ElderCare Planning

Elder Care Planning: Difficult Conversations

 

People almost never change without first feeling understood."

Douglas Stone, author of Difficult Conversations, How to Discuss What Matters Most

There will be many times during your lifetime when you must approach difficult subjects with loved ones. It seems that some of the most difficult conversations for adult children are those conversations with older adult parents, especially when the discussions involve potential changes in lifestyle.

Some common difficult topics to discuss with an older adult parent involve:

  • Downsizing and decisions related to moving or bringing help into the home
  • Driving and transportation alternatives
  • Financial issues and financial capacity
  • Family relationships
  • End of life planning

Ideally you are able to have family conversations with your older adult parent before there is an urgent need for action. However, if this isn't the case, it is important not to rush in and demand that changes be made (i.e. need to move from current home, stop driving, change registration on accounts to joint or take over financial affairs by way of conservatorship or guardianship). Attempting to impose your wishes for change on someone who has been in charge of their own life for as long as they can remember will likely be met with negative reactions such as refusal, defensiveness, denial, and possible irreparable damage to your relationship. On top of that, the situation will remain unchanged and your fears for your parent’s safety and well-being will remain.

Even when the need for change may be urgent, attempt to approach your older adult parent with respect and a desire to give them as much control over their situation as possible. Consider using the CARE conversation model developed by Dan Taylor, author of the Parent Care Solution to help you to have meaningful and productive conversations with your older adult parent

CARE Conversation Model

Challenges - What challenges does your parent currently have or see in their future related to living situation, health/care, and finances?

Alternatives -- What options does your parent want to consider to address these challenges?

Resources -- What resources can you identify to address these challenges (family, financial, community, government, etc.)?

Experience -- What is the experience your parent would like to have as they age?

It may be helpful to hold a family meeting with the help of your financial advisor to discuss these very important issues. An impartial party, like your advisor, can help ask the difficult questions and ensure that all concerns are heard. Your advisor can also help to document the conversations and help to develop a formal action plan to address issues of concern.

 

Sandra Adams, CFP® is a Partner and Financial Planner at Center for Financial Planning, Inc. Sandy specializes in Elder Care Financial Planning and is a frequent speaker on related topics. In 2012-2014 Sandy has been named to the Five Star Wealth Managers list in Detroit Hour magazine. In addition to her frequent contributions to Money Centered, she is regularly quoted in national media publications such as The Wall Street Journal, Research Magazine and Journal of Financial Planning.

Five Star Award is based on advisor being credentialed as an investment advisory representative (IAR), a FINRA registered representative, a CPA or a licensed attorney, including education and professional designations, actively employed in the industry for five years, favorable regulatory and complaint history review, fulfillment of firm review based on internal firm standards, accepting new clients, one- and five-year client retention rates, non-institutional discretionary and/or non-discretionary client assets administered, number of client households served.

Any opinions are those of Center for Financial Planning Inc. and not necessarily those of Raymond James C14-012699

Have you had “The Talk” about Health & Housing?

 There are plenty of conversations that can make us feel squeamish, reluctant, or just downright uncomfortable. As a parent of three kids ages 20, 18, and 11 I have gotten comfortable with “The Talk” you have with your children. For me, the first time through was given with a discernable quiver in my speech, but as they say, practice makes perfect.  Lately, “The Talk” I find myself having with a lot of clients is the one about Health and Housing. Frankly, I am not sure which one is easier, but I do know they are both important! 

What is your Housing Plan?

As comprehensive financial planners, we are concerned with helping our clients lead a more fulfilling life.  As you age, health and housing become critical elements that can determine the success of your retirement plan.  Clients used to ask, “Will I have enough for retirement?” Now what I hear is, “Can I afford the type of care and housing I want?” This “Talk” is so much more than a conversation about nursing homes.  Do you want to live in the three-story home where you raised your family?  You know, the one with all those stairs and the lovely yard that seems to need so much attention?  Have you had an expert come into your current home to suggest safety measures such as rails and bars in key areas?  Is a first-floor condo in your future?  Should you consider moving closer to one of the children? Should you buy or rent/lease? Do you want to involve your children or others in the conversation?

