The loss of a family member or spouse is a challenging time and can significantly impact your financial situation.

Here are some suggestions on how to navigate the complexities of finance as you consider a new financial status quo.

When your partner dies, usually you inherit all assets previously held in joint names. If the property is held as tenants in common, your partner’s share goes to the estate. If it is sold within two years of death, it will be exempt from capital gains tax. If you and your partner held shares in joint names, contact the share registry, and they can transfer ownership to you without paying capital gains tax. If the shares were in your partner’s name, they are distributed according to their will. 

If your partner had superannuation, contact their fund and check whether you are eligible for a payment. Superannuation benefits are paid to spouses and dependent children tax-free. Any debts held by the deceased are paid from the estate, and you will not be liable to cover them unless the debts are in joint names. 

Check if your partner has left instructions about what they want for their funeral. These are usually part of a will and may include their preference for burial or cremation and the type of funeral service. 

Funeral costs can vary greatly. While you may feel pressure to choose the top of the range, stick to an affordable amount. It is worth getting a few quotes from different companies. If you do not feel up to calling around, ask friends or family to help. Many funeral companies belong to the same parent company. When comparing quotes, make sure you are dealing with different parent companies. 

There are a few ways you can get help with funeral costs. Firstly, if your partner has a separate bank account, contact their bank to notify them. They will advise you on what steps you need to take. The bank may release money from your partner's account to help pay for funeral expenses. This happens before probate is granted - before the court validates the will. If you had a joint bank account, the money is transferred to your account. 

Secondly, check to see if your partner prepaid for their funeral. Ask your solicitor or the executor of your partner's estate. If they have prepaid, check the arrangements to pay out the money. Some funds contribute directly to the cost of the funeral, with the amount depending on the agreement. Others pay the money into the deceased's estate and allow the executor to make the funeral arrangements. 

Thirdly, ask the funeral company if you can pay them in instalments to make costs more manageable. You may also be eligible for a bereavement payment through Centrelink. This may be a lump sum or a short-term payment. See bereavement payment on the Services Australia website. 

The funeral director will usually apply for a death certificate for you when they register your partner’s death. You can use this as proof of death when transferring or cancelling services. 

Finally, if your partner received a pension from the Department of Veterans Affairs (DVA), you may be eligible for a one-off, non-taxable payment. Visit bereavement assistance on the DVA website. 

Your partner may have left a will setting out what they wanted to happen to their estate. If your partner did not have a will, laws set the order in which relatives may inherit from the estate. You or someone else may be the executor of the will. This person is responsible for ensuring assets are shared according to the will.  

After the loss of your partner, your income might change. Another change might be that your household finances (including bills and insurance costs) have now become your sole responsibility. 

If your partner had life cover through an insurance or super fund, contact the fund to find out how to claim. Some life insurance companies pay beneficiaries as soon as 48 hours after presenting a death certificate. You may also be entitled to financial assistance through the Department of Human Services. If your partner nominated you as a beneficiary of their superannuation, ask the fund how to access this. For more information, visit the super death benefits on the Australian Taxation Office website. The Financial Services Council can help you find lost life insurance policies. 

It is important to inform service providers about the death and update the names on your accounts. Your family member or partner's financial assets and bank accounts will be automatically frozen until their estate settles. If you have a joint account, you can access the funds. 

Contact providers to transfer services into your name or cancel any you no longer need. For example: 

• Bank and investment accounts 

• Phone, internet, streaming services 

• Utilities (electricity, gas, water) 

• Memberships and registrations 

• Email and social media 

The Australian Death Notification Service lets you notify multiple agencies at once online. Before making changes, service providers may ask you for a copy of the death certificate and proof of your identity. 

If you are struggling during this time, help is available.  

• Lifeline: 13 11 14 

• Australian Centre for Grief and Bereavement: 1800 642 066 

• Beyond Blue: 1300 22 46 36 

• Services Australia: 13 17 94 

For further reading: LDB and Moneysmrt.com.au