The first few weeks after losing your partner are incredibly challenging – emotionally and mentally.

But there’s a significant financial challenge that almost nobody is ever prepared for: the simple reality of cashflow.

Having enough money coming into the household to cover all the outgoing costs can quickly become a critical concern.

This piles additional stress onto the already stressful experience of losing a loved one, and can make everything feel so much harder.

I recently created a video outlining some things to be aware of if you or someone you love is experiencing this situation. I’ve also summarised them below.

You control the flow of information

Something I always remind my clients is that banks, insurance companies, Centrelink and other financial institutions aren’t automatically notified when someone dies.

It’s up to the family to inform them – but it’s important to understand that doing so will set a series of formal steps in motion.

The bank will start taking the actions set out in its policy, including freezing any accounts held solely in that person’s name. Joint accounts will generally remain accessible to the surviving account holder.

This means that any direct debits due to come out of that account won’t be paid – which could leave you in a tricky situation with your mortgage, bills, insurance and other expenses.

It’s worth noting that you also won’t be able to access any salary that has been paid into the frozen account.

Steps to take before you notify the bank

In order to minimise disruption to your cashflow, there are some steps I recommend taking before you notify the bank that the sole account holder has passed away.

If you can lawfully access a statement, sit down with a trusted friend or family member and go through it carefully, noting any important payments that regularly come out of that account. Look for mortgage payments, life insurance, bills, and anything else that’s essential.

Contact the relevant institutions to find out how those payments can be transferred to an account that will remain active, ensuring they continue to be paid as normal.

Once that’s done, you can proceed with notifying the bank – confident that you’re not setting yourself up for a financial and logistical headache.

Paying for the funeral

While the bank account remains frozen – until the deceased’s estate has been distributed in accordance with their will – many people find themselves wondering: “How do I pay for the funeral?”

There are a couple of options here.

If cashflow allows, you may be able to pay for it personally and seek to have it reimbursed by the estate.

Or alternatively, you can request that the bank releases funds from the frozen account directly to the funeral provider – something many banks allow. But this can be extra administrative labour when you’re already in the depths of grief, which is why I advise outsourcing this task to a family member or friend if possible.

Organising the death certificate

Speaking of administrative tasks, another important step is organising the death certificate – the official document you’ll need to notify superannuation funds, life insurers and other organisations that your partner has passed away.

The funeral director will usually arrange for it to be issued – but bear in mind that it could take several weeks.

Following the order of operations

I wish more people knew that there’s an order of operations to follow after their partner passes away, instead of being left to flounder in a sea of uncertainty and stress.

Rather than taking a panicked, scattergun approach, doing things in the right sequence can make life feel more manageable during an incredibly difficult time.

Whether you do it alone or with a trusted support person, sitting down to review the accounts and arrange for essential payments to come from an active account can help you avoid unnecessary cashflow issues.

If this has raised any questions for you – or you need advice that’s tailored to your situation – I’d love to help. Book a free 15-minute conversation with me here.

Want to know more? Read my articles “What happens to the money after a loved one dies?” and “Joint vs sole bank accounts: what happens when a loved one dies?”