If you’ve asked yourself any of these questions, it's a sign that you need to have “The Talk”. Only you can determine the correct answers and, while “The Talk” can be a little intimidating and uncomfortable, the decisions will be much better if you develop a plan before a health or financial crisis. We are here to help.

Timothy Wyman, CFP®, JD is the Managing Partner and Financial Planner at Center for Financial Planning, Inc. and is a frequent contributor to national media including appearances on Good Morning America Weekend Edition and WDIV Channel 4 News and published articles including Forbes and The Wall Street Journal. A leader in his profession, Tim served on the National Board of Directors for the 28,000 member Financial Planning Association™ (FPA®), trained and mentored hundreds of CFP® practitioners and is a frequent speaker to organizations and businesses on various financial planning topics.

Any opinions are those of Center for Financial Planning, Inc. and not necessarily those of Raymond James C14-012690

Elder Care Planning: Preparing an Aging Parent for Financial Capacity Challenges

 Financial capacity is one of the first abilities to decline as cognitive impairment appears, whether due to the slowing down in older age or a more specific dementia diagnosis.  Anyone with an elderly parent should be prepared to face the challenges that can come with diminished financial capacity. The first step in preparation is to understand what you and your mother or father may be facing. Quite literally, financial capacity refers to a person’s ability to manage money and financial assets in ways that meet a person’s needs and which are consistent with his/her values and self-interests.  Financial capacity includes basic skills like identifying and counting money, understanding debt and loans, handling cash transactions, paying bills, and maintaining judgment to act practically and avoid exploitation. Given that, for most of us, the loss of some financial capacity is inevitable, these are some risks and how to prepare your family:

Financial Management Challenges – most often, the ability to handle the day-to-day money management becomes a challenge.  This may mean that things like handling incoming checks and bills or balancing the checkbook become difficult.  In these instances, bouncing checks, not paying bills when they are due, and not filing tax returns are commonplace.  It goes without saying that this can cause a multitude of problems (not to mention, extra cost).

Fraud/Financial Exploitation -- more and more we are hearing about occurrences of financial fraud, with older adults being the most targeted victims. Financial fraud and exploitation can come in many forms, including but not limited to theft of checks (Social Security, pension, etc.), theft or unauthorized use of ATM or credit cards to access funds, and tax fraud.  Many times, a trusted friend, family member or caregiver is the one taking advantage of the older adult.

What can you do to prepare to help you and your aging parent avoid these potential risks?

  • Make sure to have an update General/Financial Durable Power of Attorney naming a trusted family member or friend in place. 
  • Consider having a Revocable Living Trust drafted that names a successor to handle things in the case of financial incapacity; appropriate assets should be titled in the name of the trust.
  • Get your aging parent to communicate with his or her current/future Power of Attorney and/or Successor Trustee (and appropriate family members or friends) about money goals and values.  In addition, make sure all of his or her financial information is documented and organized in the case that someone needs to assist with financial matters in the future (consider a tool like our Personal Record Keeping Document and Letter of Last Instruction for this purpose).
  • Help facilitate an introduction between your parent’s current/future Power of Attorney and/or Successor Trustee (and appropriate family members or friends) to his or her  financial team (financial planner, CPA and estate planning attorney).  Make sure that each member of the professional team has authorization to talk to (1) other members of your professional team and (2) family members or friends that might assist in the future. 
  • Make sure that the chosen financial planner has a written Investment Policy Statement in place for managing your love one’s investment portfolio.  This written document outlines goals, risk tolerance, asset allocation preference and needs related to your parent’s investments. 

By working with a professional and personal team to plan ahead for the possibility of financial incapacity, you give yourself and your loved ones the best chance to avoid the risks to future financial independence.

This is the second in a monthly post (2nd Thursday of each month) that will address Elder Care planning topics.  If you have a specific question or issue you’d like addressed, please contact me at Sandy.Adams@CenterFinPlan.com.

