How to prepare financially for caring for aging parents

(InvestigateTV) — Nearly 63 million Americans are now caring for an aging loved one or a family member with a disability or illness, according to a recent AARP study. That marks a significant increase from 10 years ago.

For many families, that means facing difficult questions about how to provide care and how to prepare financially when someone becomes dependent on them again.

Stoy Hall, founder and CEO of Black Mammoth, a financial planning and wealth management firm, said one option to consider is long-term care insurance. He said it can help cover expenses such as nursing homes, assisted living facilities and in-home care that are not typically covered by regular health insurance or Medicare.

But Hall said that is not always realistic for every family. If a parent or grandparent is moving in, he said, families should take a close look at that person’s assets and build a financial plan around what care will cost.

“I know it’s difficult. Some of them have nothing, right? But some of them do have stuff. And if they do have some type of asset, then you need to plan what their spending is going to look like, whether that is for meds or not meds, if you’re going to feed them or not feed them. But you need to set those boundaries around what they can provide and what you’re going to provide,” Hall said.

Hall said families also need to think beyond money. Bringing someone into the home can mean more grocery costs, more scheduling challenges and a bigger time commitment overall.

He said many people do not fully consider what day-to-day caregiving will require, including balancing a loved one’s medical appointments with their children’s activities and other family responsibilities.

Hall said communication is critical. Setting boundaries and creating a financial plan early can help families better manage the costs and demands of caregiving.