Budgeting for bereaved parent
If your parent has lost a partner who used to manage the budget for some or all of the household finances, taking these on after they die can feel overwhelming. We suggest some simple steps to help them take control of your money
1. Check the bills are being paid. It’s important to keep on top of household bills so that your parent doesn’t get into arrears. Gather together all bills and make a list of all the companies and organisations they pay regularly. Pay any urgent bills and any arrears.If any bills were either in their partner’s name or joint names, get them changed to a sole name.If any household bills were paid from a bank account in their partner’s sole name, notify the company and change the payment details to an account in their name
2. Deal with any bank accounts. Making sure your parent has access to at least one bank account will mean they can deal with all the household bills. It will also mean that people can make payments directly to them.If there are joint bank accounts, get them put into your parent’s sole name. If they don’t have a bank or building society account in their name, open one
3. Manage your cards and loans. Your parent needs to know exactly what they owe so that they can keep up with repayments and avoid getting into arrears. Gather together all the paperwork relating to credit cards, store cards and loans and make a list of any money owed. Cancel any cards that are paid off and that they don’t need. For any joint cards or loans, make sure they keep up with repayments – they’ll continue to be responsible for paying these. If their partner had any cards or loans in their sole name, then the outstanding balance will need to be paid from their estate. If your parent is struggling to keep up with credit card or other repayments, contact the companies involved as soon as possible
4. Work out their budget. Knowing exactly what you’ve got coming in and going out is essential if you want to stay in control of your money. Try this budget planner
This article is provided by the Money Advice Service.
