How to Care For Your Parents' Money While Caring for Your Parents

Copyright......Page 5
Contents......Page 9
Preface......Page 11
Acknowledgments......Page 12
1 Introduction......Page 13
The Two-Edged Sword: Emotions and Knowledge......Page 14
When Is It Time to Get Involved?......Page 16
Family Dynamics......Page 18
Being a Good Communicator......Page 21
The Journey Begins......Page 23
Part I Basic Money Management......Page 25
The Personal Cash Flow Statement......Page 27
How to Obtain Information for the Cash Flow Statement......Page 30
Final Thoughts......Page 33
3 The Balance Sheet......Page 35
The Personal Balance Sheet......Page 36
Three Financial Ratios......Page 39
How Long Will the Money Last?......Page 40
Final Thoughts......Page 42
4 Budgeting......Page 43
The Nature of Budgets......Page 44
Steps in the Budgeting Process......Page 45
Related Issues......Page 55
Final Thoughts......Page 56
5 Credit......Page 57
Credit Basics......Page 58
Credit Pitfalls and the Elderly......Page 61
Managing Credit Usage......Page 65
Dealing with Overindebtedness......Page 70
Related Issues......Page 74
Final Thoughts......Page 76
6 Taxes......Page 79
Gathering Information......Page 80
Evaluating the Need to File a Return......Page 82
Completing and Filing a Tax Return......Page 83
Special Considerations......Page 94
Tax Forms......Page 98
Is There an Easier Way?......Page 99
Final Thoughts......Page 101
Part II Protecting and Investing......Page 103
7 Insurance......Page 105
Insurance Basics......Page 106
Automobile Insurance......Page 109
Homeowner’s Insurance......Page 113
Filing a Claim......Page 118
Helping Your Parents Save Money on Insurance......Page 120
Final Thoughts......Page 121
8 Your Parents’ Investments......Page 123
Investment Returns......Page 124
Investment Risk......Page 126
Types of Investments......Page 131
Managing Your Parents’ Portfolio......Page 142
Final Thoughts......Page 144
9 Life Insurance......Page 145
The Basic Forms of Life Insurance......Page 146
The Life Insurance Inventory......Page 149
Collecting the Death Benefits on a Policy......Page 150
Estimating the Need for Life Insurance......Page 153
Your Parents’ Life Insurance Program......Page 158
Final Thoughts......Page 161
10 Medicare, Medicare Supplement, and Long-Term-Care Insurance......Page 163
Medicare......Page 164
Alternatives to Traditional Medicare......Page 170
Supplemental (Medigap) Health Insurance......Page 173
Long-Term-Care Insurance......Page 175
Related Issues......Page 179
Final Thoughts......Page 180
11 Medicaid......Page 181
Medicaid Coverage......Page 182
The Income Test......Page 185
The Asset Test......Page 187
Patient Liability......Page 191
Asset and Income Protection Planning......Page 193
Related Issues......Page 197
Final Thoughts......Page 199
Part III Consuming......Page 201
12 Housing......Page 203
Options for Living Space......Page 204
Housing Finance......Page 211
Final Thoughts......Page 217
13 Fraud......Page 219
Laws Governing Elder Fraud......Page 220
Recognizing Scams......Page 221
Common Scams against the Elderly......Page 222
Protecting Your Parents......Page 224
What Happens If Your Parents Are Victims?......Page 226
Final Thoughts......Page 227
Part IV Transferring Estates......Page 229
14 Estate Planning......Page 231
Probate......Page 232
Legal Documents to Be Used in Estate Planning......Page 235
Estate Taxes......Page 244
Related Issues......Page 249
Final Thoughts......Page 253
15 Settling Your Parent’s Estate......Page 255
First Steps in Estate Settlement......Page 256
What Does “Settling an Estate” Mean?......Page 258
Transferring Nonprobate Assets......Page 261
Transferring Probate Assets......Page 265
Essential Elements of Inheritance, Estate, and Income Taxation......Page 271
Final Thoughts......Page 283
Part V Epilogue......Page 285
16 Using the Lessons You’ve Learned......Page 287
Basic Money Management......Page 288
Protecting and Investing Your Assets......Page 294
Housing......Page 296
Transferring Your Estate......Page 297
Final Thoughts......Page 300
Index......Page 301
About the Authors......Page 306