Sandra Adams, CFP® is a Partner and Financial Planner at Center for Financial Planning, Inc. Sandy specializes in Elder Care Financial Planning and is a frequent speaker on related topics. In 2012 and 2013, Sandy was named to the Five Star Wealth Managers list in Detroit Hour magazine. In addition to her frequent contributions to Money Centered, she is regularly quoted in national media publications such as The Wall Street Journal, Research Magazine and Journal of Financial Planning.

Five Star Award is based on advisor being credentialed as an investment advisory representative (IAR), a FINRA registered representative, a CPA or a licensed attorney, including education and professional designations, actively employed in the industry for five years, favorable regulatory and complaint history review, fulfillment of firm review based on internal firm standards, accepting new clients, one- and five-year client retention rates, non-institutional discretionary and/or non-discretionary client assets administered, number of client households served.

The information in this material does not purport to be a complete description of the issues referred to herein. Any opinions are those of Center for Financial Planning, Inc. and not necessarily those of Raymond James. You should discuss any legal matters with the appropriate professional. C14-009365

,

The High Cost of Dying

,

 Death is the inevitable end of life and most of us do not spend much time thinking about it or the cost. According to the National Funeral Directors Association the average funeral can exceed $10,000 when you include cemetery costs. How we memorialize our loved ones is dictated by religious, cultural and societal practices, which may increase the cost dramatically.

Three Options for Funeral Planning

Most funeral practices are regulated at the state level with recent efforts to standardize practices through the national association. There are several ways to prepare for funeral costs.

  • Final Expense Insurance is a low-cost whole life insurance with face values in the amounts of $5—25,000. An advantage of these policies is the ease at which they can be obtained. The disadvantage is the proceeds do not necessarily have to be used for funeral expenses.
  • Pre-need Funeral Contracts are basically insurance policies. The money is placed into a trust, as regulated by most states. Clients should receive information on the policies over the years.
  • Funeral Trusts allow individuals to pre-pay funeral services so the money will be available when needed. Again, most states require the money to be put into a master trust, appropriately invested with clients knowing the name of the institution where it is held and receiving periodic reports.

Funeral Rule Legislation Protects Relatives

One of the most significant pieces of consumer protection legislation is the Funeral Rule, enforced by the Federal Trade Commission. This rule makes it possible for consumers to purchase only those goods and services they want, rather than an entire package of goods and services offered by the funeral home. Funeral homes must provide a general price list that includes all items and services the home offers and the cost of each one. Generally, this rule provides:

  1. A person has the right to choose the funeral goods and services they want
  2. The funeral provider must give a person a general price list that states what is wanted in writing
  3. If state or local law requires individuals to buy any particular good or service, it must be stated with references to the law
  4. The funeral director cannot refuse to handle a casket or urn purchased somewhere else
  5. Funeral directors that provide cremations must make alternative containers available to consumers
  6. Individuals cannot be charged for embalming if not authorized

This legislation was passed to counteract many abusive practices that existed within the industry.

In addition to the cost of funerals, the biggest assistance living individuals can give to their loved ones is to leave their wishes on what services they would like for themselves. These wishes should be stated in writing and placed where they will be found. It is recommended it not be in the will, which may not be discovered until after the funeral. It is a great gift to the family to know they are providing the type of service their loved one desired.

Any information is not a complete summary or statement of all available data necessary for making an investment decision. Any opinions are those of Center for Financial Planning, Inc. and not necessarily those of Raymond James. You should discuss any legal matters with the appropriate professional. C14-007746

,

Elder Care Planning: Is It Time to Start?

,

 The truth is, we all will think about retirement planning – we all want to retire someday to enjoy the fruits of our working life labor.  We plan for where we will live, what we will do with all of our free time, and how we will pay for all of those things as we enjoy our non-working years.  What we don’t often plan for, or even want to think about, are those things that we don’t plan for – things like health care issues or the need for change in living arrangements that may happen as we age.  There is a need to plan for this part of retirement, as well.

