What you need to do to protect your spouse or partner financially

The most direct way to protect your spouse or partner is to name them as a beneficiary on accounts and policies that pass outside your will, and to create or update a will and any trusts that fit your situation. Money in retirement accounts, life insurance, and payable-on-death bank accounts goes straight to whoever you name—it doesn't go through probate and doesn't follow your will. Everything else—your house, your car, your brokerage account—passes according to your will or state law if you don't have one. Your spouse or partner also needs to know where your money is, what passwords and account numbers are, and who to contact when you die.

The steps are straightforward: gather your financial information, decide what you want to happen to each account, name beneficiaries where the option exists, write or update your will, consider whether a trust makes sense for your situation, and leave your spouse or partner a document that lists everything and explains how to find it. You don't need a lawyer for all of this—some of it you can do yourself, and some of it depends on how much money you have and how complicated your family situation is.

Key Takeaways

  • Retirement accounts, life insurance, and bank accounts with payable-on-death designations bypass your will and go directly to whoever you name as beneficiary.
  • Your spouse or partner needs a written list of all your accounts, passwords, insurance policies, and the contact information for each institution.
  • A will covers everything else—your house, car, and other property—and names who gets what if you die without one.
  • If you have significant assets or a blended family, a revocable living trust can make it easier for your spouse or partner to manage your money without going through probate.
  • You should review and update beneficiary names every few years, especially after marriage, divorce, or the birth of children.

Name beneficiaries on retirement accounts and life insurance

Retirement accounts—401(k)s, IRAs, Roth IRAs, and similar plans—let you name a beneficiary directly. When you die, that money goes to whoever you named, and your spouse or partner doesn't have to wait for probate or follow your will. The same is true for life insurance policies. You fill out a form with the financial institution or insurance company, name your spouse or partner, and that's the legal owner of the death benefit.

Check your current beneficiary designations now. Log into your retirement account online or call the plan administrator and ask who is listed. If you named an ex-spouse years ago and never changed it, that person will receive the money even if you're now married to someone else. If you have no beneficiary named, the money goes to your estate, which means your spouse or partner has to wait for probate and may have to share it with creditors or other heirs. Update the form if anything has changed, and keep a copy for your records.

For life insurance, the death benefit is usually tax-free to your beneficiary, which makes it a straightforward way to leave money behind. If you don't have life insurance and your spouse or partner depends on your income, term life insurance (which covers you for a set number of years, like 20 or 30) is usually affordable. Your spouse or partner can use the payout to cover the mortgage, pay off debt, or live on while they figure out their next steps.

Set up payable-on-death accounts at your bank

Most banks let you add a payable-on-death (POD) designation to a savings or checking account. When you die, the money in that account goes directly to whoever you named—your spouse or partner—without going through probate. It's free to set up, and your spouse or partner can access the money quickly after you die.

You keep full control of the account while you're alive. Your spouse or partner can't touch the money, and naming them doesn't affect your taxes or theirs. Go to your bank in person or call and ask to add a POD beneficiary to your account. You'll need to provide their full name and Social Security number. Some banks call this a "transfer on death" or "in trust for" account—the idea is the same.

POD accounts are useful for money you want your spouse or partner to have right away—an emergency fund, money for funeral costs, or cash to live on while they sort out the rest of your estate. You can name multiple beneficiaries and decide what percentage each one gets, though most people name their spouse or partner as the sole beneficiary.

Write or update your will

A will is a legal document that says what happens to your property when you die. It covers everything that doesn't have a beneficiary designation—your house, your car, your furniture, your bank accounts without a POD designation. In your will, you name your spouse or partner as the person who gets those things, and you name an executor (usually your spouse or partner) to carry out your wishes.

If you die without a will, state law decides who gets what. In most states, your spouse or partner gets a share, but so do your children, parents, or siblings depending on who survives you. If you want your spouse or partner to have everything, you need to say so in writing. You can write a straightforward will yourself using an online template or a service like LegalZoom or Nolo, or you can hire a lawyer. For a straightforward situation—you're married, you have one or two bank accounts, and you want everything to go to your spouse—a DIY will usually works fine.

Your will has to be signed and witnessed according to your state's rules. Most states require two witnesses who are not related to you and not beneficiaries. Keep the original in a safe place—a safe deposit box, a fireproof safe at home, or with your lawyer—and tell your spouse or partner where it is. Give them a copy too.

