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At the age of 26, Terri experienced a still unexplained collapse while at home alone with Michael Schiavo, who subsequently became her guardian. After a short period of time, Michael lost interest in caring for his brain injured, but otherwise healthy, young wife.
Schafer died of cancer in her Beverly Hills home, at the age of 90. She was cremated; her ashes were scattered into the Pacific Ocean, off San Pedro's Point Fermin Light, in California. Upon her death, she left over $1.5 million to the Lillian Booth Actors Home and in 1993, a wing was named in her honor.