Cora and her husband have three children under the age of 15. She has witnessed her parents’ health deteriorating and is stressed knowing she will be responsible for their care. How can she prepare for the inevitable?
Cora should start by investing time now to prepare. She should talk with her parents to get a complete picture of their financial and legal affairs. Do they have wills, long-term care or life insurance policies?
How about medical directives or powers of attorney? If not, Cora should consider getting these now instead of waiting until a health crisis. Having to handle these administrative tasks along with her grief may lead to unintended consequences.
If one parent is a veteran, the local Veteran Affairs office may have options for elder care and assistance.
Is downsizing right for her parents? Selling their empty nester home can yield a significant cash windfall and up to $500,000 of gain is excluded from tax, assuming eligibility tests for ownership and residency are met.
Client Profile is based on a hypothetical situation. The solutions we discuss may or may not be appropriate for you.