Losing your spouse is an incredibly difficult experience that can leave you feeling emotionally overwhelmed for your grief and a little disconcerted as you now have to take on their responsibilities. Change is hard for all of us, but after being together for so long, it may seem like an impossibility to adjust to your new circumstances but in time you can find that your new life can be wonderful. I remember after my grandfather passed away quite a few things changed. The first time my family pulled up to grandma’s house a few months later, it had been painted P-I-N-K! That was quite a change from Harry’s conservative paint job. My grandma “Dot” reconnected with so many of her friends. She took many trips to visit old family and acquaintances. She missed her husband dearly but was able to focus on all those things just she wanted to do and she had a great time doing it.
Losing a spouse also has significant financial implications. I cannot comprehend the difficulty of losing a spouse after so many years together, but I may be able to shed some insight in to things you can do to ease your burden.
Understanding the Financial Impact:
The loss of a spouse can have a profound effect on your finances, especially if your partner was the primary income earner or managed the household finances. Often times a spouse may have gone to a care facility, which can quickly drain your financial resources and put you in a very different financial picture. Here are some things you may want to consider:
a. Loss of Income: Coping with the loss of a spouse’s income can put a strain on your overall household finances, potentially affecting your ability to cover expenses and maintain your current lifestyle.
b. Insurance and Benefits: Navigating through insurance policies, pension plans, and other benefits can be overwhelming. However, taking the time to review and update these arrangements can provide a clearer understanding of the financial support available to you. Now would be the time to reach out to your financial advisor to update your strategies based on your current needs.
c. Debt and Expenses: Assessing any outstanding debts and ongoing expenses, such as mortgage payments, utility bills, and healthcare costs, is essential. This assessment will help you create a plan to manage these obligations while keeping your financial well-being in mind.
How a Reverse Mortgage may help:
During this challenging period, a reverse mortgage can serve as a valuable tool to alleviate financial burdens. Here’s how it can bring relief and security:
a. Access to Home Equity: With a reverse mortgage, homeowners aged 62 or older can unlock their home equity without selling their property. This infusion of funds can provide a much-needed sense of stability and security during this transitional phase.
b. Supplementing Income: A reverse mortgage can bridge the gap left by the loss of your spouse’s income. It offers a way to access funds that can be used to help with funeral expenses, cover daily living expenses, medical bills, or unexpected costs, providing a financial lifeline when you need it most.
c. No Monthly Mortgage Payments: One of the most reassuring aspects of a reverse mortgage is that you won’t have to worry about monthly mortgage payments. This relieves the burden of financial obligations, freeing up your resources to focus on other essential needs.
d. Flexibility and Control: A reverse mortgage offers flexibility in how you receive the funds. Whether you opt for a lump sum, monthly payments, a line of credit, or a combination, the choice is yours. This flexibility allows you to customize the loan to align with your unique financial requirements.
While a reverse mortgage can provide significant benefits, it’s important to consider a few key factors:
a. Eligibility and Requirements: Understanding the eligibility criteria, financial assessments, and obligations associated with a reverse mortgage is crucial. Working closely with a reverse mortgage specialist will ensure you have the information needed to make informed decisions that suit your circumstances.
b. Future Planning: During this time, it’s helpful to engage a trusted financial advisor who can assist in evaluating your financial goals and long-term plans. They can provide valuable insights into how a reverse mortgage may impact your estate, inheritance, and overall financial well-being.
c. Homeownership Responsibilities: Although a reverse mortgage offers financial relief, it’s important to remember that you are still responsible for property taxes, insurance, and general home maintenance. Ensuring that you can fulfill these responsibilities will contribute to a positive reverse mortgage experience.
Losing your spouse is an emotionally challenging journey, coupled with significant financial adjustments, Now is the time to lean on your trusted family and friends and re-evaluate your financial picture working with trusted financial advisors. If you would like to look into accessing your home equity you may contact Robert Krepps rkrepps@hightechlending.com or toll-free at 877-567-7476.
Robert Krepps, NMLS #255191, at HighTechLending Inc. HighTechLending Inc, NMLS # 7147, is an Equal Housing Lender. Licensed by the Department of Financial Protection and Innovation under the California Residential Mortgage Lending Act.
