As life expectancy continues to increase, many people are finding a new aspect to be considered in estate planning. In addition to planning for your children, you may need to also provide for your parents. This was not always a consideration. It is especially true for the Baby Boomer generation, those born between 1946 and 1964.
There are several thoughts to consider when it comes to caring for your parents:
- Do your parents currently rely on you for physical or financial support? What would happen to them if you unexpectedly became disabled or died? Do you have something in your estate plan to care for them in the event of your unexpected death?
- More than ever families are being put in the position of providing long-term care for their parents. A strong majority of those over 65 will need some type of in-home assistance, long-term care, or nursing home care. In many of these situations, Medicare and Medi-cal will not alleviate the financial strain.
- With doctors refusing new Medicare patients and Medicare/Medi-cal cutting doctor reimbursements, there is going to be a serious physician shortage. This will significantly affect the cost of end-of-life care.
- Healthcare costs are consistently rising right along with life expectancy. There are more financial costs associated with growing older than ever before.
- You can set up a trust dedicated to the purpose of caring for your parents upon your death.
- If you are looking to protect assets in your estate, set up a life insurance policy that lists your parents as beneficiaries. This can provide them with financial assistance upon your death without draining other assets away from the estate.
- Asset Protection Trust to protect Parents’ assets, including the family home.