Losing a spouse is awful, and getting hit with a larger tax bill only makes things worse. Thinking about death is never fun, but failure to plan could mean serious tax issues for a surviving spouse. This is what’s often called the “widow’s penalty.”
Married couples enjoy many tax benefits, including higher thresholds for marginal tax brackets and higher standard deductibles. When one spouse dies, there may be some changes to income, but there likely won’t be as large of a change in living expenses.