Alzheimer's Financial Issues

[hotcoffee]

My mother passed away. She was dedicated to her children. She always said when she passed she wanted to leave behind some financial benefit to two of her daughters, her son, and her grandson who lived with her for all of his life. A long bought with Alzheimer's disease tore through the my father's pension, stocks, home equity, savings, and numerous insurance accounts, leaving nothing for the children she loved so very much, after scraping, saving, and planning all her life. We all know she loved us and there were so many intangible gifts she gave us.

This just might be another gift... the knowledge that this could happen to our families.... and the need for a fiscal plan to help our children avoid the financial devastation her family has suffered.

This leaves me looking for a plan... a method... to avoid devastating my husband and children. I'd like to see the will, her living will, and the expenses so that I might find the holes in her plan and make a better one for my family.

So those who are reading this.... I would love to share this information with you if you are interested. Please send me an instant message if you have any information you would like to share, or if you would like to see my plan and use it.

[migtig]

I recommend checking out a trust option with your finances.

You can do a living will for free online. You just need to ensure it's on file just about everywhere - doctors, hospitals, long term care facility.

Pre-pay for your funeral. It becomes an emotional situation for your loved ones to buy you the "best". Don't put that extremely emotional and quite costly task upon your loved ones. You can pre-pay in a logical, non-emotional state of mind and save not only money but emotional drama over your arrangements.

[kwillia]

I've seen what you just experienced to be the norm. With the advances in medicine that help people live longer even though the are ravaged by medical conditions, the cost of keeping them alive and cared for does eat up everyting they had put away. You were lucky that your mom had so much money set aside for you and your siblings to use to care for her even though it meant no inheritance left for you guys. In many cases today, the elderly parent has nothing left and the children are left to find funds from their own family budgets to support the cost and care of maintaining a sickly elder.

Sorry you didn't get an inheritance and best of luck with trying to set things up so you kids can have an inheritance from you. With the economy the way it is and with such a dim economic future... I have no ideas on how to do such a thing other than large insurance policies that get more expensive as you get older.

[ProfMoneyWise]

Originally Posted by migtig

I recommend checking out a trust option with your finances.

You can do a living will for free online. You just need to ensure it's on file just about everywhere - doctors, hospitals, long term care facility.

Pre-pay for your funeral. It becomes an emotional situation for your loved ones to buy you the "best". Don't put that extremely emotional and quite costly task upon your loved ones. You can pre-pay in a logical, non-emotional state of mind and save not only money but emotional drama over your arrangements.

Great advice. Two tweaks:

Have a lawyer perform a review of any documents you draft yourself.

Pre-plan but do not pre-pay. Set-aside whatever money you would pay into a separate account you control. Let businesses in the funeral industry do what they do best. Being a bank is not their business.

Folks in Calvert will recall the Cemetery issue some endured not to long ago.

[tommyjo]

Originally Posted by hotcoffee

My mother passed away. She was dedicated to her children. She always said when she passed she wanted to leave behind some financial benefit to two of her daughters, her son, and her grandson who lived with her for all of his life. A long bought with Alzheimer's disease tore through the my father's pension, stocks, home equity, savings, and numerous insurance accounts, leaving nothing for the children she loved so very much, after scraping, saving, and planning all her life. We all know she loved us and there were so many intangible gifts she gave us.

This just might be another gift... the knowledge that this could happen to our families.... and the need for a fiscal plan to help our children avoid the financial devastation her family has suffered.

This leaves me looking for a plan... a method... to avoid devastating my husband and children. I'd like to see the will, her living will, and the expenses so that I might find the holes in her plan and make a better one for my family.

So those who are reading this.... I would love to share this information with you if you are interested. Please send me an instant message if you have any information you would like to share, or if you would like to see my plan and use it.

A living will does nothing to prevent the destruction of a lifetime of savings from a long term health issue. Neither does a will...not does a living trust.

Never seek advice from or use free legal forms from online for issues of this complexity. (For that matter don't use internet posting boards for any personal financial issues)

The advice provided that you should not prepay for a funeral is offered by someone who is obviously unfamiliar with the Medicaid rules...or by someone who views such things thru a narrow prism that does not allow for viewing the larger picture.

