Financial Terminology
Assessment of the Financial Situation
Anticipation of Future Expenses
Financial Security and Support for the Caregiver
Accessing Assistance
Financial Resources

Preparing for Your Loved One's Financial Needs
In addition to the physical and emotional demands of caregiving, providing for the care of a loved one can be financially challenging and requires planning for the payment of present and future medical and living expenses.

Important Terminology
Understanding financial terminology is the first step towards ensuring that funds are available to cover the costs of care for a loved one. To provide assistance, the Aging Institute suggests the following publications:

• Guide to Legal Issues for Pennsylvania Senior Citizens (pdf file)
  Published by the Pennsylvania Bar Association and Pennsylvania Bar Insurance Trust Fund
  This guide offers basic information to assist older adults and their caregivers in making important decisions to protect and maintain their independence. An extensive component focuses on financial planning, estate planning, legal documentation, and ways to minimize costs of living and securing necessary care.
• American Bar Association (ABA)
  The ABA offers important information on a variety of legal topics including finances, home ownership and protection, family and elder rights, workplace issues and several other topics.
• Medicare: Glossary of Terms
  Published by the Centers for Medicare and Medicaid The Glossary of Medicare Terms provides definitions for commonly used terminology related to insurance and the filing of medical claims.

• Bank Accounts: All accounts, including savings and checking accounts, and loans and liens, as well as details on who holds these accounts and any death provisions
• Investment Accounts: All investment assets, such as money market accounts, certificates of deposit (CDs), U.S. Savings Bonds, treasury bonds, and other money market and stock market equity investments, along with the account numbers, maturity dates, ownership information, rights of survivorship, and payable-upon-death specifications
• Retirement Benefits: Any pensions, retirement plans, individual retirement accounts (IRAs), annuities, military benefits and Social Security benefits, including employee identification numbers and or account numbers, respective values, military rank, and serial numbers
• Insurance: All types of insurance—medical, long-term care, and life insurance—and the policy numbers, benefit periods, beneficiary information, and values
• Legal Documents: A power of attorney, will, and living trust, and any necessary witness signatures and notarizations
• Personal Property: Locate deeds/mortgages/liens for all property including homes, real estate, vehicles, timeshares, personal belongings (i.e. home furnishings, jewelry, collectibles).
• Funeral Arrangements: Any arrangements and prepayments made
• Debts and Liabilities: Accounts payable including mortgages, loans, notes, liens, outstanding accounts, lawsuit settlements, and taxes

Organizing Financial Documents
The worksheet below will help you record where to find these and other important documents when they are needed. It also provides a place to list phone numbers and addresses for easy access when necessary.

Where to Find My Important Papers
Published by the Family Caregiver Alliance, a National Center on Caregiving

Anticipation of Future Expenses
Once you’ve gained a better understanding of the current financial situation, the next step is estimating any future expenses that may result from changes in your loved one’s health or living situation. Some of these estimates can be obtained from the agencies that provide the products and services, while others may be covered partially or wholly by insurance providers. For additional information on insurance coverage, visit our family and caregivers’ Insurance and Payment section.

Possible Future Expenses

• Medical Services (copayments, deductibles, uncovered expenses, maximum benefits, etc.)
• Travel and Lodging costs
• Medications (both prescriptions and over-the-counter medicines)
• Medical Supplies and Home Adaptations (wheelchair, ramp, lift chair, electric stair climber, hospital bed, etc.)
• Support Services (personal care, respite, home health, etc.
• Alternative Living Arrangements (assisted living, skilled nursing home, etc.)

Resources to Ensure Your Own Financial Security
It is just as important to safeguard your own financial situation while you care for your loved one. Through the government, you can find financial protection and support programs including:

• Family Medical Leave Act
  U.S. Department of Labor
• Reimbursement for Caregiving
  Area Agency on Aging
• Tax Deductions and Credits
  Internal Revenue Service Website
  Department of the Treasury
  You may be able to claim your loved one as a dependent to receive expense deductions on your federal taxes. The website provides information on reducing your federal taxes while caring for a spouse or dependent.
• AARP Tax Aide
  American Association of Retired Persons
  Get tax assistance online or find an AARP Tax-Aide site near you to get help in person, available through a collaboration between AARP and the IRS Tax Counseling for the Elderly program.

Accessing Assistance
Professionals that provide assistance in planning for immediate and long-term financial needs include:

• Financial Advisors
• Estate Planners
• Accountants

Many banks offer services that will help manage your accounts.

Before hiring any professional for assistance, be sure to ask if the professional is familiar with elder care or terminal illness issues, and also verify his or her:

• Credentials
• Work Experience
• Educational Background
• Membership in Professional Associations

Many of our documents are available in PDF format. To read PDF files, Adobe Acrobat Reader® software must be installed on your computer. Download Acrobat Reader (free version).