Many of us remember the most infamous wedding vow, “Till death do us part.”  But exactly what happens to the surviving spouse after your death? Most often we leave the surviving spouse the gift of poverty, a substantial reduction in income and debts that will certainly wipe out any remaining savings.

Every day I meet with clients that avoid facing the uncomfortable realties of spousal survivor planning. Two of the most common statements of avoidance are, “I don’t care what happens after I am gone” or “He or she will get my higher Social Security check.” This is a great tragedy because when you are gone, your spouse remains in the circumstances that you have provided.

Here is the timeline of the devastating costly events that could have ultimately been avoided if lifetime income planning, insurance and estate planning were done today and over your lifetime when all options were still available.

At age 40, you did not take advantage of your good health and acquire adequate life insurance designed to last a lifetime. At age 50, you did not get a long-term care policy based on your health and before you started taking almost every advertised prescription drug on television. At age 62, you ran to start collecting your Social Security check – a huge mistake when you have a projected remaining life of 20 years.

Now fast forward to the last five years prior to your spouse’s death. You will incur medical and long-term care costs removing approximately $250,000 to $450,000 of your accumulated savings.

At death, burial and funeral cost $20,000.

After death, there will be an immediate reduction or complete elimination of any monthly pension income, if one even existed. Additionally, your surviving spouse will lose one of the two monthly Social Security checks.

All is not doom and gloom. By doing nothing your surviving spouse will receive a death benefit of $255 from Social Security. Which plan seems more practical? Planning now or do nothing?

I urge you and your spouse to join the ranks of the prepared.

The simple truth is the less you plan, the more you pay!

Charles has master’s degrees in Taxation, Accounting and Education. Charles can be reached at 954-559-8556 or at charles@cehow.com.