Our recent experience with COVID-19 has been a reminder to all of us, how precious life is. It has caused us to re-evaluate what is important and also realise how fragile or susceptible to illness, our ageing parent can be.
Whilst we do not wish to think about parents getting older and not being part of our lives, we must plan for their well-being.
At Longwave Wealth, we have assisted clients to plan for their parents older years and whilst they may all have different strategies depending on their circumstances, what is consistent, is that the earlier you commence planning, the better outcomes you will have. Having no plan at all can lead to adverse financial consequences and unhealthy family relationships.
Every person SHOULD plan for their ageing parent because of the following reasons:
Preservation of your family story
If you do not have a plan for ageing in place, it can result in family conflict and arguments among children about who should be doing what activities and how they should be compensated for them. A process and informed discussion about the options available and who can do what to share the load can create a more harmonious family relationship.
Provide clarity & direction for the family
There are many options available for assisting your parents. These all have different financial, tax and estate planning consequences and need to be explored, to see which one is appropriate for your family circumstances.
Guidance for financial planning
The costs of aged care are increasing and investment decisions made today can have an impact on the aged care options available, if and when required. The process of exploring the options available and seeing what is best for your family will assist you in setting financial goals and objectives.
Remove stress and fears
Matters of the heart can lead to high emotions. If planning is not completed, decisions will be made that may result in adverse financial outcomes. Planning ahead without emotions will provide the best financial outcomes.
Age with grace and dignity
There is nothing worse than seeing a family torn apart by uncertainty and mistrust. These emotions will flow over to your parents and affect their final years of life.
"Making a decision to commence planning for the ageing of our parents is hard but important. It isn't about which aged care facility to choose or where to live because these decisions are outcomes of a well thought out planning process."
The plan should be reviewed each year and adjusted according to the health of your parents as well as other mitigating factors, such as legislation and investment markets.
What is most important is the plan is in place, that can then be reviewed and discussed by all family members on an ongoing basis.
We take into consideration any concern our clients have for the ageing of the parents when we prepare their "Financial Lifeline".
Also, we have prepared a checklist to help you plan for your parents "twilight years". Please download using the form below and don't hesitate to contact us if you have any questions.
Download your checklist - Plan for Your Parents Twilight Years
Once you have prepared an aged care plan for your parents, you can be confident that if and when it is required, your family knows what will happen and your family story will be preserved.
General Advice Warning: Any advice on this site is general advice only and does not take into account the objectives, financial situation or needs of any particular person. It does not represent legal, tax, or personal advice and should not be relied on as such. You should obtain financial advice relevant to your circumstances before making any decisions.