Taking the First Step in Taking Care of Aging Parents and Preserving Their Finances

As baby boomers transition into
retirement and their golden years, their adult children are becoming
caregivers and counted on to provide financial support. More than 32
percent of adult children helped out with $5,000 or more of their
parents’ expenses in the last year, and more than 75 percent are
concerned about the impact it could have on their own financial
stability.

Savings have been hit hard because of the sagging economy, investment losses,
and depressed home values. Complicating matters is sky-rocketing
health care costs associated with Mom or Dad’s long-term care. An
experienced elder law firm can help preserve assets, connect with
government benefits and resources, and create a contingency plan to
address possible changes.

As you explore options on how to best take care of your parents, it is important that you understand the
legal implications of your good intentions. A false step could result
in lost Medicaid eligibility, adverse tax consequences, or any number
of other legal or financial problems. Discussing your situation with
an elder law attorney should be the first step you take in helping
your parents safely navigate the complex legal and financial issues
associated with caring for them.

Families oftentimes rely on bad advice from family members, their financial
advisor, accountant, or even their attorney, when developing a
financial plan to care for an aging parent.

Take for example the case where an elderly parent builds an apartment
on a child’s property so that he or she can be closer to family.
The money spent by the parent to build the apartment could be
interpreted as a gift that could result in lost Medicaid eligibility
and gift taxes.

People are beginning to understand the importance of involving an
experienced elder law attorney early in the retirement and long-term
care planning process. Nothing should be taken for granted. You
should not make the mistake of relying on common sense to the
exclusion of good legal advice.

John Hale is a <a href=”http://www.thehalelawfirm.com”>Dallas
elder law attorney</a> and <a
href=”http://www.thehalelawfirm.com”>Dallas estate
planning lawyer</a> with The Hale Law Firm. To learn more visit
http://www.thehalelawfirm.com.