How to Avoid Bequeathing an Estate Disaster

Columnist Terry Savage is known for her no-nonsense honesty about finances and estate planning, and a recent column in the Chicago Tribune, “Terry Savage: Avoid the heartbreak of inheriting a financial mess,” is no exception.

Savage reports on two emails she received describing the experiences of widows who faced financial hardships from declined credit cards and an inability to access investments, among other financial challenges, just after their spouses had died.

Estate plans aren’t a luxury—they are a necessity, and so is planning for the death of a spouse. The will is submitted to the court for probate, which can take months. While the will is being probated, bills still need to be paid and investment decisions need to be made. However, when assets can’t be accessed, stress adds an unwanted layer to grief.

One option is a revocable living trust naming each spouse (or an adult child or trusted friend) as a successor trustee, who is automatically empowered to act upon the death of the named trustee. This requires that a trust be created and assets be retitled in the name of the living trust.

Each spouse needs to have independent credit in their own name, not just as an “authorized user” on someone else’s credit card. Anyone who is an adult should have their own individual credit card to avoid being cut off upon the death of a spouse. This is also how one builds a credit rating, which is necessary for car loans, mortgages, and in some cases, job applications.

An estate plan needs to be done while both spouses are alive and competent. Meeting with an estate planning attorney and formalizing an estate plan will clarify wishes regarding the distribution of assets after death, but, equally important, it will clarify what will happen when one spouse dies and what the surviving spouse will need to do to maintain the household’s finances.

Be sure to have bank accounts used for day-to-day transactions titled with both names as “joint tenants with right of survivorship.” This lets a spouse have access if one has died or is incapacitated. However, here’s the thing: if one spouse is incapacitated, the other may not be able to sell any property titled in joint names. This is often addressed by creating a revocable trust and transferring property into it.

If you don’t have an estate plan, begin the process immediately by calling an estate planning attorney’s office and making an appointment. Have a trust created, called the “Johnson Family Trust,” with John and Mary Johnson as co-trustees. Then be sure to have the title to all accounts and your home changed into the name of the trust.

While you’re meeting with an estate planning attorney, create a healthcare proxy and a living will . These are for end-of-life instructions that no one likes to think about but that everyone needs. At the same time, have a power of attorney created to authorize each of you to manage finances in case of incapacity.

These documents are just as important, if not more so, for single people. They’ll need to name a trusted person to serve as a successor trustee.

The key is to have the estate plan done while you are well enough to make the decisions and execute the documents. Leaving a spouse with a financial disaster is no way to say goodbye.

If you’re ready to start planning your family’s future, book a consultation with  Hudson Legacy Law  today.

Reference : Chicago Tribune (March 7, 2026) “Terry Savage: Avoid the heartbreak of inheriting a financial mess”