I’m concerned about caring for my elderly parents
In the coming years, many Canadians will face the emotional and financial challenges of looking after elderly parents who need special care. Preparing for that possibility today can bring peace of mind and a better quality of life for your family tomorrow.
Caring for an elderly parent — particularly someone who is ill — is never easy. And in the case of parents who don’t have sufficient assets, contributing to their care and well-being can also result in new and unexpected financial responsibilities. You could even end up being part of the “sandwich generation” — caring for your elderly parents while still supporting your own children.
While medical advances may mean that your parents can expect to live longer lives than their parents did, they may still face medical care, home care and long-term medical expenses that can quickly impact their wealth. If that happens, are you in a financial position to step in?
Expert guidance when you need it most
This is where your BMO Nesbitt Burns Investment Advisor can help. Your Investment Advisor can work with you to determine whether your parents have the financial resources to meet their needs, and the best ways for you to offer assistance.
If your parents’ financial future is cloudy, your Investment Advisor will help you develop a financial plan and investment strategy that will allow you to contribute to their care, while still meeting your own financial needs. Your Investment Advisor can also provide guidance on financial and legal measures that can help you manage your parents’ finances. These include enduring powers of attorney for property (mandates in Quebec), which will allow you or another party to manage a parent’s finances if he or she becomes incapacitated.
This is also a good opportunity to discuss with your Investment Advisor how you can take steps now to ensure that you don’t become a financial burden to your children when you grow older.
Advice in action: Randall and Kevin
Randall and Kevin are an Ontario couple who each have elderly parents. Randall’s parents are active and healthy and have considerable financial resources. However, Kevin’s father is suffering from a serious illness that has taxed his parents’ finances. Randall and Kevin are concerned that Kevin’s father may need home care or will have to move to a long-term care facility, neither of which his parents can afford.
Randall and Kevin agree they’ll do whatever is necessary to help Kevin’s parents, including dipping into their personal savings. But they’re concerned what might happen if either of them should become ill or pass away or if Randall’s parents also need financial assistance.
A BMO Nesbitt Burns Investment Advisor can help assess Kevin’s parents’ immediate financial situation, as well as Randall’s and Kevin’s own finances. An Investment Advisor can work with the couple to determine whether they’ll have enough to contribute to parent care, while continuing to meet their own financial goals. An Investment Advisor can help structure their investments to meet the potential near-term need of helping Kevin’s parents, and make legal arrangements such as an enduring power of attorney for property (a mandate in Quebec) that may be necessary to help manage Kevin’s parents’ financial challenges. Their Investment Advisor can also help them develop an estate plan to address the potential long-term care needs of both their aging parents, including up-to-date wills and insurance for each partner.