People who want to help aging parents can use common sense and a little bit of planning to make a difficult process a bit easier. The right steps, in fact, can also open important options to stretch tight. There are several steps you can take to do the right thing and establish a sure foundation for seniors.
Talk it out. Start with a frank, heart-to-heart conversation between seniors and caregivers — sons, daughters, or other relatives. “At the center is good family communication,†says Gail Myers, a spokesperson for the New York State Office for the Aging, “The topics may not be the most comforting, but talking is the only way to find out what older parents want and what you can do.”
Make a list. Next, you’ll need to know just what funds and other financial resources you have at your disposal. That means taking an inventory of your parents’ assets and combing through possessions such as their home, retirement account savings, Social Security and pension benefits. That’s never been an easy icebreaker with parents, no matter what their age, so you might turn to Websites such as the National Institutes of Health to provide a checklist of items to cover. The process doesn’t necessarily stop there. You and your siblings should also be frank about what you can provide.
Consult with an expert. It is also a good idea to contact a local office of aging — an agency supervised by most counties and states. An appointment can be set up to have a staff member or social worker visit elderly parents to assess their needs. Another alternative: Many faith-based organizations have family services that will send out an elder care expert who can visit parents and draw up a list of needs that will make their lives safe and comfortable.
You may find the insight enlightening. Aging office experts have an eye for what elderly parents need to function. In some instances, seniors need to rearrange their living space to make movement around a house or apartment easier. Sometimes an occasional visit from a local volunteer to help with cleaning, preparing meals or running errands makes a big difference day to day. Additionally, case workers are well versed in government funding sources and a variety of breaks that are extended to the elderly, whether they come from volunteer groups or the Veterans’ Administration. Finally, case workers can be an invaluable source of leads on agencies or firms that employ home care assistants as well.
Related Article: Part 1: How Creative Planning Can Help Beat Costs of Elder Care
Get the documents you’ll need. No one wants to imagine dire circumstances. Still, planning for the worst is sometimes the best preparation going. That holds true for elder care as well. If you plan to care for elderly parents, you should have
several documents set up as contingencies, such as a durable power of attorney, a revocable trust covering your parents’ assets and a privacy authorization that allows you to speak with doctors about your parents’ health. In some cases, they will help you make the best decisions for parents who may be ill or incapacitated. Under other circumstances, they’ll make it possible for you to handle your parents’ financial affairs in order to ensure that the seniors you care for are comfortable.A power of attorney on its own appoints you or someone your parents select to manage affairs or make decisions concerning property, financial accounts, some specific assets or even a healthcare issue. A durable power of attorney is a document that has to be established while seniors are of sound mind and can remain in effect even if a parent is somehow incapacitated. A revocable trust places parents’ property under the supervision of a designated trustee who can make financial decisions under circumstances that can be outlined in the trust. Finally, because of healthcare privacy laws under the HIPAA or Health Insurance Portability and Accountability Act, a care provider should have parents’ sign an authorization that will allow them to stay in know about important medical issues.
Hermann Eisele, a St. Louis estate planning attorney with the law firm Weiss & Associates P.C., recommends that you see a lawyer who specializes in elder care issues.Â
“I’ve seen people fill out downloaded Internet documents, or have forms filled out at a service center that just do not have the proper terms and language,†says Eisele. “Cutting corners that way can create problems down the road.â€Â The attorney also says that a good elder care lawyer will help elderly parent screen just what people they designate to have certain very critical responsibilities.Know how to make finances last. Elder care costs can mount in a hurry. “Many people are under the mistaken impression that Medicare will foot the bill; It will, to a very limited degree, for care as a result of a medical procedure, but if you’re depending on it for the long-haul, you may be in for an unpleasant surprise,†Myers says.
A talk with a financial planner can clear up what funds are available and how you and your parents can stretch them out. You’ll need to know how much social security and retirement account funds are available, what are the best and most tax efficient ways to draw on accounts, and how to ensure that money earmarked for care services is not only liquid, but earns the most return when not in use. For parents who have paid their home off, options such as a reverse mortgage can help tap into funding possibilities embedded in a very valuable asset. Finally, a good planner will know tax breaks offered to seniors for care devices.
See the process as a learning lesson. Chalk this up as life’s message to you. Heed the process of helping an elderly parent as your own wake-up call. Myers says considering long-term care insurance is one way to make sure that you don’t disrupt your children’s lives in old age. Long-term care insurance can be expensive, but the cost can be affordable if you open a policy in your 30s or 40s. Your state department of insurance offers a listing of companies that sell policies. You can get a listing at the ConsumerAction.gov.
Related Article: Part 1: How Creative Planning Can Help Beat Costs of Elder Care
WEALTH FOR LIFE PRINCIPLES
1. I Will Live Within My Means
2. I Will Maximize My Income Potential Through Education and Training
3. I Will Effectively Manage My Budget, Credit, Debt, and Tax Obligations
4. I Will Save At Least 10% of My Income
5. I Will Use Homeownership as a Foundation For Building Wealth
6. I Will Devise An Investment Plan For My Retirement Needs And Childrens’ Education
7. I Will Ensure That My Entire Family Adheres To Sensible Money Management Principles
8. I Will Support the Creation and Growth of Minority-Owned Businesses
9. I Will Guarantee My Wealth Is Passed On To Future Generations Through Proper Insurance And Estate Planning
10. I Will Strengthen My Community Through Philanthropy