Elder care planning? A helpful checklist will make it easier.

Recently, my parents took the next step in their retirement journey and moved into an assisted living residence. This decision was not an easy one and, like many going through this transition, my parents and family have experienced the highs and lows that come with it.

I’m grateful that my parents took steps to ensure they were prepared. Their small town, rural background instilled a sense of self-reliance that they have carried throughout their lives. They always knew how important it was to think about the future, and thanks to their planfulness, and the foresight to buy long-term care insurance, an annuity and life insurance, this tough process was a little easier. I couldn’t help but imagine how much harder retirement would be if they had not made these preparations.

Regrettably, being unprepared is the case for most Americans.

Only 27 percent of older affluent adults currently have long-term care insurance for themselves or someone else, and only 42 percent are confident in their plan to pay for long-term care expenses, according to a recent poll by the Nationwide Retirement Institute*.

Elder care planning helps define a senior’s wishes and enables family members and/or caregivers to handle the physical, personal, and financial affairs of an aging senior entering the later stages of life. Long-term care is just one aspect of this planning, but it’s an important one. It’s a conversation that should ideally include family members or designated friends. Unfortunately, families often avoid discussing these issues, due to the uncomfortable nature of the topic. 

The time to plan is now

Last-minute planning can lead to potential mistakes and lost opportunities. The process takes time and should be done step by step, ideally while seniors are still able to make their own decisions. The goal here is to help parents plan and make the best possible choices, while taking extra care not to make the decisions for them. Even if your parent or loved one has lost mental capacity and it’s up to you to make decisions for them, they should still be allowed as much input as possible. 

The elder care planning process includes three important steps:

1. Gathering information
2. Having “the talk” as a family
3. Selecting the right solutions

In this column I’ll discuss the first step: Gathering information. I’ll revisit steps two and three in subsequent posts in the weeks to come.

Step 1: Gathering the information

There are quite a few “ins” and “outs” to planning for elder care. When the time has come to transition the decision making, it’s essential that all legal documents are up to date. This information (as well as anything related to identification, health and finances) needs to be in the possession of the family member or members acting as an advocate. Additionally, you’ll need the name(s) and location(s) of banks where accounts are held as well as contact information for the elder’s financial advisor.

One thing my family found helpful was a laminated card with all of my parents’ passwords for on-line accounts. It’s a good idea to make sure anything with sensitive information is properly secured in a safe or lock box.

Below is a helpful checklist that outlines some of the information that should be up-to-date, organized, and available to designated family members.

There’s a lot to think about when it comes to planning for elder care, which is why it’s important to start now before the need arises. Even if your parent has a plan, you’re likely to find gaps when using the checklist above. Better to know what’s missing now, and what can be addressed before it’s too late. Parents who are healthy have more options and can make far better decisions than those in poor health who – as a result of delay – might find solutions like long-term care insurance are no longer affordable or available.

I’ll share another column soon where I’ll walk you through some questions a family should think about when they “have the talk” about their parent’s elder care needs and wishes. After that, I’ll address some of potential solutions your family can consider.

*Survey conducted online by The Harris Poll on behalf of the Nationwide Retirement Institute between Feb. 5 and 22, 2018 among 1,007 U.S. adults age 50 or older with a household income of $150K or more.