A Financial To-Do List After the Death of a Senior Parent.
Whether sudden or expected, the death of a spouse can be life-shattering for a senior widow. It can take three months for seniors to physically recover from the aftermath of a loss. Nonetheless, financial matters must be dealt with quickly after a spouse dies. For relatives who want to help but aren’t sure how, taking the reins on financial affairs is among the kindest things you can do for a bereaved loved one.
What to Do Immediately:
Notify the Social Security Administration:
Funeral homes may notify the Social Security Administration of a death on your behalf. However, if they didn’t or you’re unsure, contact the SSA directly. While the deceased’s benefits will stop, surviving spouses may be eligible for a one-time death benefit and survivor benefits.
Cancel supplemental Medicare plans:
Medicare coverage is terminated automatically upon notifying the SSA of a death, unless the deceased had supplemental coverage or a Medicare Advantage plan. In that case, you’ll need to contact the insurer directly to cancel coverage. You’ll need a death certificate in order to make changes to accounts, so ensure you’ve requested extra certificates from your state’s office of vital statistics.
File a life insurance claim:
If your deceased loved one had a life insurance policy, file a claim for the death benefit. Depending on the size of the settlement and the surviving spouse’s needs, you may choose to take the death benefit as a lump sum payment or in installments. In general, annuity payments are a good option for seniors with long life expectancies, while a lump sum payment is a better choice if your loved one is in poor health or needs funds for funeral expenses or outstanding debts.
Make funeral arrangements:
While insurance companies try to issue settlements quickly, you may not receive funds in time to pay for a funeral. In that case, you’ll need to make other arrangements. Funeral Costs average between $9,000 and $15,000. If a traditional burial is out of your budget, consider a cremation: A full cremation averages just over $6,000.
Looking at the Big Picture:
Once the urgent tasks are out of the way, it’s important to assess your loved one’s overall well-being — both financial and personal.
If your loved one wants to move to a smaller home and be closer to other seniors, you may consider moving them into an independent living community. If your loved one isn’t able to live completely on their own, assisted living may be the best option. These facilities can help seniors with daily tasks, including preparing meals and administering medication. Research available communities in your area to determine the costs. In California, the median annual cost of assisted living communities is $54,000. While that may seem high compared to a senior’s current living costs, consider that these communities give seniors the chance to live safely and comfortably, and your loved one will have access to a community of peers so they’re less likely to grow isolated.
From handling the little details to finding the best answers to big-picture financial questions, any help you offer during this difficult time is a weight off your senior loved one’s shoulders. While broaching conversations about the future is difficult, it’s important to think beyond the immediate details and consider how your loved one’s life will change following their loss. By taking the next steps now, you can ensure your loved one’s future is safe, supported, and financially secure.
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Thank you for your insight Lucille