Caring for Aging Parents

Planning for the needs of aging parents is often a sensitive and delicate task for adult children to undertake. These days, it is not unusual for many people to live 20 or more years beyond normal retirement age. When parents reach their 80's and 90's, plans that were satisfactory in their 60's or 70's may require a second look. Some areas of special concern to older seniors and individuals with aging parents or loved ones are asset management, health care, and living arrangements.

Many older seniors may find themselves unable to continue managing their assets. A variety of arrangements are possible to transfer that responsibility to others, among them:

• Revocable and irrevocable trusts. Seniors who wish to retain control over their property may want to consider a revocable trust. This arrangement allows the senior to monitor the management of his or her assets, yet offers the flexibility to change the trust as needs and circumstances warrant. Alternatively, an individual who is willing to relinquish ownership of assets altogether could establish an irrevocable trust.

• Durable power of attorney. This mechanism allows seniors to designate a trusted relative or friend to make legal and financial decisions for them in the event of disability or cognitive impairment.

With health care costs spiraling upward and people living longer, seniors of advanced age should anticipate facing high medical costs. Public programs provide some health care benefits through Medicare and Medicaid, but seniors need to understand the coverage those programs may provide and what costs they can expect to face.

Medicare can cover inpatient services at hospitals and other health care facilities for seniors age 65 and older. Medicare offers Part A Hospital Insurance, Part B Medical Insurance and Part D Prescription Drug Coverage.

Medicaid is the only government program that covers long-term care expenses. Because it is a public program designed for low-income individuals, seniors typically have to spend down their savings in order to be eligible.

For many families, long-term care insurance can provide a measure of support. It offers a flexible funding alternative and can help ensure that your love ones’ medical needs are met.

Many seniors wish to remain in their own homes. However, if a parent is unable to live independently, there are alternatives to consider. Assisted living facilities provide a protected environment with a semblance of independent living. Generally, meals are provided in a communal dining room and assistance, such as with washing, dressing, or medications, is available.

In the transition to the later stages of life, fresh needs and concerns may call for revisiting plans made at an earlier age.  For help evaluating your options, please contact us at 800.328.8797, ext. 6077, or email us at financial@dcu.org.

DCU Financial
220 Donald Lynch Boulevard, Marlborough, MA 01752 • 800.328.8797, ext. 6077 • Email: financial@dcu.org
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