I'm used to helping family and friends with questions about savings, retirement, spending, housing, etc. in the context that they are basically choosing between gratification now vs. later. But in either case they'll be ok. But now I have a family member in dire straits. I think she needs professional help. Who should she turn to?
She is a recent widow around age 65. Her husband recently passed away from myriad medical ailments. She has no savings. Her only income is social security. She is underwater on her home in Nevada and she's considering walking away.
Two major issues on top of this bad situation:
1. The life insurance policy of her recently deceased husband had lapsed. The policy was around $100k. He was very sick, resigned from his university job, the university stopped paying the policy, the insurance company had a wrong/old home address on file and the letter to renew the policy did not reach their home, the e-mail with information to renew their policy was sent to his e-mail address but he was not in the mental capacity to access any email.. and ultimately the grace period to extend the policy lapsed, and then he passed away. She wants to find a lawyer to sue the insurance company, claiming some kind of negligence like "they were trying to communicate with a man who was extremely sick and not mentally competent and/or they should have gone to greater lengths to get in communication with her/somebody else to renew". I think ultimately it's not the insurance company's responsibility. Does anybody think this is an avenue worth pursuing?
2. The deceased had considerable student loan debt from a PhD program from long ago. He took on this debt while they were married. As I understand it, the debt will be forgiven, but she will have to pay taxes on it. She doesn't have that money. And she is worried that "fake" income bump will increase her Obamacare health insurance premiums.
She needs one or more professionals (I can pay for it). Does she need a financial advisor? A CPA? A personal bankruptcy lawyer?
She's willing and capable of finding a part time job. She lives in Nevada.
Long ago (40 years) he was in the Air Force. I don't know if there are special support programs for widows of former military personnel.
Any advice is appreciated.