Talking to clients about solutions for funding long-term healthcare is rarely an easy matter: the subject itself is emotionally disturbing and difficult to face.
Few people relish a discussion of the possible incapacitation or suffering of loved ones. The issue won’t go away, though, and people who have living parents must face additional concerns: if their parents require LT care, the kids may be required to foot the bill.
The matter has already been discussed by the courts. In the linked article, we learn that 28 states have filial responsibility laws on their books. Under these laws, adult children can be held responsible for their parents’ long-term medical expenses. This makes good moral sense, but can nevertheless create a very real financial shock if the children aren’t prepared.
In Pennsylvania a few years ago, a court ruled that an adult son was responsible for his mother’s $93,000 medical bill. At the time of the hearing, Social Security was reviewing the bill, but had made no decision. Interestingly, two other children were not held to responsibility. We assume the son felt his mother was worth it, but wonder if he had the resources to foot the bill.
Long-term care policies were once the preferred solution, but nowadays they’ve become so expensive that many carriers no longer offer them. Fortunately, so-called hybrid annuity-LT care products are available that provide long-term care coverage at an affordable price. These products offer an appealing feature: if the long-term care benefits are never used, a death benefit will remain in place – in other words, the investment can never be perceived as wasted.
For more information, please read:
Who’s Responsible for Your Parents’ Nursing Home Cost? It’s Not Who You Think | ThinkAdvisor