This is all-too-familiar to me, after having helped a couple older relatives through serious late-life changes like this.
Further, the general lack of safety net doesn't really apply when you're talking about a person with $1300/mo in disability/SSI, 'free' medical and some savings (/settlement payments). She could live, certainly not lavishly, but at least as well as she did before, just not where she did before or how she did before.
Which is the crux of this entire story.