As more seniors live well into their 80s, 90s, and 100s, the need for long-term financial planning becomes more imperative. Particularly, those stricken with deteriorating health or mental diseases must deal with a multitude of costs such as living arrangements and medical care. In the case of dehabilitating mental diseases such as dementia, arrangements should be made as soon as possible while they still can be made.
Perhaps the most important decision to be made is where you intend to live in your elderly years. If you already have a home that is paid for, it is still important to have money saved to cover the costs of health care. In many unofrtunate circumstances, seniors have been forced to sell their homes to sover these costs. Often times, living alone in a house can be dangerous and arrangements should be made for home health care or residential care. All of these factors should be considered when planning for your future.
Make sure to watch out for elder financial abuse by having an enduring power of attorney. It is a good idea to require the attorney to provide full transperancy of financial information with those involved. If a family member can demand a financial update from your attorney it makes stealing and other abuses much harder to commit. Use your power of attorney to get someone to do the banking for you rather than have a joint account. This reduces the tension and complications involved with sharing finances with family members and loved ones.
The need for compassionate, independent legal and financial advice is just as critical at this stage of life as it is at any other. The difficulty lies in the loss of control that some seniors experience because of failing health or simply by being too trusting.
Source: The Globe and Mail
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