Talking Money with Mom & Dad: Financial Planning for Senior Care
Talking to your parents about money can feel uncomfortable. For many families, finances are a private topic. Asking questions about income, insurance, or legal documents might feel intrusive. However, when it comes to financial planning for senior care, avoiding the conversation can lead to confusion, and additional stress during already difficult times.
A 2024 report from the U.S. Department of Health and Human Services shows that nearly 70 percent of adults over age 65 will need some form of long-term care. In California, the average cost of assisted living now exceeds $6,000 per month. With prices rising and aged care needs increasing, having an action plan is more important than ever.
At Senior Living Consultants, we often work with families who are making decisions under pressure. These moments are much harder when adult children are unaware of their parents’ financial situation or long-term care preferences. That is why starting the conversation early can make all the difference.
When it comes to financial planning for senior care, these are a few key topics to discuss with your aging parents.
Do you have your legal documents in order?
A tough ask, but find out from your parents if they have prepared the necessary legal documents. These should include:
- Advance Health Care Directive and a named healthcare power of attorney
- Financial Power of Attorney
- A living trust or will
- Military service records, birth and marriage certificates, and contact information for any attorneys, financial advisors, or insurance agents
Know where these documents are kept and review them together if possible.
How would you pay for long-term aged care?
Even if your parents are perfectly healthy now, it’s still important to know how they would cover future aged care needs. Ask if they have a long-term care insurance policy, if they plan to use home equity, or if they are eligible for VA Aid and Attendance benefits. Assisted living and memory care can range from $50,000 to $120,000 per year, so advance planning is essential.
What does your monthly income look like?
Discuss all sources of income such as Social Security, pensions, rental income, investment returns, and retirement accounts. If your parents qualify for veterans’ benefits, factor those in as well. Understanding income helps identify what type of senior care is both appropriate and financially manageable.
Can we organize your insurance and medical information?
Create a file with copies of Medicare or Medicaid cards, supplemental insurance, and driver’s licenses. Include a list of current doctors and prescribed medications. This information is critical if there is a sudden medical issue or a need to coordinate care quickly.
Are you keeping up with monthly bills and finances?
Difficulty managing money can be an early sign of memory loss. If a parent seems overwhelmed or misses payments, gently offer to assist with budgeting or bill paying. Respect their independence but be ready to step in with their permission and participation.
Financial Planning for Senior Care Starts with a Conversation
Starting conversations about financial planning for senior care does not have to be difficult. These discussions build trust, reduce uncertainty, and prepare your family for the future. If you need guidance, Senior Living Consultants is here to help you explore the best care options based on your loved one’s needs and budget.
Let us help you plan ahead with confidence.
Disclaimer
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