The right assisted living community provides your loved one with a wonderful, enriching lifestyle in a safe and secure environment. Such communities provide help, as needed, with the activities of daily living (ADLs) and offer a wide range of stimulating social and recreational activities. These benefits help to make assisted living a popular choice for seniors all around the country. If assisted living seems like a good fit for your mom and/or dad, then there are several steps you need to take to make sure you and your loved one have a solid plan to handle assisted living costs.
Assess the Financial Situation of Your Loved One
You'll need to sit down with mom and have a respectful conversation about her financial situations and assets. If this will be a sensitive conversation or if there are family tensions related to finances, you may want to bring in an outside unbiased financial planning professional to help with this process; there are many such professionals who specialize in elder care planning. You may be able to tap into the financial planning expertise at assisted living communities in your area, as many have experts in planning for assisted living costs.
Analyze What Assets Can Help Pay Assisted Living Costs
Find out about liquid assets (bank accounts, equities, etc) as well as insurance, annuities and real-estate holdings. One of the largest sources of funds often used for assisted living is the family home. If dad is willing to sell the home, then this is a good place to start to provide funds for assisted living. If mom purchased a long-term insurance policy, then carefully review it to determine what it will pay for assisted living. Find out if annuities can be cashed in early to provide funding.
Government benefits such as Medicaid and Veteran's benefits may also provide a source of funds, though these programs have many rules and restrictions; if you believe your loved one might qualify for help through these programs, be sure to reach out to someone with intimate knowledge of these programs. This is critical so there are no unpleasant surprises. For example, many people don't realize that neither Medicare nor Medicare Supplemental insurance will pay for home care or assisted living. Medicaid eligibility is very strict and designed only for people with very low incomes and limited financial assets. Qualifying for Medicaid is challenging and may require your loved one to drastically reduce their assets.
Another source of financial help could be other family members, so consider this option if it seems realistic for your loved one's family situation. But tread carefully here, as financial conversations among family members can be difficult and sensitive.
Set a Budget and Research Assisted Living Communities
Once you have a clear picture of dad's financial situation, put a budget together for assisted living costs. Be aware that the monthly rate is not the only cost associated with assisted living. There are other fees not covered, such as guest meals, entry deposit costs and private transportation. You'll know what those costs are once you begin your research and on-site visits to assisted living communities in your desired geographic area. Make sure you set aside adequate time with each community to assess its suitability. Set up interviews with key managers and staff people. Take a tour of the community and join them for a community center meal. Visit at different times of day and talk to residents without staff members present.
Good financial planning is invaluable prior to a move to assisted living. What suggestions would you offer to other families in this situation?
