Family & Caregivers
Financial Planning
 
Financial Terminology
Assessment of the Financial Situation
Anticipation of Future Expenses
Financial Security and Support for the Caregiver
Financial Resources
Accessing Assistance
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 Financial 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 Institute suggests the following publications:
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.
LawInfo.org 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.
Assessment of the Financial Situation
Before you can plan for future living and medical expenses, locating
the following documentation is important:
-
Investment Accounts
Identify and record all investment assets including money market
accounts, certificates of deposit (CDs), U.S. Savings Bonds, Treasury
Bonds, and other money market and stock market equity investments.
Record the account numbers, maturity dates, ownership, rights of
survivorship, and payable upon death specifications.
-
Retirement Benefits
This includes any pensions, retirement plans, individual retirement
accounts (IRAs), annuities, military benefits and Social Security
benefits. Identify and record employee identification number
and or account number and respective value, military rank, and
serial number.
-
Insurance Information
Identify all types of insurance including medical, long-term care,
and life insurance and record the policy numbers, benefit periods,
beneficiary information, and value as applicable.
- Personal Property
Locate deeds/mortgages/liens for all property including homes,
real estate, vehicles, time shares, personal belongings (i.e. home
furnishings, jewelry, collectibles).
-
Debts and Liabilities
Identify and total accounts payable including mortgages, loans,
notes, liens, outstanding accounts, lawsuit settlements, and taxes.
Provides a worksheet to help you record where to find these and
other important documents when they are needed. You may also want
to create a list of phone numbers and addresses to access the necessary
documentation and/or to file claims.
Anticipation of Future Expenses
Once you have gained a better understanding of the current financial
situation, attempt to identify any future expenses that may result
from changes in the living situation and the need for care:
-
medical services (i.e. copayments, deductibles, uncovered expenses,
maximum benefits)
-
travel and lodging costs
-
medications (prescription and over-the-counter)
-
medical supplies (i.e. wheelchair, lift chair, hospital bed)
-
support services (i.e. personal care, respite, home health)
-
home adaptations (i.e. wheelchair ramp, electric stair climber,
bathroom modifications, and security measures)
-
alternatives to home living arrangements (i.e. assisted living,
skilled nursing home)
Agencies that provide the products and services above can provide
estimates of the costs associated with the anticipated expenses.
For additional information on insurance coverage of some of these
services, visit the Insurance and
Payment portion of the family and caregivers portal.
Financial Security and Support for
the Caregiver
For primary caregivers, the government provides financial protection
and support through:
- Tax Deductions and Credits
As a caregiver, you may be able to claim your loved one as a dependent
to receive expense deductions on your federal taxes. For additional
information, consult:
Internal
Revenue Service
Department of the Treasury
Provides information on reducing your federal taxes for caring for
a spouse or a dependent.
- AARP
Tax Aide
American Association of Retired Persons
Offers tax assistance on-line or in person at a site
near you 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 verify:
- credentials
- work experience
- educational background
- membership in professional associations
Also ask if the professional is familiar with elder care or terminal
illness issues.
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).
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