Navigate Up

Preparing for Your Loved One's Financial Needs

In addition to the physical and emotional demands of caregiving, providing for the present future medical and living expenses of a loved one can be financially challenging and requires planning.

Assessment of the Financial Situation

Before you can plan for future living and medical expenses, locating—or in some cases creating—documentation on the following is important.

Bank Accounts

All accounts (as well as pertinent account details) including:

  • Savings accounts
  • Checking accounts
  • Loans
  • Liens

Investment Accounts

All investment assets (along with all relevant account information), such as:

  • Money market accounts
  • Certificates of deposit (CDs)
  • U.S. Savings Bonds, treasury bonds
  • Other money market and stock market equity investments

Retirement Benefits

All retirement benefit information (along with all relevant account details), including:

  • Pensions
  • Retirement plans
  • Individual retirement accounts (IRAs)
  • Annuities
  • Military benefits
  • Social Security benefits

Insurance

All types of insurance (and pertinent account information), including:

  • Medical
  • Long-term care
  • Life insurance

Legal Documents

All legal documents, including:

  • Power of attorney
  • Will
  • Living trust
  • Any necessary witness signatures and notarizations

Personal Property

Locate all relevant personal property documents, such as deeds/mortgages/liens for all property including:

  • Homes
  • Real estate
  • Vehicles
  • Timeshares
  • Personal belongings (such as home furnishings, jewelry, collectibles)

Funeral Arrangements

Any arrangements and prepayments made

Debts and Liabilities

Any debts, including:

  • Mortgages
  • Loans
  • Notes
  • Liens
  • Outstanding accounts
  • Lawsuit settlements
  • Taxes

Anticipation of Future Expenses

Once you’ve gained a better understanding of the current financial situation, the next step is to estimate 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.

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 government agencies, you can find financial protection and support programs including:

Reimbursement for Caregiving

Allegheny County Area Agency on Aging

Tax Deductions and Credits

Internal Revenue Service

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

Tax assistance is available through a collaboration between AARP and the IRS Tax Counseling for the Elderly program. Assistance is available online or you can find an AARP Tax-Aide site near you.

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

Financial Assistance Resources

Pennsylvania Department of Public Welfare (DPW)
Phone: 717-787-1870 (Helpline)

Social Security Administration
Phone: 800-772-1213

U.S. Veterans Administration, Department of Veteran Affairs
Phone: 877-222-8387



    ©  UPMC  |   Contact UPMC  |   Disclaimer  |   Privacy Notice  |   Supplemental content provided by A.D.A.M. Health Solutions  |  Privacy and Breach Alerts