If you have a parent, a grandparent, or another loved one who has retired and has no active income, it makes sense to have concerns about whether they will be okay financially. When an aging family member is not earning, and they also have no savings, it can be particularly worrying. You may find yourself wondering how they will be able to afford the day-to-day necessities of life, let alone major essential costs like medical care or future eventualities such as a nursing home.
Speaking to aging family members about their finances may be difficult, but it is essential if you want to help them learn about and take advantage of the options they might have. Once you and any other relevant parties have the financial details you need, you can begin making decisions about how to assist your older relatives with the costs they need to cover.
Government Programs
 There are several age and income-based government programs available that function to assist older people who are in financial need.
From a healthcare perspective, the best-known programs are Medicare and Medicaid. Medicare generally helps people over the age of 65 with the costs of medical care, while Medicaid assists people of all ages who have a low income.
When it comes to the costs of things like food, housing, and even transportation for running errands, there are several municipal, county, and state programs that may be able to help. With a little research, you may find a surprising number of options that are available to people in situations like that of your loved one.
Things to Consider When Giving Money Directly to Your RelativeÂ
The government programs are often there specifically to help people who are in a place of financial need. This is an important thing to keep in mind if you’re thinking about using your own money to assist with your loved one’s costs.
Rather than giving them direct cash gifts or adding them to your bank account, which will be counted as assets your loved one has access to, it might make more sense to pay for some of their expenses directly. This way, you know that their needs are being covered, but no cash changes hands. You’ll be less likely to hurt their chances of qualifying for government assistance.
Other Financial OptionsÂ
If you aren’t concerned with eligibility for government programs, there are a few other options you can consider:
- Immediate income annuity – This is an annuity that allows you to pay an insurance company a lump sum to begin, with your loved one as a beneficiary. Thereafter, the insurance company pays your family member a pre-determined amount of money each month.
- Tapping life insurance – If your relative has a whole life policy, they can consider tapping the cash value as a source of retirement funds.
- Reverse mortgage – If your family member owns their home, they might be eligible for this loan. It’s a type of loan that would allow them to convert some of the equity of the home that they live in into cash.
Speak to a Brandon Elder Law Attorney
To understand your aging relative’s best options, it can be helpful to speak to our experienced Brandon elder law attorneys. We can help you weigh the variables and come up with a plan that will best suit you and your loved one. To schedule a consultation, simply call (813) 438-8503 and mention this article.