This content is for information purposes only. It should not be taken as financial or investment advice. To receive personalised, regulated financial advice regarding your affairs please consult your Financial Planner here at Vesta Wealth in Cumbria, Teesside and across the North of England.
Losing a spouse is one of life’s most stressful events (the other two are divorce and moving home). When you are grieving, it is difficult to focus on practical matters like finances. Yet, for widows especially, this is a crucial time to get your financial plan in order.
This might be your first time managing the household finances alone. Many widows suddenly find themselves dealing with pensions, investments and insurance policies for the first time (with these previously dealt with by their deceased partner/spouse).
Below, our North East financial planners offer four tips for widows as they navigate this difficult time. You are not alone, and if you want to speak to one of our specialists here in the North East, please get in touch for a free, no-obligation consultation.
Review your new financial position
In the first months of bereavement, it is usually best to avoid rushing into big financial decisions. With emotions running high and raw, you may need time for things to settle so you can see things more objectively.
Take some time to understand your new financial position. There may be a lot to get your head around, such as income changes, liabilities, property ownership and access to accounts.
It is not uncommon for a deceased partner to have held assets in their sole name. As such, you may need a grant of probate (or confirmation in Scotland) to access them. Continued use may be possible with some joint accounts; however, please confirm with the provider.
Financial support may be available to you. For instance, the UK government’s Bereavement Support Payment can offer a lump sum of up to £3,500, with monthly payments of up to £350 thereafter. However, you will need to check your eligibility.
All relevant institutions should be informed of the death. The important one to note is the Tell Us Once service (offered via GOV.UK), which offers a simple way of notifying most UK government departments simultaneously.
Another good step is to take a clear financial inventory that covers savings, pensions, investments, debts and income sources. This will lay the foundation for the following three steps, below. A financial adviser can help you compile your inventory if needed, ensuring no important detail is overlooked.
2. Make updates to your legal and financial documents
With such a drastic life change, your financial documents need to reflect your new personal circumstances. Some key areas to review include your will, power of attorney and any trust arrangements.
For example, if you held a will jointly with your late spouse (or they handled all of the estate planning), this is the time to create new documents. Be aware that, without a will in place, your estate will be subject to the UK’s intestacy laws which may not distribute your assets how you want them, or in the most efficient manner, upon your own death.
If the existing will, pension pots or life insurance policies name any beneficiaries, make sure the nominations reflect your most up-to-date wishes. Otherwise, these could be paid to someone unintended.
Check the ownership structure of any joint ownership of property. For instance, if you were both listed as “Joint tenants”, then full ownership should automatically pass to you (the surviving partner). However, “Tenants in common” requires a more involved legal process.
This might also be the point to consider appointing a lasting power of attorney (LPA). This grants legal powers to a trusted person to make decisions for you should you lose mental capacity. LPA is often overlooked until it’s too late.
3. Take a new look at your long-term financial plan
At this stage, your immediate financial picture should hopefully be clearer. Now it’s time to look at the long term – e.g. your needs, goals and risk profile are likely to have changed.
In particular, you may now have a different retirement timeline, updated living expenses or a lower household income. For instance, if your late spouse had a defined benefit pension, you may be eligible for a widow’s pension – but the rate may be lower.
Check any investments and make sure the current strategy still aligns with your needs and investor profile. Depending on your new circumstances, it may be appropriate to reduce risk or rebalance the portfolio to generate more reliable income.
It is especially important to engage in cashflow planning at this stage. This involves forecasting your future income and expenditure, giving greater visibility and confidence in your financial sustainability.
These are areas where a financial adviser can really help with guiding you through the complexities. Together, you can build a strategy that supports your lifestyle, honours your partner’s legacy, and gives peace of mind.
4. Consider your new tax and IHT circumstances
Bereavement can update a widow’s tax situation, and not necessarily in an unfavourable way. For example, married couples and civil partners can transfer any unused portion of their deceased partner’s nil rate band (£325,000 in 2025-26) for inheritance tax (IHT) purposes. This can effectively double your IHT threshold.
However, widowhood can add complexity to your tax plan – especially if your own estate is now larger. You may want to seek advice about making use of lifetime gifting allowances, pension structures and trusts to help reduce IHT exposure.
Each situation is unique. Before making any big moves, it is wise to consult a financial planner who can model potential outcomes and ensure your strategy aligns with current legislation.
Final Thoughts
Widowhood is a profound life transition. Whilst financial planning cannot remove the pain of your loss, it can really help reduce stress and increase your financial resilience.
If you’d like to speak with someone about your financial situation, our team here at Vesta Wealth offers a free, no-obligation consultation. We’re here to help you navigate this chapter with clarity and care.
Your capital is at risk. Investments can go down as well as up. Past performance is not indicative of future results. Tax treatment depends on individual circumstances and may change. Content is for information only and not investment advice. Any decision to invest is the reader’s own. Diversification is key to managing risk. Market volatility affects investment values. Inflation erodes savings. Liquidity risks may prevent quick access to funds.