Taking Care of an Elder Parent?
Planning Tips for Long-Term Care
As our population ages, more and more baby boomers are finding themselves in the position of having to take care of their elderly parents. If you find yourself in this situation, there are some things you need to know about long-term care planning and estate planning.
Long-Term Care Planning: What it is
If your elderly parent needs help with activities of daily living such as bathing, dressing, eating, or using the restroom, then they will likely need long-term care. Long-term care can be provided in a variety of settings, including at home, in an assisted living facility, or in a nursing home.
Elderly parents sometimes resist the idea of needing long-term care, but it’s important to have a plan in place in case they do need it. You should start by talking to your parent about their preferences for long-term care. Do they want to stay at home? If so, what kind of assistance do they need? Are they open to the idea of moving to an assisted living facility or nursing home? If so, which one would they prefer?
It’s also important to talk about how you will pay for long-term care. Long-term care is very expensive, and most health insurance plans don’t cover it. There are several options for financing long-term care, including long-term care insurance or Medicaid to name a couple. You’ll need to explore all of these options to find the one that makes the most sense for your family.
Options for Long-Term Care Planning
Paying Out-of-Pocket
One of the biggest concerns for Americans as they age is how to pay for long-term care. The costs of long-term care can be significant and are often not covered by health insurance or Medicare. There are a few options available to help you plan and pay for long-term care, which we will discuss below.
Saving for the Expenses
One option for paying for long-term care is to simply save upfor the expenses. This can be done by setting aside money each month into a savings account, or investing in a long-term care policy. The downside to this approach is that it can take years to save up enough money to cover the costsof long-term care, and there is no guarantee that you will have enough when the time comes.
Long-Term Care Insurance
Another option for paying for long-term care is to purchase a long-term care insurance policy. Long-term care insurance policies are designed to cover the costs of long-term care, up to a certain limit. The benefit of this approach is that it can help to protect your assets in the event that you need long-term care. The downside is that long-term care insurance policies can be expensive, and they may not cover all of the costs of long-term care.
If you are considering purchasing a long-term care insurance policy, it is important to shop around and compare policies. Be sure to read the fine print carefully, and make sure that you understand what the policy covers and does not cover. Long-term care insurance often is an expensive way to save. It is also important to keep in mind that most long-term care insurance policies have age limits, so if you are older when you purchase the policy, it may not cover you.
Qualifying for Medicaid
If you are unable to pay for long-term care out of pocket, or if you do not have long-term care insurance, you may be able to qualify for Medicaid. Medicaid is a government program that provides health coverage for low-income Americans. To qualify for Medicaid, you must meet certain income and asset limits. If you qualify for Medicaid, you may be able to get help paying for long-term care.
To qualify for Medicaid, you must have a limited income and few assets. The income limit varies by state, but is typically around $2,000 per month. The asset limit is usually around $2,000 for an individual. This means that if you have more than $2,000 in assets, you likely will not be able to qualify for Medicaid. While there are some assets that are not counted when determining if you qualify for Medicaid, most likely if you have income or assets, you will not qualify initially. However, there are strategies that an attorney who specializes in elder law will know about. We know about them too. They consist of elder law strategies that help you protect your assets while still qualifying for Medicaid.
Estate Planning
Another important thing to think about when taking care of an elderly parent is estate planning. Estate planning is the process of organizing your finances and property so that they can be distributed according to your wishes after you die. It’s important to have an estate plan so that your loved ones don’t have to make difficult decisions about your finances and property
during a time of grief.
There are several things you’ll need to think about when creating an estate plan. First, you’ll need to choose someone who will be responsible for carrying out your wishes. This person is called a personal representative or executor. You’ll also need to decide how you want your assets to be divided among your heirs. Finally, you’ll need to create documents that detail your wishes so that there is no confusion after you’re gone.
Recap
Creating a long-term care plan and estate plan is essential if you’re taking care of an elderly parent. These plans will ensure that your parent is taken care of according to their wishes and that
their finances and property are handled according to your wishes after they pass away.
Take the next step!
Do you need help planning for long-term care? Do you have an elder parent that you care for? Then contact us at New Century Investments and we are happy to meet with you. We will listen to your situation and provide you with a roadmap for reaching success.
Matt Ward, CFP®
Email: Matt.Ward@newcenturyinvestments.com
Phone: 817-238-6300
