How the death of a loved one can affect housing

The death of a family member or friend can be one of life’s most stressful times. While experiencing different stages of grief, some individuals find themselves considering lifestyle adjustments to cope with the new reality. One of these adjustments might be the need to reassess their living arrangements, whether for financial, emotional, social, or physical reasons.

Now is the time to reflect on what self-care actions you can take for yourself as the surviving family member. What will help you thrive?

As we stated above, there are financial, emotional, social, and physical reasons to sell a home and relocate. Which factors do you feel most relate to you and your desire to move?

Think about what home and financial duties you may have shared with your loved one. What are some pain points? If your loved one was responsible for yard work and house maintenance, then perhaps a condo or apartment with minimal upkeep would be a delight for you. Think through the new reality of duties you will be responsible for, and what the pain points are that you can avoid. This will help determine what housing option is best for you.

An estate attorney or real estate attorney can help you understand the logistics and process of selling a home once a co-owner has passed. This process can be more complicated than you may imagine.

Connect with an accountant to review your financial wellbeing. There are unique tax rules for surviving spouses (if applicable) and other impactful financial information to review before putting a house on the market.

Connect with a real estate agent to talk through your options. An ethical and professional realtor will also take into consideration your emotional wellbeing. This is an opportunity for you to leverage their expertise in housing options, profitability, the market, and what next steps may be helpful to you. A realtor can provide pros and cons to downsizing, neighborhoods, and guidance on school districts if needed.

Family and friends can be great sounding boards. While you may receive conflicting feedback, their thoughts can help you think through the pros and cons of moving. One consideration could be to temporarily move in with a family member or close friend to see how you feel about being in a new environment. They can also provide companionship throughout this transition.

Government Housing - If you lived with your loved one as an authorized dependent in government housing, then you are eligible to remain in the living situation for a year from the date of your loved one’s death. If you decide to move out of government housing before the 365th day, then you are entitled to a basic allowance for housing (BAH). The BAH is based on your loved one’s pay grade. You can learn more here. If you wish to stay in government housing after the 365th day, you are required to submit a letter for approval. If you are approved, you will be responsible for paying the rental charge.
Non-Government Housing - If your loved one passed away, you are still entitled to the basic allowance for housing (BAH) even if you do not live in government housing. You will receive the lump-sum payment of 365 days BAH based on the current rate for your loved one’s pay grade.

Affordable housing can be complex when the head of the household passes away. It is important to note that each housing authority has varying policies on how to move forward and usually require proof of death. Generally, if you are currently living in an affordable housing unit, one household member that is of age and legally able to execute an updated lease is required to move forward with assigning a new head of household and to update the family structure.
Similarly, if you are on an affordable housing unit waiting list, you may update the head of household as long as you are of age and legally able to execute a lease.
If children are the only surviving family members, then a temporary guardian may reside in the unit until the courts appoint a permanent guardian.