Financial planning for your future

What financial decisions should you not rush?

The period immediately after a death is not the time to make major financial decisions. Do not sell the family home, consolidate investment accounts, change superannuation funds, or commit to an investment strategy in the first six months unless circumstances genuinely require it.

Grief affects judgment in ways that are real but not always obvious. Decisions that feel clear and rational in the immediate aftermath can look very different six months later. Giving yourself time is not avoidance. It is prudent financial management.

The only decisions that should not wait are those with fixed deadlines: time-sensitive Centrelink notifications, insurance premiums that need to be maintained, or urgent financial obligations. Everything else can be assessed methodically once the estate administration is underway.

How do you get a clear financial picture?

Before making any forward-looking financial decisions, understand what you have. Make a complete list of all assets: property, bank accounts, superannuation, investment accounts, shares, and insurance policies. Also list all liabilities: mortgage balance, debts, and ongoing expenses. This picture, however confronting it may initially feel, is the foundation for all planning.

If you have received an inheritance from the estate, or a superannuation death benefit, factor those into your picture but do not spend or invest them while you are still building your understanding of the whole.

A financial planner or accountant can help you build this picture and model different scenarios: what does your cashflow look like over the next year? What are your income sources? What will change when you are assessed as a single person rather than as a couple?

What Centrelink entitlements might you have?

Your Centrelink entitlements may have changed significantly. If you were receiving payments as part of a couple, you will be reassessed as a single person. The income and assets test thresholds are different for singles and couples, and your pension or payment rate will be recalculated accordingly.

Review your entitlements including the Age Pension, Rent Assistance, Health Care Card, Commonwealth Seniors Health Card, and any bereavement-related payments you may not yet have received. A Centrelink Financial Information Service (FIS) officer can help you understand your options for free and without any obligation. FIS officers are financial advisers employed by Services Australia specifically to help people understand their Centrelink entitlements. You can find out what payments may apply to your situation and book an appointment at servicesaustralia.gov.au.

If you are of pension age and receive an inheritance or superannuation death benefit, the assets test may affect your pension rate. A FIS officer or financial adviser can help you model the impact and advise on any legitimate strategies available to you.

What do you need to review about your own superannuation?

Review your own superannuation situation. Is your fund still appropriate for your circumstances? Are your investment options and risk profile still right for your stage of life and financial situation? Do you have insurance within your super (income protection, life insurance, TPD) that is still relevant and appropriately structured?

If you have received a superannuation death benefit and are considering rolling it into your own super account, seek financial advice first. There are contribution limits and tax implications to consider, and the right approach depends on your age, your own super balance, and whether the benefit is being paid as a lump sum or an income stream.

Many people in this situation are approaching or in retirement. The decisions made about superannuation at this stage can affect income for decades. This is exactly the kind of decision that warrants proper, personalised financial advice rather than a best-guess approach.

What should you know about the family home financially?

Deciding whether to stay in the family home or sell is often the most significant financial decision in bereavement. There is no right answer that applies to everyone. For some people, staying in the home provides stability and connection to memories. For others, a home that was designed for two people no longer suits one.

Do not make this decision quickly. The emotional weight of this choice is enormous and it deserves time. Financial considerations, including stamp duty costs if you buy elsewhere, capital gains tax implications, and the impact on Centrelink assets testing, all matter but should be assessed with a full picture rather than in the immediate aftermath of grief.

If you stay in the home, make sure the property is properly maintained and insured, and that the title has been transferred to your name if it was previously held jointly or in your partner's sole name. Your solicitor can advise on the transfer process.

What insurance should you review?

Review all insurance policies you hold individually. Life insurance, income protection, trauma, and TPD policies may need to be updated now that you are managing on a single income. Some policies that were sized for a couple's obligations may be more or less than you now need.

Check whether you are still paying for policies that no longer make sense: for example, a large life insurance policy whose primary purpose was to protect your partner from loss of income, which is no longer the same risk. On the other hand, make sure you have adequate cover for your current obligations, particularly if you have financial dependants or a mortgage.

A financial adviser with expertise in insurance can help you review your cover and advise on what is appropriate for your current circumstances. Do not cancel any policy without understanding exactly what you are giving up.

How do you choose a financial adviser?

Look for a financial adviser who is licensed by ASIC (check the register at moneysmart.gov.au), charges a transparent fee rather than earning commissions from product recommendations, and has specific experience working with bereaved clients. The experience matters. An adviser who understands grief will pace the advice appropriately and not push you toward decisions you are not ready to make.

The Financial Advice Association of Australia (formerly the FPA) has a find-an-adviser tool at faaa.au. Your bank, super fund, solicitor, or GP may also be able to provide a referral. Many financial advisers offer an initial consultation at no charge.

At the first meeting, bring your financial picture: the list of assets and liabilities you have compiled, any superannuation or insurance documents, and any inheritance or death benefit information. The more information you can provide upfront, the more useful the advice will be.