Women on Money and Mindset: How will our finances be affected if we move a parent into our home?
Your parent might have had a recent medical problem, is in the beginning stages of dementia, or is perfectly healthy, but tired and lonely. You are considering moving this parent into your home and want to know what things you should be thinking or talking about before you make that decision. Here are a few suggestions:
Your parent might fit into one of three scenarios:
Your parent may be financially independent, active, social, and in great health. He may anticipate that somewhere down the road he will need help so moving in with you is part of his retirement plan.
Your parent may currently have enough assets to take care of his finances, but will have problems if there is a need for additional medical procedures or assistance in the home.
Your parent may only have Social Security income and maybe a small pension which makes it hard to support himself.
Your finances will be affected differently in each of those scenarios. Your independent parent would most likely have the assets to provide for his own support, while the second and third scenarios would need your financial support in some way.
First, let’s consider housing:
Is your parent going to be happy calling one bedroom his “space,” or does he need an additional room or two? Does the independent parent need their own small house on your property? Do you need to make the bathroom more senior friendly? Is it wheel chair accessible? Does the house have an area on the first floor for your parent? If changes need to be made, who is going to pay for it? Will it be paid by your parent entirely, a combination of your parent and the adult kids, a new loan or a new house jointly owned?
Other things to consider:
Will other […]