Financial Planning For Long Term Care

By Vikki Kalitsi

You may be taking care of elderly parents now or looking at that possibility in the near future. According to a report, 41% of baby boomers are helping take care of elderly parents by providing personal help or financial assistance or both.

If financial planning and long term care planning have not been done previous to the need for care, the burden falls on the caregiving family member. Decisions about how care will be paid for, who will be responsible for managing the estate as well as how the long term care will be given can cause stress and contention among family members.

It is best for parents and all family members to be involved in planning for future financial needs. The financial resources being used today could change drastically with the occurrence of a stroke, illness or onset of dementia. In order to plan financially for long term care, you need to know what the costs are now and what they will be in the future.

Planning financial needs can be very difficult, considering you do not know when long term care will be required or how long it will be needed. You can determine what will be needed in certain living situations. Staying in your home for care will require professional home care assistance, travel accommodations to doctor appointments, help with shopping, meals, medical supplies and medication and possibly a 24-hour attendant. Even if a family member is doing most of the care, eventually professional care will be required or a move to a nursing home facility will be necessary.

When evaluating your present income and assets consider how they would work for future needs.

What are my care options?

What type of long-term care can I afford?

Do I have long term care insurance?

Are there assets I can sell?

If I stay at home how will I pay for care?

Do I have to sell the house to pay for other living arrangements?

Are there other financing alternatives?

Do I have life Insurance or the means to pay for a funeral and burial?

Will my spouse be cared for financially?

Should I do Medicaid planning?

Do I have the legal documents that may be needed?

Knowing your needs and financial resources is paramount before making any long term care decisions. Working together, both parents and family members can ease the stress and burden of elder care needs.