How do you know if you have planned well for ALL of your retirement; that you have planned for the “what-ifs” to help ensure that your future retirement – all of it – remains on track and can be successful?  You might consider starting with our Future Care Strategies Checklist. By taking 5 minutes to consider issues relating to your estate planning, financial planning and future care preferences and plans, you can determine if there are additional areas that need to be addressed in your future retirement planning. 

We believe that it is important for all individuals to have as much control over their lives – for their whole lives – as possible.  Work with your financial planner to make sure that all of your future planning needs – not just the financial aspects – are in place before a crisis occurs.  Take a few minutes today to make sure that your planning is complete.

This is the first in a monthly post (2nd Thursday of each month) that will address Elder Care planning topics.  If you have a specific question or issue you’d like addressed, please contact me at Sandy.Adams@CenterFinPlan.com.

Sandra Adams, CFP® is a Partner and Financial Planner at Center for Financial Planning, Inc. Sandy specializes in Elder Care Financial Planning and is a frequent speaker on related topics. In 2012 and 2013, Sandy was named to the Five Star Wealth Managers list in Detroit Hour magazine. In addition to her frequent contributions to Money Centered, she is regularly quoted in national media publications such as The Wall Street Journal, Research Magazine and Journal of Financial Planning.

Five Star Award is based on advisor being credentialed as an investment advisory representative (IAR), a FINRA registered representative, a CPA or a licensed attorney, including education and professional designations, actively employed in the industry for five years, favorable regulatory and complaint history review, fulfillment of firm review based on internal firm standards, accepting new clients, one- and five-year client retention rates, non-institutional discretionary and/or non-discretionary client assets administered, number of client households served.

C14-005523

,

Holiday Financial Conversations for the Generations: Older Adult Parents

,

 The holidays provide us with rare opportunities to gather with family.  This is a time to check in with older adult parents to see how things are going and to see what might be changing.   Often, we will notice that time (and/or age) are beginning to make everyday life a little more challenging for our parents.  This is the perfect time to ask your parents about their plans for their future.

Things to discuss with your parents may include:

If having these conversations makes you feel uneasy, you are not alone.   However, giving your parents the opportunity to express their desires and helping them to put an actual plan in place to make their plans a reality is an invaluable gift.  And what better time than the holidays to give that gift?

Contact your financial planner for tips on holding these conversations or to schedule a family planning meeting.

Sandra Adams, CFP® is a Financial Planner at Center for Financial Planning, Inc. Sandy specializes in Elder Care Financial Planning and is a frequent speaker on related topics. In 2012 and 2013, Sandy was named to the Five Star Wealth Managers list in Detroit Hour magazine. In addition to her frequent contributions to Money Centered, she is regularly quoted in national media publications such as The Wall Street Journal, Research Magazine and Journal of Financial Planning.

Five Star Award is based on advisor being credentialed as an investment advisory representative (IAR), a FINRA registered representative, a CPA or a licensed attorney, including education and professional designations, actively employed in the industry for five years, favorable regulatory and complaint history review, fulfillment of firm review based on internal firm standards, accepting new clients, one- and five-year client retention rates, non-institutional discretionary and/or non-discretionary client assets administered, number of client households served.

Top 3 Elder Care Planning Mistakes -- #3

 So, you’ve designed a plan to address the challenges you may face as you age.  You’ve taken action to put the plan into place.  So, all of your bases are covered…right? One last step is needed to complete the Elder Care Planning process...

Mistake #3 – Failure to COMMUNICATE! 

To who, you ask?  First and foremost, you should communicate your plan to your family and/or other important people in your life who might play a part in making sure the plan is put into place as designed.  If those who might help support you in the future aren’t aware of your desires and of the legal, financial and care plans you have put into place, all might be for naught!  Additionally, you should communicate your Elder Care plan to your professional partners…your financial planner, your attorney, your CPA and/or any other important professional advisor who might play a part.  It is important for all of these team members to know the game plan to help ensure that your future Elder Care plan will be a success.

