By Teresa Greenhill
Losing a spouse uproots your life in more ways than one. Besides the heartache of loss and the stress of planning a funeral, the death of a partner carries some pretty heavy financial burdens—many of which need to be settled sooner rather than later. People of any age can have a hard time facing the mountain of financial decisions that need to be made while grieving, and seniors are no exception. Fortunately, there’s a lot you can do to help your senior loved one tackle their financial obligations and get a handle on things.
Covering Funeral Costs and Expenses
Funeral and burial expenses can add up quickly. Help your loved one budget for these costs and find affordable options. While grieving spouses may be tempted to purchase everything that they need from one funeral home, you can save your loved one a lot of money by comparison shopping for items like caskets and flowers and opting out of unnecessary extras.
Planning for the Future
Ensure that your loved one covers their most important financial obligations as soon as possible, including their mortgage and car payments, utility bills, insurance premiums, and taxes. After these high-priority bills are taken care of, help them plan for the future. How are they going to cover their ongoing expenses on a single retirement income?
If they live in a large, expensive home, selling and downsizing may be an attractive option. This can also be a good way to pay off existing medical bills or debts left by the deceased spouse. Not to mention that smaller homes are significantly easier to maintain! On the other hand, your senior loved one may decide it’s time to move in with family or make the transition into assisted living, depending on their needs and abilities. A professional realtor can estimate the sale price of your loved one’s home to help determine if selling is worth it. You can also use online calculators on sites like Redfin to determine what your senior loved one can expect to earn from the sale.
Settling Debts
According to Experian, any debts solely under the name of the deceased spouse will be paid from their estate. However, your senior loved one will still be responsible for making payments on any outstanding joint debt, including their mortgage and shared credit cards. If they live in a community property state, they may be responsible for paying their spouse’s outstanding medical bills as well. Help your loved one sort through all of these debts and bills so they know exactly what they are responsible for paying.
Claiming Benefits
Make sure your loved one claims all of the benefits they are entitled to. After losing a spouse, seniors can start collecting a Social Security survivor benefit at age 60. However, your senior loved one will only get some of the benefits each month. They will receive more money the longer they wait to claim these benefits and will get the full amount at their full retirement age. U.S. News stresses the importance of thinking this through carefully—sometimes, it’s better to delay survivor’s benefits to maximize your lifetime income. Help your loved one weigh their options and decide on the best time to claim their survivor’s benefit.
Remember, big life decisions are best to delay during periods of grief. Try not to push your senior loved one to make up their mind on major financial issues during this delicate time. While they may be itching to settle their financial situation as soon as possible and bring some order back into their life, encourage them to wait a couple of months before they make any permanent decisions.
Author: Teresa Greenhill is the co-creator of MentalHealthForSeniors.com, which is dedicated to providing seniors with information on physical and mental fitness so that they can be active and happy in their golden years.
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