Aging Parents: Considering Financial Decisions
More and more Americans are facing the realities of caring for aging parents. Physical care of a parent is already a daunting task for adult children navigating their own households and responsibilities. But, there are also financial decisions that need to be considered. That’s where the professionals at Broussard Poché, LLP can help. Let’s look at a few strategies adult children can use when faced with a parent who may need financial help.
Talking with Family
The emotional toll of caring for aging parents can be difficult on the entire family unit. Be sure to discuss financial matters before the care of parents becomes a major issue. This means, sitting down with your parents and siblings or any other relatives you feel have a stake in the conversation. Create a plan among the family members and discuss things like:
- parent’s monthly expenses
- do they need help meeting current obligations
- create a documentation system to manage bills
- discuss any financial situations that could arise (illness, surgery)
- create a plan to deal with new expenses
Financial Responsibility
Many times, as a parent moves into a nursing home, the facility may ask the child to sign forms about financial responsibility. Discuss other options with the facility and avoid signing forms regarding financial responsibility. Ask if your parents are eligible for programs like Medicare or Medicaid.
Tax Implications
If you are in a position to help a parent financially, there may be tax implications you should know about. Contacting your financial planner would be a great way to get a handle on the situation, especially if you take over more than half of your parent’s financial burdens. In some cases, you may be able to declare your parents as a dependent or deduct certain expenses related to their care.
The team at Broussard Poché, LLC understands the emotional and financial stakes of caring for an aging parent. If you have any questions or need any guidance, contact us or your financial planner.