When we're young, it's hard to imagine our parents aging into senior citizens. We rely on them for so much; the notion that we could someday be responsible for ensuring their financial security seems abstract and hard to grasp.
The truth is that those days may arrive faster than any of us expect. If we don’t work with our parents to prepare for this uncertain transition, we could expose the entire family to unnecessary financial, legal and emotional risks.
This week, we're going to explore some of the most important financial, legal and medical issues associated with caring for aging parents.
First, we'll talk about the importance of an open line of communication with older parents about these important issues. Depending on your family, your parents may have already addressed these issues or they may react defensively to the very mention of them. Either way, open and honest communication is critical – by speaking honestly about your parents’ financial situation and reviewing the status of health insurance, bank and retirement accounts and estate planning documents, you can work to identify potential blind spots before it’s too late.
Next, we'll explore financial challenges commonly experienced by the elderly. We’ll learn how to audit income and expenses, find additional sources of income, and discuss warning signs that a parent's finances have veered off-track. By recognizing these often-subtle indications, children can know when to intervene or seek help from outside the family.
We'll also take a look at the value of smart estate planning and the need for a living will. Many Americans have no will or advanced medical directives in place, documents that are important no matter your age or health. If your parents don’t clearly state their preferences about end of life medical care and estate disposition through legal documentation, their wishes may not be followed.
Finally, smart preparation is the most effective means of dealing with the financial, medical and emotional implications of aging parents. To that end, we'll outline some of the most common surprises you'll want to avoid, like the extraordinarily expensive cost of long-term care.
For some, caring for older parents can be an enormous challenge. By taking the time to explore the some highly relevant issues, you can help to ensure your parents remain as financially secure as possible.
Given the sacrifices most parents make for their children, they deserve no less.
