A recent Oprah Magazine article, titled “Sanity-Saving Secrets For Caring For Your Aging Parents,” has some ideas where to look for funds to support your parents in retirement.
Here are some of those ideas from the original article:
Survivor Benefits. If your mother or father has passed away, your surviving parent may be eligible to receive survivor benefits from the Social Security Administration. For instance, a widow age 65 or older could see about $15,000 annually, if she takes advantage of this potential benefit.
- Life Insurance Settlement. This isn’t always a great idea. Why? Liquidating a life insurance policy can many times produce significantly less money than the death benefit, which can still be a great deal of money.
- Prescription Discounts, Federal Food Programs, Tax Breaks. BenefitsCheckup.org, created by the National Council on Aging, shows you how to find sources of assistance for your parents.
- The Family House. We’ve talked about this one before. A reverse mortgage gives those age 62 and older the ability to convert a portion of their home’s equity into cash without having to sell it. Talk to your estate planning attorney before doing this—appraisal fees, a credit report, title insurance and more could add up to thousands of dollars.
- Veterans' Benefits. Most honorably discharged veterans are eligible for VA medical benefits, but there is a financial cut-off and some veterans with a high income or net worth are not eligible.
These are just a few of the things to look at when considering ways to produce more cash for retirement. It’s best to speak with a qualified estate planning attorney to see what’s best for you and the specific situation of your parents.
Reference: Huffington Post, The Oprah Magazine (December 19, 2014) “Sanity-Saving Secrets For Caring For Your Aging Parents”