Learn about financial planners who specialize in senior care, where to find the most affordable care, and how to evaluate nursing homes and in-home care options.

Frequently Asked Questions
  • 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.

Key Terms

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Page Sources
Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy.
  1. IRS. "About Form 2441, Child and Dependent Care Expenses." https://www.irs.gov/forms-pubs/about-form-2441

  2. Genworth. "Cost of Care Survey." https://www.genworth.com/aging-and-you/finances/cost-of-care.html

  3. Medicaid.gov. "State Waivers List." https://www.medicaid.gov/medicaid/section-1115-demo/demonstration-and-waiver-list/index.html

  4. The American College of Financial Services. "Designations and Degrees." https://www.theamericancollege.edu/designations-degrees