Money Matters: Financial Considerations When Caring for a Parent

Q: My father is getting on in age, and I believe that he might have to live with us in the near future. We’re not sure what to do or how to plan. What do we need to consider?

A: Caring for a parent can be financially and emotionally challenging. But with some pre-planning, those challenges can be met intelligently. Plan ahead and have a meaningful conversation with your father before the situation occurs.

Caring for your father will be easier if you take advantage of these strategies:

1. Have your father give you Power of Attorney: This will be important if your father is ever unable to make sound decisions. Having power of attorney gives you the power to act as an agent for him. This typically includes all activities related to finances and other business concerns.

• Even if your father is capable now, that might not be true in the future. It’s easier to plan ahead and make arrangements now.

2. Know your father’s financial situation before the time arrives. It’s much easier to plan when you fully understand the situation. Your father might have far more or less wealth than you realize. Ensure you understand his social security status, too.

• This also includes insurance information. Does your father have disability insurance? Health insurance? Where does he keep his life insurance policies?

3. Know your father’s wishes. It’s easy to assume what someone else wants, but we’re all surprised from time to time. Ask him what he wants when it comes to his care. With this information, you can make a plan that takes the financial situation into account.

    

4. Look for community resources. There are many local resources that assist seniors. Your father’s church might provide a ride to and from services. Other community services will provide a ride to the grocery store once a week. You might be able to have a ramp built at your home.

• It’s possible that a social worker can visit once a month and help with additional services. Medical services might be available as well.

• Your father will feel more independent. These services can also free up your time and save money.

No one likes to think about their parents' aging, but it eventually happens to everyone. Take a few preliminary steps now to ease the financial challenges that are likely to occur later. With adequate preparation, it could be an enjoyable experience for everyone involved.

Now go and grow! 

Michelle R Russell

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