After a spouse dies, the survivor often ends up paying higher taxes on less income — something known by accountants and financial planners as the “widow’s penalty,” because women typically outlive their husbands.
Couples who know what’s coming often can take steps to soften the penalty’s effect, but too many don’t think far enough ahead, says Barbara O’Neill, a certified financial planner and educator in Ocala, Florida.
“A lot of people just underestimate what the impact will be financially,” O’Neil says. In my latest for ABC News, learn how to reduce your ‘widow’s penalty.’
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