It’s not easy to think about our parents aging. It forces us to confront many uncomfortable topics, like our parents’ finances, our own employment situations and finances, and mortality in general.
However, thinking ahead and planning for these circumstances can make the entire situation more bearable. Here are smart ways to start preparing for your role as caretaker for your aging parents.
The cost of aging in America is overwhelming. When it’s your parent in need, you’re likely to take on at least some of the financial responsibility. Start planning for that now by setting aside manageable chunks of money to cover future expenses using a tool like Goal Based Savings .
It can be difficult to have conversations with your parents about aging or the end of life, but it’s better to have those conversations earlier while they’re healthy.
It will be important for you to know:
Accessing Medicare or Medicaid can be incredibly difficult. There are often asset tests that require you to sell off your property before you can qualify for state aid.
If your parent is the caretaker for a disabled individual age 65 or under with a supplemental needs trust (SNT), you can shelter their assets as the caretaker in the trust. That way, they can keep their home or their investments and even use those assets to pay for everyday expenses while still qualifying for the healthcare programs they need.
This is an advanced strategy and requires the assistance of an elder care attorney with extensive experience in disability finances. But if it applies to your parents, it’s an avenue worth exploring.
One of the biggest concerns when your parents need care is who will provide it. There’s sometimes a gap between when your parent’s health starts needing greater attention and when more advanced care begins. For many people, the adult child ends up being the person that fills in the gap.
Since you want to be there for your parents, it may require reducing your hours at work or leaving your job altogether. If you find yourself in this situation, check with your state’s Medicaid or Medicare programming. Some states let family members be paid as the primary caretaker. It doesn’t apply to all circumstances, and the pay is nominal.
However, every extra penny counts if you’re having trouble bringing in a paycheck.
The finances surrounding end-of-life care are complex and overwhelming, especially when you factor in that this can be such an emotional time for the entire family. Fortunately, there are people to help guide you along the way.
Payactiv members have access to free financial counseling. Utilizing this resource can help you get connected with the professionals you’ll need to ensure the journey is as smooth as possible.
Caring for aging parents can be emotional and stressful, but the financial aspect of it doesn’t have to be. Using Payactiv can help simplify the process with helpful savings tools like Goal Based Savings as well as counseling, allowing you to focus more on being present for your parents and helping them with their day-to-day needs.
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