A recent survey by TD Ameritrade found that 13% of American adults are financially supporting their parents. It appears to be a growing issue. According to their survey, 19% of millennials are helping pay their parents’ bills, compared to 13% of Generation Xers and 8% of baby boomers. How do you help your parents through their retirement end of their lives, while still preparing for your own?
Their suggestion given was to purchase long-term care insurance for them, and for you. This may not be affordable for many adult children of any generation. The problem, however, is real and needs to be discussed and options sought sooner rather than later when funds may be already gone.
Purchasing LTC insurance for parents may be less expensive than attempting to pay for their care, but it will be a burden for many and often times not available anymore due to their health. Like the airlines say, put on your oxygen mask before helping others. Do you have your LTC insurance in place yet?
There are other strategies that can assist you in helping your parents. Many of them involve nothing more than advice and being aware of rules and restrictions that are often overlooked.
You don’t know what you don’t know.
By discussing the situation and learning how to best help them without causing future difficulties, you might find that it is not necessary for you to simply give them money. Some assets can be protected, if you know how to do this. We help families do this every day. Other times we prevent problems – many people are not aware that if parents pay a caregiver directly, without a simple employment contract signed and notarized first, all payments will be considered gifts by Medicaid thus disqualifying you from that program.
Family meetings are our specialty. Bring a list of questions and we can help you navigate through the rules that you want to learn before problems are created.
Whatever your situation regarding long-term care, there are strategies you can take advantage of that save you and your parents money. So call TheLongTermCareGuy.com at (920) 884-3030 and schedule a time to learn what you need to know.