Defining your family’s assets is an important part of planning for long-term care costs. You’ll want a clear picture of your family’s current financial situation and every asset your family has.
Most families depend on a combination of financial resources – including personal funds – to cover long-term care expenses. It’s not uncommon for families to initially pay for care services out-of-pocket.
It’s also not uncommon for families to have never organized their financial records or documented their assets.
But having an organized financial portfolio can help your family establish an ideal long-term care plan in several ways. First and foremost, it provides you with a thorough understanding of the financial resources already at your disposal.
What Are Considered To Be Family Assets?
Common Examples of Family Assets:
Cash & Cash Equivalents
- Checking and Savings Accounts
- Certificates of Deposit
- Money Market Accounts
- Treasury Bills
- Social Security Income
Investments
- Annuities
- Savings Bonds
- Mutual Funds
- Pensions
- Individual Retirement Accounts (IRAs)
- Retirement Plans/401K
- Stocks
- Life Insurance
- Company Ownership
Real Estate
- Primary Residence/Home
- Vacation Homes
- Rental Properties
- Commercial Properties
- Land
Personal Property
- Artwork and Collectibles
- Clothing
- Motor Vehicles
- Boats
- Electronics
- Jewelry
- Gold/Silver
- Household Furnishings
- Equipment and Machinery
Using Your Assets to Create a Budget
Creating a budget and determining exactly what your family can afford to put aside for care is critical to preserving your family assets.
Depending on which funding route you determine is the best fit for your family’s needs, you will likely need to provide documentation of what assets you have anyway. This is the case with:
- Medicaid
- Medicare
- Veterans Benefits
- Estate Planning with an Elder Law Attorney
Defining your family’s assets can also help you to understand the assets that you want to protect from long-term care costs. For example, if your family owns a cottage that you don’t want to sell to pay for your care, then planning needs to be done to protect it for future generations.
TIP: Arranging your family assets in advance can help ensure that your loved one receives the care they need when they need it. Prospective planning helps you to remain in charge of your future and ease the burden of needing to plan while in crisis mode.