Helping a Senior Survive the Financial Turmoil of Widowhood
by guest blogger Sara Bailey, info@thewidow.net
Dealing with the loss of a spouse is an emotional burden, and it’s one made even more so by facing uncharted financial waters. Many seniors are thrown into the unexpected role of controlling their own finances, often for the first time. These difficulties are compounded when the deceased spouse provided an income.
While there’s not much you can do to ease the pain of loss, you can help your senior loved one avoid further heartaches by guiding them in the right financial direction. Here are a few tips you can offer and ways you can provide hands-on assistance when they need it most.
Retitle Accounts
When a spouse dies, it’s necessary to remove their name from joint accounts. Explain to your loved one the benefits of appointing a power of attorney in case they become incapacitated and can’t make financial decisions. By removing the decedent’s name and appointing a decision-maker, the senior ensures no one else can lay claim to their assets and has a safety net in place if they were to suffer a medical emergency.
Contact Life Insurance and Benefits Providers
According to MarketWatch, one of the first financial steps your loved one should take is to contact the decedent’s life insurance company, the Social Security Administration, and, if applicable, the human resources department of their employer.
Establish a Budget
If your loved one has received a life insurance payment, this step may not be urgent, but it is still necessary. Help them estimate how long their savings will last based on current monthly living expenses. This should include the mortgage, insurance and healthcare costs, and basic necessities, such as food and clothing. Maryalene LaPonsie of Mighty Widow goes into more detail on how to create a budget for the first time.
Stay Quiet About Lump-Sum Windfalls
If the surviving spouse received a large life insurance settlement, they are at a high risk of being targeted for handouts. Encourage them to avoid talking about their windfall to anyone other than their immediate family. The FBI reports that seniors are often the victim of con artists. Women over the age of 60 who live alone, such as in the case of spousal death, are considered special targets. Talk to your loved one about the potential for fraudulent contact, even if they haven’t announced their new found wealth.
Outsource Financial Planning
Sometimes, the thought of managing a budget and planning for an uncertain future can be overwhelming. Hiring a financial planner can mitigate some of these worries. HomeAdvisor points out that this takes the stress away from everyday money management, especially if the senior has a retirement portfolio and investments to consider.
Decide on Living Arrangements
When one spouse dies, it can be emotionally and financially difficult for a senior to live alone. Explore some options with them, including remaining in the home, living with an adult child, or entering an active or assisted living facility. If they have displayed signs of physical or cognitive decline, determining where they will live is a top priority. A 55-plus community may be a viable option for healthy seniors, as these properties are typically less expensive and allow them to be surrounded by other active members of their age group. This can stave off the effects of loneliness and depression that often come with being widowed.
Learning to function as an individual can be tough for seniors who’ve been married for many years. Taking control of their finances is a good step toward ensuring they are able to do just that.
