How to Fund Senior Living Expenses
Assisted Living, Memory Care and the related in home care costs are expensive and now even more so post Covid.
As you discuss your parents finances related to future care expenses, here are our top recommendations on how to assist them with future planning.
- Make sure they have a will and that you know where it is.
- Make sure they have executed Financial and Medical Power of Attorney paperwork designating a child or responsible person for making medical and financial decisions on their behalf.
- As them if they have life insurance and if so, with what firm-IE New York Life, Prudential, ect. and who their agent is.
- Ask them if they still have a mortgage or house payment
- Ask them if they own stocks, bond or have a brokerage account and if so where those funds are deposited or held…IE-Bank or Brokerage Firm such as Etrade, Merrily Lynch, ect.
- Ask them what bank they use for bill payment
- Ask them if they have long term care insurance-most healthcare expenses outside of the hospital are private pay and not covered by Medicaire and Medicaid is only for people with no assets to pay for such care.
- Ask them if they receive a pension or social security monthly income and if so how much that is.
Home that are fully paid for can be sold and in many states must be sold to pay for healthcare costs. Using the equity in the home such as thru a line of credit can be helpful but should be done prior to needing to access those funds in lieu of selling the home at a discounted rate.