 TITLE: Prepare Your Finances to Care for an Elderly Family Member CONTENT: Make a Plan\n-----------\nAfter you talk to your loved one, gather important paperwork and other information, and take a look at your personal finances, it's time to make a plan. At a minimum, you'll need to figure out what you can afford to do for your family member, how much it will cost, and any cultural or religious considerations that might impact your decisions.\nWhen it comes to cost, the biggest factor is where your loved one will live:\n*   By far the most expensive care option is living in a nursing home facility, which can run upwards of $90,000 per year. Nursing homes provide round-the-clock care and licensed medical supervision to residents.\n*   Next up in terms of expense is in-home care services provided by a home health aide, which can cost around $55,000.\n*   An assisted living facility can provide social activities and personal care (but not to the same extent as nursing homes). The annual median cost for this option is around $52,000.\n*   Adult day health care is another option. These centers provide light supervision and social activities to help give caregivers a break. The annual costs for this hover around $20,000.\n*   The cheapest option is likely you acting as the caregiver. There are significantly fewer additional costs associated with providing care for your own parent or other loved one at home. However, costs can add up when you factor in transportation, medical devices, food, medical bills and lost hours from work due to increasing eldercare responsibilities.\nSo what can you do to ensure you cover all your bases? First, consider seeking outside help or resources. Talk to a financial advisor or lawyer about ways you can both support your loved one and protect yourself financially from unexpected expenses related to caring for them. Get information about wills and trusts, advanced directives and access to accounts, and help your loved one establish power of attorney for finances, health care decisions and property management. Additionally, make sure to talk to your loved one and decide who will manage their money. This is also a good time to consider purchasing long-term care insurance, which might help cover some of the costs of caring for them.\nWhile it may be tempting to put off making a plan, the data is clear: The number of adults aged 85 and older—the group that most often needs help with basic personal care—is predicted to more than double by 2040. Tackling some of these issues now could save you a lot of stress in the future. END