Whenever we read articles on the grieving process, especially after the loss of a spouse, one of the main teachings is that you should not make any life-changing decisions within the first year after the death. This is also the accepted philosophy when marriage problems cause a permanent separation. Counselors believe that your emotions are roar after such a loss and you will often make the wrong decisions for the wrong reasons. Heeding this advice has worked well for a number of people I know who decided to wait for this period of time before making major changes in their lives. Laws, however, made it financially beneficial for a widow or widower to sell their homes in the same year their spouse passed away. If they waited until the next year, the tax exclusion on their home’s profits was cut in half. This would mean a great deal to the average person.

The Mortgage Forgiveness Debt Relief Act signed into law last December has changed this law. The surviving spouse is now able to take two years after the spouse’s death to sell the jointly owned home and keep profits up to $500,000 tax-free.

This change in the law can be extremely beneficial to people when they need time and compassion most in their lives. The new law allows the proper amount of time to grieve the loss and plan for your future.