Well before your deceased client’s estate is settled, you may need to provide the surviving spouse with both financial advice and emotional support. “I’ve worked with spouses who, prior to the death of their partner, had never dealt with financial matters,” says Murray Pituley, director of tax and estate planning with Investors Group Inc. in Regina. “This requires a fair bit of education.”

The beneficiary-spouse may have a different risk tolerance; if so, the asset mix of any investments will need to be adjusted. And the spouse will have to arrange for a new will and a power of attorney, Pituley adds: “Have her give some thought to whom she wants to act as her executor and attorney.”

The question of moving to a new home may also arise. Consider how the title of the new or existing home will be registered, Pituley says: “I wouldn’t recommend putting it into joint ownership with the children just to avoid probate fees upon her death. This can work in certain situations, but the client needs to be aware of all the ramifications.”

The surviving spouse may not have control over her home if she wants to sell it. She also could be liable for claims from her children’s creditors. And, if the home is sold, gains in the value of the property could be subject to income taxes because it is not the principal residence of some of the owners.

— ROSEMARY MCCRACKEN