Aging parents are often difficult to take care of, especially, if the finances of your family are not in good shape. Statistics show that almost 30% of American adults care for their parents (including financial support), which on an average amounts to about $2,400 a year. At a time when the recession has dealt a hard blow on even the strongest of economies and job losses have become the order of the day, the average amount may well be out of reach for the average individual – forcing them to abandon financial assistance to their ailing or aged parents.

So, what do you do in these trying times? Do you go broke trying to fend off ill health from affecting your parents? NO! Here are some points you may consider to tackle the financial matters while caring for parents in a positive light:

• Discuss the Situation – Most parents will be ready to discuss their financial situation once they realize what’s plaguing you. Do not hasten. Carefully note down and analyze the existing finances, retirement plans, insurance covers, etc. that have been set up by your parents. If they do not have any, it is high time to initiate one.

• Try Long-Term Care Insurance – While this may not look beneficial at first glance, it is sure to help your parents get regular medical attention and professional care. Moreover, with a one-time investment in the policy, the financial worries will subdue for the destined period of care cover.

• Reverse Mortgage – Provided your parents are not already in debt or have not mortgaged the house, you can use it for a reverse mortgage policy. This way they will get a steady flow of money till they die or move out of the house (the latter should be discouraged at this age anyway).

• Government Policies and Grants – There are numerous health care and professional care giving policies and grants available for aging parents and older people in general. Try to find out what best suits your parents’ finances and go for it.

• Professional Care – Hiring a professional caregiver may be expensive, but if you have done your homework, you’ll find lots of cost-effective professional care giving solutions around you.

With these tips in mind, caring for parents would be easier – both emotionally and financially. However, make sure you have the right documents and legal rights in place to use your parents’ finances on their behalf in case they are disabled or fall ill.

Financial matters can be tricky, especially, in case of looking after aging parents. But with proper planning and a clear insight, caring for your parents won’t be as difficult as it seems.

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Further Reading

Aging Parents Authority has recently published an article on Stressed Out and Taking Care of Your Parents.

Kay Bell over at Don’t Mess With Taxes elaborates a little further with Aging parents, ageless money issues