Guest Post By Sara Bailey of thewidow.net

Losing your spouse is a monumental change at any age, but this can be especially hard for seniors who have built their lives together. With all of the emotional upheaval death brings, there are also practical considerations. These include taking essential steps to protect the surviving spouse’s financial future — from necessary immediate decisions to making a plan for your loved one’s future well-being. Here’s what you need to keep in mind.

What to Do First

Some of the first steps you should take are legal necessities. These immediate actions include securing your spouse’s personal property, obtaining copies of the death certificate, and beginning to gather essential documents, such as bank records and insurance documents. Taking these steps right away will make sure you have all the information necessary so your loved one can make the best financial decisions moving forward.

Pressing Financial Decisions (and Ones That Should Wait)

Start by talking with your loved one about their overall financial picture and identifying any noticeable changes that will make an immediate impact. For example, healthcare needs are ongoing, which is why making sure your loved one has good health coverage is a primary concern. You can help by taking a look at their coverage and choosing a plan that provides the benefits they need while also fitting in their budget. In place of original Medicare, some seniors prefer Medicare Advantage plans, which are offered by private companies. Many of these plans fill in the gaps that aren’t covered by original Medicare and include benefits like dental, vision, and medications.

Along with making sure your loved one’s essential needs are taken care of, you also want to help them form a basic financial plan. We aren’t talking about big-picture, long-term financial goals; this is more of a plan for handling everyday expenses. Start by contacting banks and consolidating accounts. You should also contact credit card companies to inform them of the death, as well as credit-reporting companies to protect your loved one against identity theft. 

A surviving spouse may be responsible for some debts, but this all depends on the situation. For example, someone who is a co-signer on a loan or a joint account holder on a credit card may be required to pay off the debt. However, the Consumer Finance Protection Bureau explains that a joint account holder is not the same as an authorized user.

Finally, though your loved one doesn’t need to make any major decisions like moving out right away, it’s a good idea to start thinking about their options. If your loved one finds that living alone is unsafe for them, they can look into assisted living. With this type of senior living, your loved one will be cared for in an  independent setting (e.g., apartment-style home), receiving help with medications, meal prep, and other personal needs. In Los Angeles, there are many assisted living facilities to research, and though costs will vary, keep in mind that the median cost of all facilities in California is around $54,000 per year. When researching your loved one’s options, arrange to have them tour a few facilities to see what amenities they offer.

Understand Your Benefits

The time right after someone passes is also when you should investigate the death benefits your loved one is entitled to. These may include:

• Social Security: If the person who passed away received Social Security benefits, the surviving spouse can choose to continue receiving their own Social Security benefits or receive their spouse’s benefits instead. In addition, your loved one may also be eligible to receive a one-time death benefit payment from the Social Security Administration.

• Life Insurance: If there is an eligible life insurance policy, contact the insurance company to begin collecting benefits.

• Retirement Benefits: Your loved one may be able to receive benefits from their spouse’s pension or another type of retirement account. 

All of these benefits are highly dependent on personal circumstances, which is why we recommend getting advice from your attorney or a trusted financial advisor to make sure nothing is overlooked. It’s easy to get lost in these legal requirements at a time when you’re grieving. Your role as a loved one isn’t easy either, but your guidance through these financial obligations will make a tremendous difference for the spouse who is left behind.

Sara Bailey created TheWidow.net shortly after losing her husband to support her fellow widows and widowers, it is where she shares her journey of grief so that she can provide insight and hope for others.
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