Senior Finances: a Difficult but Vital Discussion
Millions of people in America are struggling with the question of whether their senior parents are able to cover the cost for long-term care. Senior finances can be a sensitive subject matter, and when it’s time to start giving thought to long-term care needs, having an honest and open discussion about how your parents will cover the cost for aging care services is essential.
To that end, our Berkeley home care team has gathered together the questions below to help you get started:
- What are your parents’ assets? A good place to start is to determine approximately how much funding your parents have available in cash, investments, and Social Security. This sets a basis for covering for long term care expenditures.
- Do your parents anticipate the need for financial assistance? People are living longer than ever before, which means that more people are outliving the resources they’ve designated for retirement. Ask your parents if they have sufficient funds to sustain their needs for the remainder of their lives. If not, how much support will be necessary?
- Do your parents have insurance? Determine if your parents possess a long-term care insurance policy in addition to life insurance, and ensure you have a good understanding of their policies.
- Can you access their passwords and account numbers? Request account and password details, and keep a copy of this information, along with contact information for your parents’ financial adviser and attorney. This will make it an easier process to deal with affairs when the need occurs.
- Do your parents have a power of attorney? Recommend to your parents that they designate and finalize paperwork for a power of attorney so they are confident that there is a dependable, trustworthy person to make decisions on their behalf in the case of a medical emergency.
Preparing ahead for long-term care is critical, and best done while your parents are independent and thriving. Understanding their finances now will help you better prepare for their care in the future.
At Hillendale Home Care, a provider of in home care in Berkeley and surrounding areas, we understand that conversations about aging care and finances can be challenging, and we are always here to help. Contact our Berkeley home care experts online or at 925-933-8181 to learn more, and visit our Service Area page to see all of the areas we serve.