Financial Plan for your aging parents? Even if it feels far off, you’ve got to start planning for your parents’ future now. Yes, it’s a difficult topic, o ne that can exhaust you emotionally and financially. However, it’s important to prepare for this stage of their lives. Making a financial plan to take care of your aging parents is the first step in securing their future. To make preparations for any eventuality, both you and your parents will have to dedicate time and energy into creating a plan that works. It will serve as a blueprint for any healthcare or legal decisions you will have to make on their behalf, and these tips will help you start planning.
Initiate the Conversation
Although it’s difficult, you will have to be the one to initiate the conversation. Sit your parent down and communicate your concerns honestly and clearly. This will make them start thinking about the ideas you propose. As parents get older they become very sensitive about their age and death. So, don’t push the topic. Knowing how to handle your aging parents through a Financial Plan can encourage them to share how they view their financial future. Evaluate the situation and make suggestions based on what you learn about the state of their financial affairs. Once you have talked things through, discuss this matter with other members of your family and your parents’ friends. Everyone has to be on the same page in case of any sudden unforeseen events in the future.
Simplify Their Finances
To do this, you will first need to determine their current financial state. Make a list of their monthly bills, and a separate one for any payments they might have missed. Sort out those obligations together, and show them how they can pay their bills on time using online banking. Set it up so they receive reminders for each payment. And since they don’t have to leave the house, they can make a payment on the spot. You might also want to check their savings accounts, like a 401(k) plan or individual retirement funds. This will help you get an estimate of how much they can spend and how much you might need to provide. Afterward, suggest changing their personal to a shared account, so you can keep track of their spending and if need be, manage their payments altogether.
Discuss Specialized Care
Taking care of your own family and your aging parent may be difficult to manage at the same time. Especially if it becomes a long-term commitment. That’s why you should consider researching facilities specializing in elderly care. Gradually introduce the topic, and highlight the healthcare benefits of having a full-time medical staff on call. Emphasize other benefits, as well. Most aged care centres provide access to swimming pools, quality diets, and social activities. All of this can improve the wellbeing of your parent. To adjust to this idea, allow your parent to research these places on their own. Then, set up a savings fund and start putting down a fixed monthly deposit. Even if they reject it, you can still invest that money in a vacation or treatment that might improve their wellbeing.
Take Care of Legal Matters
As your parents’ ability to take care of themselves deteriorates, you will need to protect them in legal matters as well. To prevent any legal obstacles the future might bring, you will need to gain legal permission to make important decisions on their behalf. One way to deal with this is to consider legal guardianship. A report by the National Council on Disability estimates that there are 1.3 million people currently under guardianship in America alone. In cases where parents have severe physical or mental health issues, this has proved to be a clear solution of transferring legal obligations onto family members. By becoming a guardian, you gain the power of attorney and are responsible for all matters of the court regarding your parent. You also gain legal right to oversee and access their financial account. Once you gain this right, you can easily use any available resources to cover medical expenses the care of your parent might demand.
We all get old eventually, it’s a natural part of life, and someday you will too. That’s why it’s important to take care of your parents. Remember to discuss your plans with them and other family members. They trust you to make good financial decisions on their behalf, so do right by them. Once you have made a financial plan, you will ultimately be able to share a financially sound future.