Make the best senior care decision

“When you start asking people to talk about their financial accounts, you have to work your way into it,” says Michelle Ash, a certified financial planner in Jacksonville, Florida, and chartered advisor in senior living.

Follow these suggestions from Ash to have productive conversations about your parents’ financial resources and wishes as they age.

1. Consider your parents’ point of view.

“The oldest generations tend to be very, very private about finances,” Ash says. “Baby boomers are more open, generally speaking.”

Acknowledge that your parents’ generational and cultural viewpoints on discussing money could be different from yours. Being aware of their perspective is a good first step.

2. Think about your family’s parent-child dynamics.

If you have siblings, consider whether one of you might be better suited to talk to your parents about their finances. Sometimes, parents are more comfortable speaking to the eldest child or to a child that they may perceive to be better at financial management.

3. Start with why you’re bringing it up.

Make your intentions clear. Let your parents know you want to talk about finances because you’re worried about their health or you want to plan for the future.

“You can say: ‘My hope is we won’t need to use this information for a long time, but if you need help as you age, we want to be able to respect your wishes,’” Ash explains.

Having a financial discussion that includes your loved ones’ financial accounts, documents, goals and end-of-life wishes is important. It will help you make decisions with peace of mind and will also help protect your loved ones’ assets.

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4. Find out what’s most important to your aging parents.

“Most people are far more interested to speak about what’s important to them and how they’re going to be cared for first,” Ash says.

Ask about their experiences with caring for their own aging parents. Do they envision a similar situation?

This is the time to discuss your aging parents’ health and family health history. If they eventually need help managing activities of daily living or their health needs, what form ideally would that help take? Have they had experiences with senior living communities? What are their impressions?

5. Look into costs associated with their plans.

Once you know your parents’ long-term wishes, research elder care costs. If they want to remain in their homes, look at home care costs together. If assisted living is an option, check out assisted living costs in their state. Are they experiencing some memory loss? If so, you’ll want to look at memory care costs with your parents.

6. Discuss financial resources to support their wishes.

Now that you know the type of and cost of care your parents want as they age, it’s time to look into what financial resources they have.

“If you’ve started by talking about what’s important, it may be relatively easy to transition into asking your parents about their finances,” Ash notes.

You may want to ask these questions:

• Do you have a financial advisor? Many financial advisors ask their clients to fill out a form that authorizes them to share information, which may also include the circumstances where they want financial information shared and with whom.
• Do you have retirement or investment accounts? Do you have a pension?
• Do you have life or long-term care insurance?
• Where are your important legal documents?
• Do you have a will?
• Do you have a durable power of attorney?

7. Research little-known ways to pay for senior living.

Investigating ways to offset elder care costs before they’re needed could offer peace of mind to aging parents and their families. If your parent is a veteran, understand VA benefits for long-term care. If they own their home, a reverse mortgage may provide needed funds. Sometimes, life insurance can be used to free up cash for long-term care.

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8. Find out if your parents expect you to contribute financially.

Some people’s goal is to spend their last dollar on their deathbed, Ash says. If they have unforeseen long-term care expenses, they may reason they’ll go on Medicaid or move in with their children. But, the vast majority want to provide for long-term care costs if they can, and they don’t want to be a burden on family.

If that’s your parents’ expectation, however, finding out now can help you prepare.

“Of 300 client families, I’ve only had one say they want to go with ‘the Medicaid plan’ or move in with their kids,” Ash notes.

Not making financial plans for long-term care needs is the most common mistake people make, Ash explains.

“Everyone needs to have a strategy,” she says. “We’re all aging — scientists haven’t yet figured out a way for us to live forever. Many, many people need help. Not everyone needs a solution that is top of the line, but it’s far better to have a partial solution than no solution.”

Some elderly parents may have thought about their future and finances a lot. Others may be in denial that they need to consider their future and finances at all. You won’t know unless you begin discussing what’s important to your parents, along with the financial assets available to help them.