Consider a revocable living trust if you have significant assets

A revocable living trust is a legal structure that holds your money and property while you're alive and passes it to your spouse or partner when you die, without going through probate. Probate is the court process that proves your will is valid and distributes your estate—it can take months or years and costs money in court fees and attorney fees. A trust avoids that.

You create a trust document, name yourself as the trustee (the person who manages it), and name your spouse or partner as the successor trustee (the person who takes over when you die). You then transfer your house, bank accounts, and other major assets into the trust's name. While you're alive, you control everything and can change the trust anytime. When you die, your spouse or partner steps in as trustee and distributes the money according to the trust document—usually within weeks instead of months.

A trust costs more to set up than a will—usually $1,000 to $3,000 with a lawyer, or $200 to $500 if you use an online service—but it saves money and time later. It's most useful if you own a house, have accounts in multiple states, or want to keep your finances private (a will becomes public record, but a trust doesn't). If you have a blended family or want to control how money is used after you die, a trust also gives you more options than a will alone.

Create a financial inventory document for your spouse or partner

Write down every financial account, insurance policy, and debt you have. Include the institution name, account number, login information (or where to find it), the contact phone number, and who the beneficiary is. List your employer's benefits—does your job offer life insurance or a pension? List your Social Security information. List your house, car, and any other major property. Include the location of your will, trust documents, and safe deposit box key.

This document doesn't have to be fancy. A spreadsheet or a handwritten list works fine. The point is that your spouse or partner shouldn't have to hunt for your accounts or guess what you owned. When you die, they can hand this list to your executor or lawyer and know exactly what needs to be handled. Update it once a year or whenever something changes—a new job, a new account, a paid-off debt.

Store this document somewhere your spouse or partner can find it quickly. A copy in your safe deposit box, a copy at home in a labeled folder, and a copy with your will or trust documents is a good approach. Tell your spouse or partner where it is. You might also consider a password manager like LastPass or 1Password where you store all your login information—your spouse or partner can access it with a master password you give them, and they can see all your accounts in one place.

Review beneficiaries and update documents every few years

Life changes. You get married, divorced, have children, or your financial situation shifts. Beneficiary designations and wills should change with you. If you remarry and don't update your will, your ex-spouse might still be named as executor or beneficiary. If you have a child and don't update your life insurance beneficiary, the money might go to your old partner instead of your new family.

Set a reminder to review your beneficiary designations and will every three to five years, or whenever something major happens. Call your bank, your employer's benefits office, and your insurance company and confirm who is listed. If you need to make changes, most institutions let you update beneficiaries online or by phone. For your will or trust, you can usually make small changes with an amendment (called a codicil) rather than rewriting the whole thing, though a lawyer should review it to make sure the change is legal in your state.

If you move to a different state, check whether your will or trust is still valid there. Most states recognize wills from other states, but some have specific rules. A lawyer in your new state can review your documents and tell you if anything needs to change.

Frequently Asked Questions

What happens if I die without a will or beneficiary designations?

Your property goes through probate, and a judge decides who gets what based on your state's intestacy laws. Usually your spouse or partner gets a share, but so do your children, parents, or siblings. The process takes months or years, costs money, and your spouse or partner might not get everything you wanted them to have. Naming beneficiaries and writing a will prevents this.

Can I name my spouse or partner as beneficiary if we're not married?

Yes. You can name anyone as a beneficiary on a retirement account, life insurance policy, or bank account—marriage is not required. However, if you die without a will, your unmarried partner has no legal claim to your property under state law. A will is especially important if you're not married.

Do I need a lawyer to write a will or set up a trust?

Not always. For a straightforward situation, you can use an online template or service. But if you have a house, significant money, a blended family, or you want to minimize taxes, a lawyer can make sure your documents are done right and fit your specific situation. A consultation usually costs $100 to $300 and can save your spouse or partner thousands later.

What if my spouse or partner can't manage money after I die?

You can name someone else as executor or successor trustee—an adult child, a sibling, or a professional like a bank or trust company. You can also set up the trust to give money to your spouse or partner gradually or through a professional manager, rather than all at once. A lawyer can help you structure this.

How do I know if my beneficiary designations are current?

Call each institution—your bank, your employer's benefits office, your insurance company, your brokerage—and ask who is listed as beneficiary. Ask them to send you a copy of the form on file. If anything is wrong or outdated, ask for the form to update it and keep a copy for your records.