Tips on Finacing Your Parents Care

Tips on dealing with the finances for the sandwich generation:

Find out what your parents have in terms of savings, income, assets, insurance and legal protection. Be sure to review their bank and financial arrangements. Also look into their medical coverage. Find out about their Social Security and pension benefits.

• Gather or locate important documentation from them, such as their Social Security number, Medicare and Medicaid numbers, insurance information, a will, doctors names and numbers, medications, deed to their home, trusts, driver’s license number, birth certificate and any other relevant information.
• It’s essential that your mother or father have a DURABLE POWER OF ATTORNEY for both financial care and health care, and a LIVING WILL. The durable power of attorney allows your parents to give you (or another trusted person—it doesn’t have to be a lawyer) the right to make financial, legal and health decisions on their behalf. A living will lets your parents say how they want to be treated if they become terminally ill or unconscious. That durable power of attorney for health care will allow you to have a say in your aging parent’s health care if he or she is unable to make decisions.
• Review your own financial situation. Assess all of your assets, liquid and otherwise. Create a plan with a reputable financial planner. You must think about yourselfas well, starting today.
• Explore ways of converting current assets into cash. Do whatever you can to avoid cashing in on retirement accounts, 401k plans or CDs. A home equity loan may be a good option or a reverse mortgage for your parent’s home.
• If you are working, get disability insurance. Don’t count on Social Security disability; it’s restrictive and difficult to obtain, and it can take months to qualify and years to process claims.
• Make sure you have life insurance to help pay for your parent’s care if you die. Consider working with a broker instead of an agent who works for only one company. You may want to consider long-term care insurance for yourself, but it is complicated and costly. It’s mostly used by those who want to protect assets.
• Consider working with an elder law attorney, who focuses only on the legal needs of the elderly. Hire a certified elder law attorney if you can, as they must meet eligibility requirements, pass a test and have peer references.