By Cathleen Summers
You may be taking care of elderly parents now or looking at that possibility in the near future. According to a report from USA Today/ABC News/Gallup Poll, 41 percent of baby boomers are helping take care of elderly parents by providing personal help, financial assistance or both.
If financial planning and long term care planning have not been done previous to the need for care, the burden often falls on the caregiving family member. Decisions about how care will be paid for, who will be responsible for managing the estate as well as how the long term care will be given can cause stress and contention among family members.
It is best for parents and all family members to be involved in planning for future financial needs before the need for such care occurs. A loved one’s financial resources could change dramatically with the occurrence of a stroke, illness or onset of dementia. In order to plan financially for long term care, you need to know what the costs are now and what they will be in the future.
Every year MetLife does a survey of long term care costs. Its 2010 survey shows that the average daily rate for private nursing home care is $229, which is up from $219 in 2009. The assisted living monthly base rate rose to $3,293 in 2010 from $3131 in 2009. Home health aids average $21 an hour. Here in Massachusetts, we have found that the average private nursing home is costing our clients between $11,000 and $13,000 per month.
Planning financial needs can be very difficult, considering you do not know when long term care will be required or how long it will be needed. You can determine what will be needed in certain living situations. For example, staying in your home for care may require private home care assistance, travel accommodations to doctor appointments, help with shopping, meals, medical supplies and medication and possibly a 24-hour attendant.
Even if a family member is doing most of the care, eventually professional care may be required or a move to a nursing home may be necessary. When evaluating your present income and assets you need to consider the following:
•What are my care options?
•What type of long-term care can I afford?
•Do I have long term care insurance?
•Are there assets I can sell?
•If I stay at home, how will I pay for care?
•Do I have to sell the house to pay for other living arrangements?
•Are there other financing alternatives?
•Do I have life insurance or the means to pay for a funeral and burial?
•How will my spouse be provided for financially?
•Should I do Medicaid planning?
•Do I have all of the necessary legal documents in place?
Knowing your needs and financial resources is paramount before making any long term care decisions. Working together, both parents and family members can ease the stress and burden of elder care.
Cathleen H. Summers is a founding partner of Summers, Summers & Associates, P.C. an elder law, estate and life planning law firm located in Acton. She may be reached at www.summersatlaw.com or by calling 978-263-0006. Archives of articles from previous issues can be read at www.fiftyplusadvocate.com.
