Securing Your Parents’ Future: A Comprehensive Guide to Family Planning
Securing Your Parents’ Future: A Comprehensive Guide to Family Planning
We often view our parents as invincible, especially since they belong to a generation that continues to redefine longevity. With many likely to see their 80th birthday, turning 65 is often considered just another milestone. However, regardless of their current health and vitality, it’s crucial to have conversations about their financial future and long-term care plans.
The Importance of Early Planning
Discussing these topics early allows your parents to maintain control over their lives and gives the entire family time to research options and costs calmly. Elinor Ginzler, author of Caring for Your Parents: The Complete Family Guide, emphasizes that waiting until a crisis occurs can lead to physical, emotional, and financial exhaustion.
Types of Living Situations
Planned Communities
Also known as active adult communities, these are residential developments rich in amenities for independent individuals with common interests. For example, golf enthusiasts can live near a course and enjoy the company of like-minded neighbors. However, Medicare does not cover the cost of planned communities as they are considered a residential choice, not a medical necessity. Be sure to ask about any age and visitor restrictions.
Continuing Care Retirement Facilities
These facilities offer a continuum of care, including independent living, assisted living, and nursing home care, often all on one campus. They can vary widely in size, quality, cost, and services offered. It’s essential to tour several facilities before making a decision.
Independent Living
Independent living is suitable for those who can live on their own but prefer not to maintain a home. These facilities often provide activities, trips, and group meals.
Assisted Living
Assisted living facilities are for individuals who need help with daily activities such as cooking, bathing, and dressing. While skilled nurses and hospice care may be available, Medicare does not cover the costs, which average nearly $36,000 a year. Some states may cover fees through Medicaid if income guidelines are met.
Nursing Homes
Nursing homes are the most widespread option for physically or mentally disabled adults requiring medical attention and comprehensive services. Medicare covers only short-term stays, but Medicaid may pay for extended care in some states if eligibility criteria are met.
Long-term Care Insurance
Securing long-term care insurance for individuals in their 70s or 80s can be challenging. The average premium for adults over 65 is approximately $2,862 a month, while for those under 65, it’s around $1,337 a month. It’s crucial to ask for inflation protection and to understand what is and isn’t covered. Consulting a lawyer to review the policy is highly recommended.
Wills and Living Wills
Your parents need a will or trust to ensure their assets are distributed according to their wishes. While you can assist in composing these documents, hiring a lawyer to ensure they adhere to state laws is essential. Keep the will or trust updated to accommodate changes in assets or family members.
A living will is a document that instructs doctors on how to proceed if a patient becomes vegetative or terminally ill. Knowing your parents’ preferences regarding medical interventions can eliminate conflicts during difficult times.
Addressing these matters while your parents are healthy is much easier than playing catch-up after an illness. Putting a plan in place ensures their needs are met and provides peace of mind for the entire family.
For more information, you can visit Medicare’s official website.
