Caring for Finances of Elderly and Aging Parents
More than 50 million Americans provide care for a chronically ill, disabled or aged family member or friend during any given year, and that number is growing, according to the National Family Caregivers Association. It is not uncommon for adult children and other family members to offer help when an aging loved one needs assistance, but what are the financial implications of this? A blog article posted by Dale at Transition Aging Parents highlighted the efforts of a new Key Bank campaign to raise awareness (in adult children) of the need to balance the financial situation of an aging parent without jeopardizing their own. The article stresses the need to plan ahead - something many often overlook, or simply wish not to address.
Planning is important as we age, in all aspects of life. We all want to remain in control and continue having our independence as we age, but being realistic about what the future may hold, and even documenting you or your loved one's wishes in writing, can be important for aging adults to have some control over their future even when they can no longer speak for themselves. In accordance with this sentiment, the campaign targets five things
- Having a frank discussion about finances with your parent (so there's no hard feeling or suspicion at a later date)
- Getting organized
- Preparing for market ups and downs
- Making sure you understand and know where to find the paperwork your parents have (insurance policies, long term care insurance, wills)
- Knowing about sources of financial help (such as reverse mortgages or unclaimed veteran's)
And offers the following tips
- Be a signer on your parent's checking account and monitor their accounts online. (You'll be able to spot scams, fraud and first signs of dementia if you do this.) If you're not a signer on the accounts and your parent becomes incapacitated, you will need a court order to gain access.
- Be sure you understand what the long term care insurance covers and what it does not.
- Consider seeking out the services of an attorney who specializes in Eldercare law. They can help create/manage your parent's trust in their best interest. Also, know that if your parent moves from one state to another, you should have legal documents reviewed to ensure they meet current state laws.