Caring for your elderly parents is a role that we all hope that we can handle if the time comes but never the preference for you or them.
But your careful plans that you start now at whatever stage that they may be at, will make a major difference in the management of the stress, cost and time it will take in that overwhelming circumstance.
Begin your preparation by starting to talk with your parents about values and desires that they want you to respect in the process.
Some of their feelings may be unrealistic as their life changes but it is important that you show that you are listening and recording their thoughts.
You may also want to include a trusted family member who can provide some emotional support for this sensitive topic.
The next step that you must do immediately is to begin to organize and record the data that describes the obligations of your parents' lives.
Find out all that you can about tax returns, assets they own, wills or estate documents,medical records, financial statements for all of their bank accounts and retirement plans.
You will want to find out who their professional advisors have been like doctors, lawyers and accountants.
Prepare a network of organizations in the community who can give you advice and support.
Interview the caseworkers now whether you need their help this year or not.
There is no reason to try to reinvent the wheel when the core questions that you have on your mind have already been asked by many other families just like yours right where you live.
Depending on how the situation progresses, you may need the support of some of these local groups and early familiarity with their approach will help to reduce the stress you will feel when the time comes.
These are the categories that will help to address your concerns and make you better prepared: Housing and Health care advice Financial advice: financial planner, banker, accountant Legal advice: attorney who can help with locating existing documents and drafting power of attorney forms Adult day care: local non-residential facilities that provide meals and activities in safe environment during the day.
Caregiver support groups: Alzheimer's Association, Children of Aging Parents Geriatric Assessment: your personal doctor and/or hospital Respite Care: Where can you bring your parents for a short period to give yourself a break from care? You will need to become educated about benefits and pitfalls that impact your financial planning and tax liabilities as well as your parents risks and revenue needs.
You will probably want professional advice on protecting your own retirement savings so that you do not get distracted from preparing from your retirement goals because of expenses related to your parents.
Federal income tax law provides several tax benefits to you if you are supporting your parents financially.
If you have a dependent care account at work, you can put pre-tax dollars into it to help pay for some of their expenses with tax savings.
You may be able to claim an exemption for your parents as dependents and you may be able to claim a dependent care credit.
In addition, you may be able to file your taxes as head of household and deduct medical expenses you paid for your parents.
Check with your tax advisor for the correct form to implement these strategies.
A back up plan that needs to be considered for some families is the ability for your parent to claim some Social Security benefits based on your work record, if you pass away first.
If you are providing at least one half of your parent's support at the time of your death, and he or she is age 62 or more and is not entitled to a retirement benefit that is equal to or larger than the amount he or she would have received on your earnings record, then he or she may be entitled to receive a parent's Social Security benefit equal to 82.
5% of your primary insurance amount.
As you can see, there are many factors that should be considered in advance of the actual stage of need.
When you have developed a plan for the most likely situations, you will have more confidence that you are taking steps which are in your best interests and your parents.