Becoming a caregiver for aging parents can be a drain emotionally and can carry financial ramifications both for parents and for the caregiver children. Understanding and managing the financial issues involved could help make the situation a bit easier for all.

In this checklist, we cover a number of financial issues that you need to consider when faced with helping and potentially caring for aging parents, including:

• Examine your parents’ finances to determine if they are able to manage their own expenses. There may be sources of income available to your parents of which they are unaware.
• It’s important to be sure you have access to your parents’ important documents such as any estate planning documents. You should have the names and contact information for any advisors your parents use such as an attorney, financial advisor or accountant.
• If your parents need long-term care, you will need to investigate ways to cover the cost. Medicaid planning might be an option.
• If your parents’ estate is over a certain amount, then they may have an estate tax issue. It’s also important to ensure that your parents’ beneficiary designations on insurance policies and retirement plans are up to date, and that they reflect their wishes.
• It’s important for you to ensure that your parents’ tax situation is in order, managing any capital gains or losses, as well as fully utilizing any deductible medical expenses.
• Overall, the benefit of having a handle on all of your parents’ assets, liabilities and all related financial issues is important as a time may come when your parents are unable to manage their own affairs.

Please remember that different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product made reference to directly or indirectly in this content, will be profitable, equal any corresponding indicated historical performance level(s), or be suitable for you or your portfolio. Due to various factors, including changing market conditions, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this newsletter (article) serves as the receipt of, or as a substitute for, personalized investment advice from Allos Investment Advisors®, LLC.

The content of this letter does not constitute a tax or legal opinion. Always consult with a competent professional service provider for advice on tax or legal matters specific to your situation. To the extent that a reader has any questions regarding the applicability of any specific issue discussed in this content, he/she is encouraged to consult with the professional advisor of his/her choosing.

Published for the blog on January 14, 2025 by Allos Investment Advisors®, LLC.