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It is a very sad moment when our loved one passes away and they will need your care and support during this time. In addition to grieving, you may also need to help them make some tough financial decisions, such as what they will do with their house and how they will pay the bills going forward. Here’s some advice for how to handle financials during this tough time, shared below by Wisdom Real Estate.

Offer Your Support Without Being Overbearing

The first step is to talk to your loved one and let them know that you are there to help. Ask how you can assist but also tell them what you are willing to do. Just don’t make it seem like your family member is useless and don’t give the impression that you are in charge and they can’t do anything about it. Financial issues are sensitive, so handle them with kid gloves.

Organize the Bills

Next, you need to get a good overhead view of the financial situation and the first step is to organize the bills. Ask your family member for all of their records and then sort out the bills by what is current and what is past due and prioritize those first. You should also look at which bills have recurring payments already set up and ensure that there is enough money available to keep paying those bills and all of the additional expenses.

Check the Equity of the House and Consider Selling

There will likely be bills to pay after the death of a loved one, and if the surviving spouse or the caregivers do not have the cash to pay, then you may need to look at alternative arrangements. One way to do so is to determine what the house is worth, and you can do that by calculating your home equity. Essentially, you will take your home’s current market value, then subtract the current mortgage balance and see what is left over. If the balance is less than ideal, then you can improve your appraisal value by updating your home with low-cost projects that can really pay off, like installing eco-friendly appliances. Then, if selling is worth the effort, then consider doing so. It is always encouraged to hire a realtor to help you through the process.

When you’re ready to sell, get in touch with the professionals at Wisdom Real Estate to ensure the process is smooth and as easy as possible.

Look Into a Rental

Keep in mind that one alternative to purchasing a new home after the loss of a loved one is moving into a smaller space, like a rental home. Though it may seem like a daunting task, there are plenty of resources available to make the process easier, including online listings. By supporting your loved one and utilizing the tools at your disposal, you can help them find a new place to call home during this trying time.

Consider Selling Your Business

If there is a business in the family, then you have other options. One is to see how you can streamline the company to make more money for the bills. The other option is to sell the company outright so you can satisfy all of the debts. Before you simply close and put your business up for sale, you need to do some legwork. The first step is to get a professional valuation which will factor in your profit margins, customer concentration, revenue trends, and other data in order to give you an estimate of what your business is worth. Once you have that information, gather all of the important documentation associated with the

business and start looking for a buyer. Once you find someone, get a contract in writing and contact a lawyer if necessary to cement the details. You can then use the money that you make to pay off your debts.

Apply for Benefits

There are also many benefits that you could use to pay off the bills. If they are already collecting social security, then you may be in line for a one-time death benefit. If there are children involved, then there may be additional benefits. Do your research to see what is available. There are a number of ways to stay organized and find money to pay the unexpected bills after a death. Remember to offer your support, check out which bills are past due, and consider selling the house or business if necessary, and you will find a way to make it work.