by Rachelle de Bretagne

Created on: July 13, 2009   Last Updated: August 14, 2009

When a person loses a loved one, they are in an emotional state and financial decisions made at a time such as this can be misguided. The problem with loss is that makes people very vulnerable. In an effort to honor the memory of the person lost, they may make decisions they will later regret. This article is based on personal experience of mistakes made after the loss of a husband.

*Taking time out.

*Going through the stages of grief.

*Talking to financial experts.

*Trusting your instincts.

*Waiting until the right time.

Taking time out.

Taking time out is sensible. What happens when you lose someone is that your judgment is impeded. Of course, you will have to make day to day decisions in order to keep the bills paid and your home running, though making any large financial decisions in this state is ill advised.

Your mind is not as focused and clear as it will be several months down the line. In order to take time out, put all funds into an account which earns a decent amount of interest and leave it there until your mind is clearer and you are able to make sound decisions.

Going through the stages of grief.

One of the reasons financial decisions are unwise when you lose someone is that you have the process of grieving to go through. Part of this process may involve guilt. The money you inherit may feel like blood money at a time when your loss is a higher priority than a financial one. It is not wise therefore to make huge life changing decisions during this process.

Talking to financial experts.

Many people who are left money to deal with have never had to deal with problems of this magnitude. It is therefore essential to have time to seek the advice of several financial advisors. Unbiased advice is the best, and an accountant and a lawyer may be a good bet, weighing up the advice of both before making changes.

Trusting your instincts.

Trusting your own instincts at a time when they have been knocked for six isn't a great idea. Your perception of reality is affected by loss. Give yourself time to adjust before trying to make decisions which may harm your future.

Waiting until the right time.

Many people who lose loved ones regret decisions they make during the process of mourning. They may sell up the family home which actually turns out to be their refuge in years to come. They may give away money in the mistaken belief that they don't deserve it. It's not the right time to make these kinds of decisions as mistakes cannot be undone.

When the grieving is over, and life gets back to some form of normality, you have a chance to address all these issues, and will make wiser decisions, distancing yourself from the loss, and able to put things into correct perspective.

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