Simply put Southern Maryland Online is not the place to get answers to the questions you seek. This is a complex and intensely personal situation (I've been thru it with relatives). Use a QUALIFIED estate planning attorney, a QUALIFIED financial planner and a QUALIFIED tax professional.

[kwillia]

Originally Posted by tommyjo

A living will does nothing to prevent the destruction of a lifetime of savings from a long term health issue. Neither does a will...not does a living trust.

The advice provided that you should not prepay for a funeral is offered by someone who is obviously unfamiliar with the Medicaid rules...

True, true, true and true. If your parent has any financial means at all of providing for their own care than that is what the money is used for...every last penny.

[ginwoman]

Originally Posted by ProfMoneyWise

Great advice. Two tweaks:

Have a lawyer perform a review of any documents you draft yourself.

Pre-plan but do not pre-pay. Set-aside whatever money you would pay into a separate account you control. Let businesses in the funeral industry do what they do best. Being a bank is not their business.

Folks in Calvert will recall the Cemetery issue some endured not to long ago.

We were required to pre-pay when we applied for Medical Assistance for my father.

[migtig]

Originally Posted by ProfMoneyWise

Great advice. Two tweaks:

Have a lawyer perform a review of any documents you draft yourself.

Pre-plan but do not pre-pay. Set-aside whatever money you would pay into a separate account you control. Let businesses in the funeral industry do what they do best. Being a bank is not their business.

Folks in Calvert will recall the Cemetery issue some endured not to long ago.

If you go through a legit service, and you pre-pay for your funeral, your money is placed in a savings of sorts, it is insured. It gains interest until your death, so if prices go up, your arrangments are still covered with no additional or very minimal expenses. Or if costs go down, your family could get a small check from the fund.

Like anything else, you need to use some common sense and check things out, but you shouldn't tell people not to pre-pay for a funeral. It's one of the best things they can do for their loved ones.

[ProfMoneyWise]

Originally Posted by migtig

If you go through a legit service, and you pre-pay for your funeral, your money is placed in a savings of sorts, it is insured. It gains interest until your death, so if prices go up, your arrangments are still covered with no additional or very minimal expenses. Or if costs go down, your family could get a small check from the fund.

Like anything else, you need to use some common sense and check things out, but you shouldn't tell people not to pre-pay for a funeral. It's one of the best things they can do for their loved ones.

Let me clarify. Put your plans in writing but keep your money as yours.

You are your best money-manager. Put the money away yourself. Call it funeral. Put your plans in writing.

Here's a couple from a gentleman I follow, Dave Ramsey:

QUESTION: Michelle asks Dave about prepaid funerals. She heard they were bad, but doesn’t know why. She does, though, after talking to Dave.

ANSWER: My biggest gripe is that it’s a bad place to put money over a long period of time. If you’re 40 and invest money in a mutual fund rather than buy a funeral like that, you’ll have about $500,000 when you die at age 90. Who are you, King Tut? Make prearranged funeral plans, where you pick everything out and organize it for the burial. Fill out the paperwork, so no one has to make decisions while they are emotional. Then when the death happens, everything is taken care of, and you have the money to afford it. You don’t save by prepaying.


QUESTION: Chris on Twitter wants to know if prepaying things is a good investment against inflation. Dave says no, but it does ward off inflation.

ANSWER: No. It’s not a good investment, but it does work against inflation. The inflation rate of those items is what your rate of return is. The inflation rate on funerals is about 4%, so you’re making 4% on your money. The inflation rate on college is about 7%, so you’re making 7% on your money, which compared to 1% in a savings account right now is pretty good, but it’s still not good enough for college. So if you’re saving at the rate of inflation by prepaying it, you’re not making any money on your money. You’re just breaking even. What you need to do instead for college is start saving in a good mutual fund in an Education Savings Account (ESA) and earn more than 7%. As far as funerals go, you need to just have an estate. You need to have some money to pay for your funeral. They’re not that expensive if you’ve saved up some money and you have some investments. But a prepaid funeral is not something I suggest. Prepaid college is not something I suggest. Stay away from those things.

[ProfMoneyWise]

Legacy Drawer: Keep Your Family Prepared - daveramsey.com

Give this Legacy Drawer idea some thought also.