In our practice, it is common for adult children to contact our firm to discuss ways to assist their parents with the aging process.  As parents age, it’s common for their adult children or loved ones to become concerned about their financial situation and long-term care.

If adult children or other family members will be involved in their loved one’s long-term care, it is essential to have a financial plan in place in order to avoid unexpected or mounting expenses that can deplete their own retirement savings. Furthermore, the adult children or other family members should know their loved one’s wishes for end-of-life care, have a power of attorney in place and make sure there are adequate resources to pay for their living expenses, long-term care, and final expenses.

If you are unsure where to start, the following checklist may help with getting things organized and in order:

Finances

  • Make a list of all accounts and where they are held
  • Consolidate accounts where possible
  • Ensure that the proper names and permissions are on each account
  • Streamline bill paying by setting up automatic payments where possible, etc.
  • Obtain contact information for any financial advisors and schedule a meeting, if necessary
  • Review Social Security benefits
  • Update beneficiary designations

Investments

  • What investments do they have?
  • Where is the original documentation for all investments?
  • What are the amounts of each investment?

Insurance Policies

  • Make a list of all insurance policies and locate copies of each
    • Life Insurance Policies
    • Health Insurance Policies
    • Long-term care policies
  • Schedule a meeting with your parent or loved one’s insurance advisor to review policies or to set up a long-term care insurance policy if there isn’t one already
  • Review and update health insurance coverage and Medicaid planning strategies

Legal Documents

  • Is there a durable and up-to-date power of attorney for finances and long-term care planning?
  • Is there a durable and up-to-date advance directive/healthcare proxy in place that includes wishes for life-prolonging care?
  • Is there a will or estate plan in place and does it need updating to reflect current wishes regarding executors, beneficiaries, etc.?

Living Arrangements

  • What is the current living/housing situation and is it working?
  • What are the plans for illness, disability or death of a spouse/partner?
  • Is there money available to pay for those contingencies (ie: savings or long-term care insurance)?

Healthcare

  • Make a list of all doctors and medications currently prescribed
  • Make a list of wishes for various medical scenarios
  • Make sure health insurance and supplemental policies support those wishes (ie: does the nearby hospital accept the current insurance, etc.)
  • Make a copy of healthcare cards (these are important when applying for benefits and going to the doctor)

Matters of aging and long-term care planning are emotional and challenging for both the aging parent or loved one and their relatives.  However, it’s important to make sure things are in order to ensure that these matters are handled as smoothly and effectively as possible. If you or someone you know would like to discuss long term care planning, please contact our firm.