While we have heard studies chronicling the cost of raising a child to age 18 (more than $200,000 by today's estimates) there is arguably no price we can put on a child. This adage is especially applicable when we consider the chances of an aging parent spending extended time in a nursing home.
According to a recent Bloomberg.com report, Americans aged 57 and older have a better than average chance of spending time in a nursing home or extended care center. While there are a number of factors that play into this (e.g. faster hospital discharges, access to Medicare) most people have to consider long-term care insurance or putting money aside to pay for such costs.
But the report also noted that older Americans with children are less likely to spend time in a nursing home. Essentially, adult children are more likely to delay the transition of the parent into a nursing home, or take them into their own home to avoid the high costs of extended care. Indeed, this may mean hiring an in-home nursing service to help with everyday tasks, but the savings is considerable compared to a nursing home.
The report further noted that only 32 percent of those who stayed in nursing homes had out of pocket costs, but considering middle class retirees may not qualify for Medicare, the chances or having to pay expenses is great. As such, having a dedicated estate plan where money is set aside or insurance is purchased is essential.
The preceding is for informational purposes and is not legal advice.