If you would like to discuss Elder Care Planning for your future, feel free to contact me at Sandy.Adams@CenterFinPlan.com.

Sandra Adams, CFP® is a Financial Planner at Center for Financial Planning, Inc. Sandy specializes in Elder Care Financial Planning and is a frequent speaker on related topics. In 2012 and 2013, Sandy was named to the Five Star Wealth Managers list in Detroit Hour magazine. In addition to her frequent contributions to Money Centered, she is regularly quoted in national media publications such as The Wall Street Journal, Research Magazine and Journal of Financial Planning.

Five Star Award is based on advisor being credentialed as an investment advisory representative (IAR), a FINRA registered representative, a CPA or a licensed attorney, including education and professional designations, actively employed in the industry for five years, favorable regulatory and complaint history review, fulfillment of firm review based on internal firm standards, accepting new clients, one- and five-year client retention rates, non-institutional discretionary and/or non-discretionary client assets administered, number of client households served.

Any opinions are those of Center for Financial Planning, Inc., and not necessarily those of RJFS or Raymond James.

Top 3 Elder Care Planning Mistakes -- #2

 

In my previous post, I referenced the top Elder Care Planning Mistake – Failure to Plan.   Once you have remedied this mistake and have actually completed your planning, what might be your next mistake?

Mistake #2 – Failure to Implement

Failure to implement is not just an Elder Care Planning mistake – it is a mistake that comes with many types of planning.  You have put in the work to address your planning strategies and you have worked with your financial planner, attorney, care professional and others to lay out a detailed plan.  Then what?  Many find a nice place to store the written plan and documents, and set it aside, assuming that everything is set for the future.  WRONG!!

Just because the plan is in writing doesn’t necessarily mean you’re covered.  If you have drafted legal documents, there is very likely action needed to implement the legal plan. This action may involve making titling changes on property and investment accounts, updating beneficiary designations on retirement accounts and insurances, or even shifting assets from one account to another. If you have a financial plan to address future Elder Care issues, this often means acting on the plan and meeting with your financial planner at least annually to make sure that you remain on track.    Acting on the plan and implementing the plan is as important as making the plan in the first place.

Click here for Elder Care Planning Mistake #3.

Sandra Adams, CFP® is a Financial Planner at Center for Financial Planning, Inc. Sandy specializes in Elder Care Financial Planning and is a frequent speaker on related topics. In 2012 and 2013, Sandy was named to the Five Star Wealth Managers list in Detroit Hour magazine. In addition to her frequent contributions to Money Centered, she is regularly quoted in national media publications such as The Wall Street Journal, Research Magazine and Journal of Financial Planning.

Five Star Award is based on advisor being credentialed as an investment advisory representative (IAR), a FINRA registered representative, a CPA or a licensed attorney, including education and professional designations, actively employed in the industry for five years, favorable regulatory and complaint history review, fulfillment of firm review based on internal firm standards, accepting new clients, one- and five-year client retention rates, non-institutional discretionary and/or non-discretionary client assets administered, number of client households served.

Any opinions are those of Center for Financial Planning, Inc., and not necessarily those of RJFS or Raymond James.

Top 3 Elder Care Planning Mistakes -- #1

 

In my previous post, I explained Elder Care planning – what it is and when you should consider this planning.  Those tips helped you prepare, but there are also some pitfalls in planning you need to avoid. Here is the first of a 3-part series on the top Elder Care Planning mistakes.

Mistake #1 – Failure to Plan

Most people like to envision leading a healthy, happy retirement and doing all of the things they enjoy until the day they pass away.  In reality, later years of retirement are often clouded with the need for changes in lifestyle as physical and cognitive abilities slow down.  The fact that we are living longer makes these future changes even more possible.

The biggest mistake you can make is failing to plan for Elder Care. To avoid this mistake, first tackle this questionnaire that will help you to identify areas of planning that need to be addressed. Elder Care planning is much more than planning for the actual care for future ailments.

