When caring for an aging parent, you are likely not just their caregiver. You take on many other roles such as cook, housekeeper and financial manager. Today, Home Care Assistance of Oklahoma City is going to share some of the most common financial terms that are encountered by family caregivers. Knowing their meaning will help when making important decisions regarding your aging loved one’s care and future quality of life.
- Assets and Liabilities – Discuss assets and liabilities with your loved ones while they still handle their personal finances. Knowing what is owned (assets) and what is owed (liabilities) allows you to pay legitimate bills like the rent or mortgage, car payments, and insurance coverage. Assets include jewelry, investments, real estate, and pensions.
- Durable Power of Attorney – This legal document is enacted by a mentally competent family member (principal). It gives another person (agent) the authority to handle financial and/or health decisions immediately or in the future. The agent’s financial decisions are binding on the principal and any successors.
- Reverse Mortgage – A reverse mortgage is a situation where the lending financial institution pays money to the property owner from the home’s equity. The loan is due and payable if the owner dies, sells the home, or no longer can claim the home as the principal residence. In some instances, reverse mortgages can be used to help pay for assisted living or hourly or 24 hour home care in Oklahoma City.
- Executor – Responsibilities of the executor include distribution of property, locating assets, and paying ongoing expenses like utility bills and mortgage payments. The family caregiver can assist with locating assets, vital papers, and verifying bills.
- Medical Deductible and Copayment – The medical deductible is part of making an informed decision for healthcare and prescription drugs. It is the required payment by the patient before insurance, including drug plans and Medicare, start paying for care. Copayment is a separate amount the patient must pay for medical care, supplies and services like doctor’s visits, hospital outpatient visits, and prescriptions. It is usually a specified dollar amount rather than a percentage of the cost.
Improve your ability as a family caregiver by knowing how the above financial terms affect your loved one’s health and wishes. And if you need help caring for an aging parent or loved one, don’t hesitate to reach out to Home Care Assistance. Located in Edmond, OK, we serve the local community as well as Oklahoma City and surrounding communities. For more information, call 405-285-4191 and schedule a complimentary, no-obligation consultation with one of our friendly Care Managers.