As an adult child with elderly parents, the day may come when your parent has to move to a nursing home facility or similar long-term care environment. When that time comes you will want to help your parents protect as much of their assets as possible. There are several ways you can do this.
Handing Off Responsibilities
As hard as it may be for elderly parents to accept that their age has left them less able to manage their own finances, your parents will want to consider creating a revocable living trust or, at a minimum, financial powers of attorney that delegate their decision-making rights to someone else. Whether that person is a child, trusted advisor, or professional financial advisor, having a trust or financial power of attorney in place before it’s needed can be very important. The trustee or agent who has decision-making rights can better protect the elderly parent’s finances by ensuring that only the right people view sensitive information and that no one else has the ability to access or misuse funds.
Preparing for Long-Term-Care Costs
The price of long-term care is becoming incredibly expensive. In some instances it can cost $100,000 or more for a single year of long-term care. If an elderly parent doesn’t have long-term care insurance, you may want to investigate whether it’s an affordable option. You might also want to develop a Medi-Cal plan that will allow your parents to protect as much of their assets as possible while still using Medi-Cal to pay for the expenses. In some circumstances, there may also be available benefits from the VA for veterans and their surviving spouses.
The best way to get the answers and expert advice on these topics is to consult with an experienced and qualified elder law attorney.