If your senior loved one has recently lost their spouse, grief may be affecting their decisions, especially in the complex financial realm. Therefore, you may have to step up and provide some support. You can do this in several ways, but avoid becoming overbearing even as you guide your loved one through sorting out their finances.
Evaluate the Situation
Your first step in helping your loved one with finances is actually to ask their permission. Don't just barge in and assume they want your help. Respectfully offer your assistance, and if your loved one refuses, you might emphasize how much you can offer in this time of grief.
If your loved one accepts your help, evaluate their financial situation. Take a look at checking and savings accounts, investments, bills, and debts. Draw together all financial paperwork into one place and put everything in an easily accessible folder. Don't skip this step; it saves you time in the long run.
Construct a Budget
Next, help your loved one construct a budget. A person's financial situation can change greatly with the loss of a spouse, so make a new budget that reflects current circumstances. Include all sources of income and all expenses, then figure out how to make the columns balance. You might have to advise your loved one to cut some expenses, so look for unnecessary costs that have crept in over the years.
Develop a Schedule
To stay organized, develop a financial schedule for your loved one. Make a list of monthly bills and their due dates. Note too the days on which your loved one receives payments from Social Security, pension plans, investments, and other income sources. Plan at least two sessions a month for checkbook balancing, bill payment, budget checks, and other financial activities. A regular schedule helps your loved one feel more secure and confident about staying on top of finances.
Consider Downsizing
If your loved one's income has decreased, you may need to guide them to consider downsizing. Selling a home during a time of grief is extremely difficult, but it may be necessary. Research local home prices, meet with a real estate agent, and help your loved one through the complexities of selling a home and finding a less expensive place to buy or rent. Provide plenty of emotional support, too.
Take Care of Business
Finally, you might have to assist your loved one with business issues. If they own a business, you can step up and help run it, at least for a time, or you may encourage your loved one to sell out and retire. If the latter is the case, get a professional business valuation so that you know exactly what the business is worth, including all its assets, real estate, and inventory. Then work with a professional who has experience in business sales to get the job done.
Provide Financial Support
Your loved one needs extra support during this difficult time, so be ready to provide it, financially and otherwise. Check out the GoodEnding website for more ideas.