Even in these uncertain economic times, senior loved ones need quality care. You may be wondering if you or your loved one will be able to afford a senior living community. Cherrywood wants you to know that there are many options available to help you defray the costs of senior living.
Veterans Aid & Attendance Program: The Department of Veteran’s Affairs offers eligible veterans and their surviving spouses a monthly stipend to cover living and medical expenses associated with long-term care.
Life Care Funding: The Life Care Funding Group provides additional financial support for adults and their families through the sale of in-force life insurance policies to institutional funders, on behalf of the policy holder for greater than the cash value and less than the policy’s final payment benefit. There is no age minimum or policy size minimum. All forms of life insurance can qualify. For more information, visit www.lifecarefunding.com.
ElderLife Financial Services: ElderLife provides loans to adults and their families needing to finance retirement living while waiting for a home to sell or long-term care insurance or other benefits to begin. The program offers low monthly payments. For more information, visit www.elderlifefinancial.com.
Tax Benefits: The IRS allows deductions for the cost of housing and meals for adults receiving assistance with at least two activities of daily living.The adult’s condition and need must be certified by a doctor. The same deduction may apply for adults who require a significant amount of supervision due to cognitive impairment.
The IRS also allows families to claim this tax deduction if the adult needing assistance is a dependent. The IRS classifies a dependent as an adult who is related to the family or has lived with the family for an entire year as a member of the household. The adult must be a US citizen or resident and the family must have provided more than half of the total support for the adult for the calendar year.
Companion Suites: Another option is a Companion Suite. Seniors with limited financial means or concerned about living alone may choose to live in a Companion Suite*. Same-gender seniors are paired together in suites based on background or interest that can serve as a foundation for friendship. This option not only offers cost-saving solutions, but can be a great way to transition into a senior living community and make a friend.
* Participating Communities only.
Traditional Options: Many of the traditional options offered by banks, insurance companies, and the federal government are still available:
- Real Estate. A home equity line of credit might be a good solution, especially if your senior loved one owns a home free and clear. You might also consider renting the house to generate cash flow rather than leaving it vacant.
- Insurance: If your loved one has long-term care insurance, it should cover some portion or all of the costs of assisted living or skilled nursing care.
Not all options are available to all individuals.