Aunt never "worked"

[Anonymous]

Your aunt may be in trouble once her husband dies.

While he is living, he gets 100% of his Social Security and she can claim 50% of what he gets. So they get 150% of the husband's SS.

When he passes, she will be able to claim 100% of his benefit, which will be a reduction in household income for her. Yes, the money will now be supporting one person instead of two.

[Anonymous]

Anonymous wrote:She was a SAHM and even though she was/is working and saving all day, she never earned a paycheck. They do have savings, home and uncle's 401K but she shared that she worries if somehow they lived beyond their savings, it would be tough to live on just one society security check and not being eligible for medicaid and medicare, highly likely for health issues and taxes to drain their savings so what are her options?

She should qualify for Medicare based on her husband's work history.

Taxes should not drain their savings.

But her best plan is to be sure they are living in a paid for house where they can easily age in place, which has low maintenance costs, and to live in a community that has good health care, good transportation, and social services for elderly people.

[Anonymous]

Anonymous wrote:

Anonymous wrote:She was a SAHM and even though she was/is working and saving all day, she never earned a paycheck. They do have savings, home and uncle's 401K but she shared that she worries if somehow they lived beyond their savings, it would be tough to live on just one society security check and not being eligible for medicaid and medicare, highly likely for health issues and taxes to drain their savings so what are her options?

She should qualify for Medicare based on her husband's work history.

Taxes should not drain their savings.

But her best plan is to be sure they are living in a paid for house where they can easily age in place, which has low maintenance costs, and to live in a community that has good health care, good transportation, and social services for elderly people.

Paying off the house doesn't matter. You can reverse mortgage or sell after death.
For someone on a tight budget, a house is an extra expense vs condo/apartment, and has less access to elder care. Downsize sooner rather than later.