A calm, faith-centered guide for women navigating finances after loss

When the storm of loss settles, taxes are often the next wave. This handout offers a simple, faith-anchored way to understand the most common tax questions widows ask and where wise planning can help. Use it as a checklist to prepare your next conversation with a fiduciary financial planner (CFP®) and your CPA.

1. What happens to my filing status now—and when does it change?
In the year of death, many can still file Married Filing Jointly. If a dependent child is present, Qualifying Surviving Spouse may apply for up to two years. After that, most move to Single, often increasing taxes.

2. Will my income taxes go up next year (the “widow’s tax trap”)?
Yes, often. Brackets narrow and standard deductions shrink when moving from joint to single. Plan ahead for survivor benefits, pensions, and RMDs so you’re not surprised.

3. Do I need to make or adjust estimated tax payments?
If your spouse handled withholding and estimates, revisit both. Reset W‑4s and quarterly estimates as income sources change.

4. What should I do with our IRAs and retirement accounts?
Evaluate a spousal rollover vs. keeping an inherited IRA. The right choice affects future RMDs, timing of withdrawals, and taxes.

5. Is now a good time for Roth conversions?
The final joint-filing year is often a window to convert portions of pre-tax IRAs at lower rates. Coordinate with your planner and CPA to model bracket impacts.

6. How is Social Security taxed after my spouse’s passing?
Taxability thresholds and filing status change. Integrate survivor benefits with pensions and portfolio withdrawals to avoid stacking into higher brackets.

7. Do I still qualify for homestead or property tax benefits?
Many states (including Florida) allow widows to retain or reapply for homestead/senior exemptions. Confirm deadlines and paperwork with your local property appraiser.

8. If I sell the house or investments, how are capital gains handled?
A step‑up in cost can reduce gains on inherited assets. Selling a primary residence within two years may allow up to a $500,000 exclusion if you qualify.

9. Which accounts, forms, and beneficiaries need updating?
Review beneficiary designations (IRAs, life insurance), update tax forms (W‑4, 1099s, SSA‑1099), and coordinate titles/POAs/health directives with your attorney.

10. Are there giving strategies that can lower my taxes while honoring our values?
Consider Qualified Charitable Distributions (QCDs) from IRAs (70½+), donor‑advised funds, or gifting appreciated assets to align generosity with tax efficiency.

Planning Notes

• Coordinate with a CFP® fiduciary and your CPA before making moves with taxes or retirement accounts.
• Keep organized copies of death certificates, beneficiary forms, account statements, and prior tax returns.
• Create a 12–24-month cash‑flow plan so investment/tax decisions are not rushed in the fog of grief.

Fero Financial — Faith Ark – Planning for Women in Transition
Rebekah J. Fero, CFP®, AIF® | Port Charlotte, Florida
www.ferofinancial.com

Disclosure: This material is for educational purposes only and not individualized tax, legal, or investment advice.
Consult your CPA and attorney; rules can change, and individual circumstances vary.

Securities offered through LPL Financial, Member FINRA/SIPC. Advisory Services offered through IFG Advisory, LLC, a registered investment advisor. IFG Advisory, LLC and Fero Financial are separate entities from LPL Financial.