Caring for Your Parents | Finances: Start Planning Now

Caring for Your Parents

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Aging comes with increased demands and responsibilities for caregivers, children, spouses and family members. A lot of decisions become eminent and necessary, and as well there is an increased financial burden. However, with adequate and proper planning, you will do just fine in managing the responsibilities that comes with aging parents or even for yourself if you’re already in your 60s. The earlier you begin now to make plans and adjustments, the easier it is for you to manage the responsibilities of an aged parent.

Financial Planning

A financial plan is key in this situation, however, to have a good financial plan, you will need to understand how your money flows in and out. By calculating your regular, maybe monthly income and your expenditure you will be able to ascertain your flow of cash. Again, you also need to put into consideration your current assets after subtracting your liabilities.

Hence, a good financial plan should consist of the following: a budgeted income and expenditure, a short term financial expenditure plan for assets for a period of may be 3 to 5 years, reassessment of health insurance, a summary of your assets and liabilities and the choice of person to manage your finances and make health decisions on your behalf.

To begin the planning, gather together all vital financial documents, evaluate beneficiaries named for any trust or contracts and the retirement and savings account s. All these you should with a formal permission from your aged parents or loved ones to discuss and plan their finances.

Financial Analysis

A good financial analysis of income, mortgage, taxes etc will ensure a good financial plan. Income to be analyzed include; Present earnings such as his or her pension or other retirement benefits, investments such as bonds, stocks and annuities. Others like social security income for aged persons, blind, disabled etc is also to be analyzed.

Expenditures such as payment of mortgage, estate taxes, electricity bills, telephone bills, bills for commondities and water supply, medical bills outside of insurance like visiting the dentist or the ophthalmologist should also be analyzed.

Likewise insurance bonuses such as food, toiletries, medications, clothing and other personal objects should also be looked into. Maintaining the car, the gas and other expenditure for transportation should not be over looked. Importantly, a review of what the insurance covers such as prescription drugs, health-care services, long-time care, medicare, medicaid, death benefits from life insurance and benefits for old military service men should be put into consideration.

Assets like landed properties, investments including mutual funds, government bonds, stocks, ETFs, cash, delayed annuities, the value of life insurance should be appraised. And finally, liabilities such as mortgage, loans, balance of credit card, and every other payments should be evaluated.

Eldercare Services

Eligibility for the Eldercare services includes; age of the person, his or her assets, if he or she is disabled, employed or not, expenditures, insurance, health condition, large or small household, current income and eligibility status as an ex military personnel. It is necessary that you engage the services of a counselor to help you determine if your aged parent or loved one is eligible or not.

Medicare do not cover for most long-time health care needs of the elderly persons as a result many families have suffered financial liquidation. Meanwhile, long-time health care insurance can help save excessive cost and reduce expenses. It can either be at home or in a long-time care facility.

Benefits Of Eldercare Services

The benefits of Eldercare services include; Time saving: taking care of aged persons needs a lot of time and attention which most times is not easy for their children or caregivers to meet up with such responsibility alongside their own busy schedule. So with the help of a professional caregiver, your aged parent get full attention and care while saving your own time.

Professional care: your parents get to enjoy professional care. As experts in this field, these profesional caregivers know how better to meet the needs of your aged parents satisfactorily. Hence, you can always count on them and entrust your old loved ones in their care.

Lifestyle modification: a professional caregiver assist the elderly person to adjust his or her lifestyle based on his or her situation without difficulty and this enhances their quality of life. Social and emotional stability: due to enhanced care, attention, communication and relationship with a professional caregiver who is always available to meet the needs for the elderly person, the aged persons are better stable.

DISCLAIMER: The information provided in this blog is for informational purposes only and should not be considered legal advice. The content of this blog may not reflect the most current legal developments. No attorney-client relationship is formed by reading this blog or contacting Morgan Legal Group.

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