5 Financial Considerations When Caring for an Elderly Loved One

Caring for an elderly loved one can be a challenging transition that requires careful planning and preparation. Here are five financial considerations to keep in mind when caring for an elderly loved one.

Consider Obtaining a Power of Attorney

Evaluate whether you need a power of attorney based on your loved one’s physical or mental condition. This legal document enables you to make binding decisions on their behalf, manage their finances, and access their bank accounts and financial records. It’s essential for paying bills, selling assets, and securing Medicare benefits for your loved one.

If your loved one cannot grant power of attorney, a conservatorship could be an alternative. In cases where your loved one cannot communicate or sign documents, a court-appointed conservator can manage their assets in their best interests.

Assess Living Arrangements

Decide whether your loved one can live independently. If they cannot, consider options such as moving them in with you, or finding an assisted living facility or nursing home.

Assisted living is suitable for individuals who can manage daily tasks but may need help with certain activities such as preparing meals, housekeeping, and getting around. Nursing homes cater to those who are very frail or disabled and require constant care.

This decision may be difficult for your loved one, so have open discussions with them and their doctors, nurses, physical therapists, and mental health care providers.

Ensure Home Safety and Accessibility

If your loved one moves in with you, make necessary adjustments for safety and mobility. This may include installing ramps, lifts, and grab bars. Ensure that there is adequate space for walkers or wheelchairs, and consider easy-to-use remote controls for heating, air conditioning, lighting, and entertainment to enhance their comfort. Consider removing rugs and securing loose wires, as these can pose tripping hazards for people using walkers, canes, or crutches.

Understand Costs of Assisted Living and Nursing Homes

If your loved one requires an assisted living facility or nursing home, thoroughly review all associated costs and fees. Request a detailed list that outlines what services are included in the base payment, as well as any optional services and potential additional costs that may arise from specific circumstances, such as increased care needs or unexpected medical expenses.

Carefully examine the billing arrangements, including the frequency of payments or any required cash reserves for optional services. Understand how often rate adjustments occur and how much notice you’ll receive before any changes take effect.

Evaluate Atmosphere and Quality of Life

Selecting the right facility may seem daunting, but the taking the time to research options can make it easier. Consider the size and layout of the facility, including living quarters, dining areas, recreational spaces, and group activity rooms to ensure they align your loved one’s needs and preferences. Prioritize safety by checking for adequate lighting, fire safety systems, and clearly marked exits. Request documentation proving compliance with safety regulations and inspections.

Location is important, too. Look for a facility close to family, friends, and preferred medical providers. Consider whether it’s near parks, libraries, theaters, and other community resources that your loved one might enjoy.

The Financial Impact of Caregiving

Caring for an elderly loved one can be overwhelming, particularly when it comes to the financial aspects. However, careful planning can help ease that stress. By assessing their needs and exploring options for living arrangements, safety, and costs, you can manage the financial challenges more effectively and ensure they receive the quality care they deserve.

For more information on how PlainsCapital Bank can assist you with the financial aspects of caring for an elderly loved one, visit your local branch or call 866.762.8392.