, and insurance that may lead you to others you must call. You will also need your accountant's advice concerning the tax consequences of your spouse's death: the effect on the deceased's final return, and the potential impact on your own taxable liabilities. It is always advisable to discuss how the liquidation of assets, investments or government-sponsored savings vehicles, such as RRSPs or RESPs, and HBPs will impact the deceased's estate and perhaps even your own income taxes. 

Your Lawyer 

Your lawyer will probably have the original copy of the will and may even have been named executor. Your lawyer can also provide insight into your responsibility for paying any outstanding debts incurred by the deceased. The will can be expected to provide details as to where assets, insurance policies or investments are held and name contacts. 

The Funeral Home 

Funeral arrangements can be expensive. Make sure you know the funeral costs in detail. The funeral director may allow you to defer payment until funds are available through the executor or the estate. Ask the funeral home for copies of at least twelve certificates of death since banks, insurance companies and government agencies will require proof of death.  

The Bank 

Notifying the bank of the death will freeze all accounts and access to any safety deposit box that might hold jewelry or evidence of investments. This action by the bank ensures the estate is intact for the executor and eliminates the possibility of unscrupulous individuals withdrawing funds or valuables. 

The Financial Advisor  

The company handling the deceased's investments must be contacted. The advisor will be able to provide the portfolio, its market value at the date of death, the adjusted cost base and whether the assets are held solely or jointly. This information will enable your tax advisor to calculate the deceased's tax liability, if any, for submission of the final return. This information is also necessary for determining any effect on the survivor's tax position. 

The Deceased's Employer 

If the deceased was employed at the time of death, the employer will have to be notified. There may be accrued remuneration and vacation pay owing. For many, there may be insurance policies, pension plans, death benefits, that is, payments for built-up sick-leave credits owing, if the deceased had not yet retired, and payments acknowledging the deceased's service. You will also want to determine whether medical, drug and dental insurance continue for the immediate family. If the deceased had been a union member, the survivors might be entitled to union benefits. 

Human Resources and Social Development Canada 

The survivor should contact HRSDC as soon as possible after the loved one's death to claim the one-time lump sum death benefit of $2,500 as well as the survivor's pension and children's benefits. The survivor's pension is based on the deceased's contribution to the CPP. The monthly children's benefit for all children under the age of 18 continues while the children attend school full time. 

A low-income survivor between 60 and 64 may apply for an allowance based on the previous year's income. Payments traditionally start six-to-12 weeks from the date of application. Early application is suggested as there may be difficulties receiving back payments exceeding 12 months. At age 65 the allowance changes to the Old Age Security pension. Once the survivor is receiving the OAS pension, application may be made for the Guaranteed Income Supplement.  

Seek Objective Advice from Your Accountant 

Emotional support and practical advice are much needed when a loved one dies. The emotional support can be garnered from family members or close friends, but it is best to speak with an independent and unbiased outsider such as your accountant for objective advice.  

Your accountant can provide an informed opinion of the assets available and their liquidity, as well as the amount of income that you and your family will need to pay the continuing expenses. This information will enable you to judge which assets may have to be liquidated, the tax impact of any sale, or whether it would be better just to use short-term borrowing to bridge any period of low income. 

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