In their golden years, many seniors will grieve the loss of their spouse. As if processing the loss isn’t hard enough, seniors who find themselves widowed will also have to handle some major financial responsibilities. The last thing that a grieving person wants to do is comb through bank statements or insurance policies, but you can step up to support them throughout the process. The wellness experts at Caring Places Management are happy to provide this checklist to help you and your loved one navigate tough legal and financial decisions during this trying time.
Organize Important Documents
Before making any big decisions, you and your loved one need to locate several of their spouse’s important documents. According to US Urns Online, you will need to obtain a long list of documents, including their will, identification, retirement account information, life insurance policy, tax returns, mortgage statements, utility bills, and more. You will also have to request several copies of their death certificate.
Their spouse may have kept everything organized and filed away, or you may have to do a little digging. Once you find the paperwork you need, store it in color-coded folders (Office Depot sells a pack for around $12) so that you can easily keep track of everything.
Revise The Budget
If your loved one’s spouse was typically responsible for paying the household bills, they might not have a clear picture of where they stand financially or their real monthly cost of living. Perhaps your loved one will receive some benefits after the death of their spouse, providing a little more wiggle room in their budget, but this is not a guarantee.
Take some time to go over the numbers together and draw up a budget that accurately reflects their new income and expenses. Consider their Social Security payments, IRA distributions, any pension payments, and how their tax filing status will change. If they need to cut down on discretionary spending, help them find areas where they can save.
To Sell or Not to Sell?
After the death of their spouse, your loved one may be burdened by funeral expenses and medical debts. Some seniors choose to sell their homes to cover their spouse’s end-of-life costs. Afterward, they might downsize and move into a smaller home or relocate to a retirement community to find some company.
This may be a smart financial move for your loved one, but you should ensure that they aren’t rushing into it. According to Verywell Mind, they should wait at least six months to decide if selling is truly in their best interest. Otherwise, they may sell too quickly, regret it, and realize that the fog of grief was clouding their mindset. Also, make sure to consider the cost of any necessary repairs or renovations.
Connect With Experts
As your loved one tries to cope with this tremendous loss, they will most likely feel powerless and overwhelmed. So one thing that might be helpful is setting up a nonprofit in their spouse’s honor. That way, their loved one’s memory lives on in a way that helps others. Additionally, it gives your loved one something to focus on and feel proud of. There are other bonuses as well, such as easily applying for government funding and the ability to enter agreements as an entity.
The death of a spouse is always a tragedy. There are no magic words that can make it easier for someone who is trying to come to terms with their loss, but your support can make all the difference in the world. By assisting your senior loved one with their finances after their spouse passes away, you can help them move forward with dignity.
This article is brought to you by Caring Places Management. Since we opened our doors in 1991, our mission has been to develop and operate “caring places”; senior care communities that holistically benefit their residents, resident families, employees, and the communities in which they are located. We create within each care community a compassionate living environment which fosters personal independence, freedom, dignity, privacy, safety, and a sense of well-being. For more information, please contact us today!
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