Hi friends.  We are excited to share, When a Senior’s Spouse Dies, Finances Can Get Overwhelming by Sara Bailey this week.  Thank you Sara for providing this great post for us!!  We really enjoyed it and appreciate the time you took for us!!

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WHEN A SENIOR’S SPOUSE DIES, FINANCES CAN GET OVERWHELMING

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If you’re looking to help a senior loved one take on new financial responsibilities after the loss of their spouse, keep reading.  From how to guide them through the funeral process to determining if they can afford a mortgage, the following advice can help.  Remember, many seniors have never had to manage their own money.  Be delicate, and know that patience is the key.

 

Start by gathering documents

When someone dies, one of the first things to do is collect their important paperwork like identification information and insurance papers.  The funeral home may ask for specific documentation before taking possession of the body.

 

Make funeral arrangements

Planning a funeral for someone they have loved for decades is a heart-breaking experience.  If the recently deceased had life insurance, confirm what paperwork is needed to file for disbursement.  Many people often use a life insurance payout to cover funeral expenses, but this can be challenging if the payout is less than the cost of the funeral.  According to Lincoln Heritage, the cost of the average funeral ranges from $7,000 to $12,000, and prices can go much higher depending on various choices.  This figure also does not include important elements, such as a gravestone, mausoleum, or cemetery plot.  Although this might not feel like the time to bring up money, gently guide the mourning widow/widower toward information to help them avoid going further into debt than necessary. 

You can help by searching for a casket, for example, or alternate transportation arrangements.  While they might feel obligated, they do not have to acquire these items and services from the funeral home.

If there is no insurance, your loved one and family members will have to cover these expenses out-of-pocket.  Unfortunately, funerals are expensive, but there are laws in place to protect grieving consumers. Be sure to ask for details relating to all the charges, and don’t hesitate to explore options.

Evaluate their money situation

With the basics established, the next crucial task is to evaluate your senior’s financial situation.  With the death of their spouse, they might have lost more than half of their monthly income. According to the Motley Fool, the average Social Security check is just more than $1,400 per month, which might not be enough to cover living expenses.

A decision might need to be made on living arrangements as well.  If their spouse had extensive medical bills or they can no longer afford their current home, it might be wise to talk to a realtor and discuss the value of their home.  If they have enough home equity, then selling may be a good choice. 

Alternatively, you might help them refinance.  This makes sense if their interest rate is high and they have enough cash to cover closing costs.  If they need to move into assisted living, look for a program that is based on income or that fits within their budget — they can also use home equity to pay for this.

 

Transfer accounts into the survivor’s name

Many married couples have one person’s name attached to bank accounts and bills.  Help your loved one determine what is in their deceased spouse’s name.  Then, using copies of the death certificate, add the survivor’s name to each.  Doing so early on can save time and trouble later. 

Death is never easy to digest.  But life goes on and, for the survivor, this means tackling new challenges.  As a concerned family member, you can help ease this burden while your loved one

is grieving.  The above tips can get you started, but remember to be patient; they’ve experienced a great loss, and learning how to handle these new responsibilities might take some time. 

 

Take a look at some other articles by Sara Bailey  we think you will love:

How To Live Well Without Sacrificing Your Savings

How Parents Can Build A Strong Financial Future For Their Children and Themselves

 

Author Bio:

Sara Bailey

Sara Bailey hopes that by sharing her journey of grief she can provide insight and hope for others who experience loss.  She created TheWidow.net as a way to share her unexpected journey of losing her husband and learning to be the best parent (and person) she can be while nurturing her grief.

 

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