Ask Terry Questions Spousal benefits

Spousal benefits

By Terry Savage on February 04, 2025 | Social Security

My friend’s husband died and she was told by her attorney and social security in Wisconsin that she could not receive her husband’s benefit for a year because they had capital gains. Can that be?

Terry Says

I have no idea how one issue relates to another. If she has reached the age of 60 (or has minor children), she can file for benefits on his record. (She would get a higher widow’s benefit if she waits til her own full retirement age.)

There would be no capital gains on assets held at death. If they were held in joint name, she now has a new “cost basis” for half of the assets — but no taxes due until she sells those assets! So no capital gains!

She needs to find a new advisor. Please have her write to me directly to explain her situation and I’ll point her in the right direction. I have a good friend who is a fiduciary advisor in Wisconsin.

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