Taking an Active Role in Planning For the Care of Family Members

Whether it is due to a lack of asset protection planning or a result of the current economic condition, many individuals fail to plan for their own financial future adequately, let alone for the future support of their parents or other family members. Some tips for individuals who know they will be responsible for the future support of family members (e.g. parents, grandparents, siblings, etc.) are below:

• All parties involved should create an estate plan. Though there will be a cost involved in creating an estate plan for both the supporter and those he will support, this cost will be less than the cost of probate, disputes, and litigation.
• An examination of Medicare and Medicaid asset protection planning can help a family member who requires extensive coverage to maintain their assets instead of losing their assets to the state.
• Long-term coverage on elderly family members can help reduce the costs of high-quality long-term care that can reach six figures a year.
• Be sure to inspect and review the health care coverage for any potential dependents to determine what that the coverage provides given the current healthcare costs. Supplemental plans can help protect dependents and their supporters from unexpected costs.

See Ike Devji, Why Failing to Plan for Extended Family’s Finances Creates  Liability for YOU, Pro Asset Protection, Dec. 2, 2011.