Elder Care planning encompasses a full range of topics including:

  • Your future life – how you envision living it, with or without physical or cognitive challenges
  • Your money – how you plan to use it in the future
  • Your home – your current home or something different
  • Your property – your stuff and how you want it handled and disbursed
  • Your care – who will provide it, when and where
  • Your legacy – your financial legacy, as well as your values-oriented legacy

Click HERE for specific things to consider and questions to answer when planning for each facet of your life.

3 key areas to address as you consider how to plan for each of these topics:

  • Challenges you may face
  • Alternatives that you might consider if you can’t live your ideal life
  • Resources that you will have available to you, now and in the future

Planning for your future is the best way for you to remain in control and have the future life you desire, no matter what the circumstances might be.  Is now the right time for you or someone you love to start planning?  Contact your financial planner and start today!

Click here for Elder Care Planning Mistake #2.

Click here for Elder Care Planning Mistake #3.

 

Sandra Adams, CFP® is a Financial Planner at Center for Financial Planning, Inc. Sandy specializes in Elder Care Financial Planning and is a frequent speaker on related topics. In 2012 and 2013, Sandy was named to the Five Star Wealth Managers list in Detroit Hour magazine. In addition to her frequent contributions to Money Centered, she is regularly quoted in national media publications such as The Wall Street Journal, Research Magazine and Journal of Financial Planning.

Five Star Award is based on advisor being credentialed as an investment advisory representative (IAR), a FINRA registered representative, a CPA or a licensed attorney, including education and professional designations, actively employed in the industry for five years, favorable regulatory and complaint history review, fulfillment of firm review based on internal firm standards, accepting new clients, one- and five-year client retention rates, non-institutional discretionary and/or non-discretionary client assets administered, number of client households served.

Any opinions are those of Center for Financial Planning, Inc., and not necessarily those of RJFS or Raymond James.

What is Elder Care Planning?

 What do you think of when you hear the term Elder Care?  For most, the term springs to mind thoughts of care for older adults who are in need of assistance…at home care or care in some type of assisted living or other care facility.  In reality, Elder Care encompasses a much broader spectrum of planning issues for older adults, including legal and financial planning in addition to traditional care and assistance.

Individuals work with their financial planners to plan for retirement.  To most, this means making sure that they have enough income and savings to maintain their lifestyles after their work lives are over.  This can mean traveling, pursuing hobbies and spending time with family that was not possible during working years.  What most people fail to plan for are later years of retirement that might involve health and or cognitive issues that can cause changes in lifestyle and expense. 

It is never too early to start planning for these later life issues.  It is never too early to think about the challenges you might have as you age and your preference for how to address those challenges, should they occur.  Many people, however, delay this type of planning not wishing to think about what might happen in later life.

How do you know if it is time for you to talk to your financial planner about Elder Care Planning?  Answering these few simple questions can help you decide if you need to start planning.  If you can answer YES to all of the questions on this checklist, congratulations…you’ve planned well.  If you answer NO or NOT SURE to any of the questions, it might be time to talk to your financial planner and start planning now.  

In my upcoming blogs I’ll walk you through some of the top Elder Care Planning mistakes.

Sandra Adams, CFP® is a Financial Planner at Center for Financial Planning, Inc. Sandy specializes in Elder Care Financial Planning and is a frequent speaker on related topics. In 2012 and 2013, Sandy was named to the Five Star Wealth Managers list in Detroit Hour magazine. In addition to her frequent contributions to Money Centered, she is regularly quoted in national media publications such as The Wall Street Journal, Research Magazine and Journal of Financial Planning.

Five Star Award is based on advisor being credentialed as an investment advisory representative (IAR), a FINRA registered representative, a CPA or a licensed attorney, including education and professional designations, actively employed in the industry for five years, favorable regulatory and complaint history review, fulfillment of firm review based on internal firm standards, accepting new clients, one- and five-year client retention rates, non-institutional discretionary and/or non-discretionary client assets administered, number of client households served.

Any opinions are those of Center for Financial Planning, Inc., and not necessarily those of RJFS or Raymond James.  You should discuss any legal matters with the appropriate professional.

Live YOUR Plan™