Once you've answered these questions, it's time to identify, analyze and evaluate your financial resources. The majority of elder care costs are provided and paid for by the aging individuals and their families; therefore, I'd like to focus briefly on how to unlock these private resources. I advise my clients to consider the following resources.
Insurance: Long-term Care, Life & Annuities
* What are the benefits and how can you obtain them?
* What is the cost of tapping these benefits?
Assets: Investments, Savings & Retirement Funds
* What is the value of these assets, both individually and bundled?
* Consider the safety and liquidity of all assets.
* Can they facilitate income to meet expenses?
* What are the true net financial returns or benefits of alternative solutions?
* Consider all associated costs, such as taxation impact, cost of sale and acquisition fees.
* How are the assets legally held (e.g., trusts)? Understand the specific terms.
Real Estate
* Are there income production possibilities that don't presently exist?
* Consider the capital gains taxation on a possible sale. Does it make sense to sell?
Financing: Real Estate Equity Loans & Reverse Mortgages
* Understand the true costs, including all associated fees. Compare APRs (annual percentage rates).
* What are the alternatives to meet the needs of "aging in place"?
Personal Property
* Assess the financial value of personal property such as jewelry, art, collectibles and antiques.
* Consider the personal value of these items before deciding what you want to do with them.
