Senior Care Guide
How can I decrease the cost of eldercare?
One way to reduce the cost of in-home or assisted living costs is to seek financial assistance. Your options may include investigating Medicare and Medicaid, long-term care insurance, cash value life insurance, reverse mortgage, and Aid and Attendance benefits for eligible veterans and their spouses. Also, consider the home's location, shared living options, the size of home, and level of care required. You can also check the National Council on Aging's BenefitsCheckUp to find out what programs you may qualify for. For those already in assisted living communities and who can no longer afford the rent, try asking for a reduction.
Is senior care tax deductible?
Yes. The child and dependent care credit is a tax credit offered to taxpayers paying out-of-pocket expenses for qualifying dependents such as aging parents. That includes home care or adult daycare costs, and household services such as cooking and cleaning. But they do not include the fees associated with skilled nursing facilities or assisted living homes. The credit amount is calculated based on your income and a percentage of the expenses you incur. To claim the credit, you must complete Form 2441 and include it with your Form 1040.
How much does in-home senior care cost?
Costs will vary depending on geographical location and the type of in-home adult care you need. Companion care, personal care assistance, and health care require different specialties. According to Genworth Financial, the 2021 national monthly median cost was $4,957 for homemaker services, $5,148 for a home health aide, $1,690 for adult day health care, $4,500 for assisted living facilities, and $7,908 for a semi-private room in a nursing home.
Does Medicare pay for senior daycare?
Medicare does not pay for any form of adult day care. Medicare Advantage (Part C) plans may provide partial coverage, but are not required to do so. Or Medicaid Waivers may be able to help. But because each state runs its own Medicaid program, you may need to research the funding and its requirements. The most likely to help will be a Home and Community-Based Services (HCBS) waiver.
What does an eldercare lawyer do?
Lawyers who practice eldercare law assist in the planning of wills, living wills, trusts, powers of attorney, and health care proxies. They can assist in Medicaid planning, guardianship proceedings, elder abuse cases, and can help protect an older adult's assets.
Eldercare is an umbrella term for an array of services such as medical care, assistance with activities of daily life, or housekeeping. These services are all in service to helping older adults live as comfortably and independently as possible.
Custodial care is form of long-term care that involves non-medical assistance with activities of daily life (ADL), such as cooking, cleaning, using the toilet, getting dressed, moving around, and bathing. It differs from skilled care, which can only be offered by licensed or trained medical professionals. Medicare will not cover it unless it is deemed medically necessary and is administered by an authorized Medicare provider.
Assisted living is a home for older adults or people with disabilities who require help with activities of daily living as well as access to medical care when it is necessary but who desire some level of independence. This is a level of care that is less than that offered by nursing homes or skilled nursing facilities.
Chartered Advisor for Senior Living (CASL)
This professional designation is reserved for financial advisors who help older adults maintain financial security through wealth management and wealth transfer planning. While it is still recognized by the American College of Financial Services, it is no longer offered to new students.
Financial Elder Abuse
When people take advantage of older adults, taking or benefiting from their monetary resources, that is considered financial elder abuse. Tactics often include unauthorized use of an older person's assets and fraudulently acquiring power of attorney.
Up-front costs for a continuing-care retirement community (CCRC) is commonly referred to as an entrance fee. Residents usually pay a high entrance fee followed by ongoing monthly payments. The rate varies based on factors such as the health of the person, the type of housing, occupancy rate, and the types of services being contracted.
Skilled Nursing Facility
A skilled nursing facility is an in-patient rehabilitation and medical treatment facility staffed with trained medical professionals such as licensed nurses, physical and occupational therapists, speech pathologists, and audiologists. The stay in such a center is temporary.
Explore Senior Care
IRS. "About Form 2441, Child and Dependent Care Expenses." https://www.irs.gov/forms-pubs/about-form-2441
Genworth. "Cost of Care Survey." https://www.genworth.com/aging-and-you/finances/cost-of-care.html
Medicaid.gov. "State Waivers List." https://www.medicaid.gov/medicaid/section-1115-demo/demonstration-and-waiver-list/index.html
The American College of Financial Services. "Designations and Degrees." https://www.theamericancollege.edu/designations-degrees