What are the top ten things you need to know in dealing with your aging parents finances?

What are the top ten things you need to know in dealing with your aging parents finances?

1. Know What Estate Planning Documents Your Parents Have:

• Last Will & Testament
• Durable Power of attorney
• Living Will/Health Care Proxy

2. Know Where Your Parent’s Documents Are Stored.

3. Know who has the Role of Power of Attorney, Executor, Health Care Proxy and Guardian –Are They Still the People Your Parents Want?

4. Know Who Your Parent’s Advisory Team Is and Have a Meeting With Them.

5. Know Whether Your Parents Have Filed Their Tax Return.

6. Know What Your Parents Are Invested In.

7. Know If Your Parents Have Long Term Care Coverage and If they Do, Learn What the Benefits Are.

8. Know What the Cost For Care Is For Your Region. Check Out the Metlife Long Term Care Cost Study:

    https://www.metlife.com/mmi/research/2012-market-survey-long-term-care-costs.html#keyfindings

9. Know That Poor Financial Decisions Are Often The First Sign of Trouble. Periodically, Look at the Credit Card statements and the Investment Account Statements. –Are There any Recent Unusual transactions? Are they Bouncing Checks?

     10.  Know That Financial Independence is a Sensitive Topic. It May Take a While  Before Your Parents are willing to enlist your aid.

If you have any questions about this topic, please feel free to call my office at 201-843-0044 or email me at twatters@wattersfinancial.com

Should you have Long term Care?

Genworth Financial’s  2013 Cost of Care Survey, conducted by CareScout, included nearly 15,000 LTC providers from all 50 states.

The top ten most expensive states for Long Term Care are New Jersey, New York, Connecticut,  Maine, New Hampshire, Vermont, Delaware, Massachusetts, Hawaii and Alaska. I’ve listed below the costs for New Jersey, New York and Connecticut. The study, running for its 10th year, indicates that over the past five years the median annual rate for a room in a private nursing home has increased by 4.45% (compound annual growth rate), so that the room you might have had in 2008 at a cost of $67,525 will now cost you $83,950—an additional $16,425 per year.

The top ten least expensive states include  Arkansas, Texas, Iowa, South Carolina, Georgia, Kansas, Oklahoma, Alabama, Louisiana and Missouri

I recommend Long Term Care insurance for all my clients because only a lucky 30% of the population is estimated not to need long-term care after age 65. If you want to discuss this further, please call me.

New Jersey

Average Annual Cost: $65,203

Adult day care: $20,800

Licensed home care: $46,904

Assisted living: $71,928

Nursing home (private room): $121,180

New York

Average Annual Cost: $59,598

Adult day care: $19,500

Licensed home care: $45,760

Assisted living: $47,400

Nursing home (private room): $125,732

Connecticut

Average Annual Cost: $68,983

Adult day care: $20,800

Licensed home care: $43,472

Assisted living: $60,000

Nursing home (private room): $151,658