Financial Planning Resources
The discussion around financing Mrs. Sterling’s long term care needs is one that Jane would prefer to avoid. Mrs. Sterling owns her own home worth$ 800,000, as well as having another $12,000,000 in savings. Her income is ample to cover her current expenses but in order to pay for additional care, Mrs. Sterling would have to “dip into” her principle assets. Mrs. Sterling has not been willing to do that since after all, she and her husband worked very hard so that they would not have to be dependent on others. Additionally, Mrs. Sterling wants to be able to leave a legacy to her grandchildren and make sure her son Michael will always be taken care of. Just thinking about how she will approach this topic with her mother contributes to Jane’s procrastination. Understanding this dynamic, the care manager customizes the recommendations.
Mrs. Sterling admits she can no longer take care of her finances. Her eldest son Bob had stepped in at the time of his father’s death to manage her finances. With Bob’s agreement, the care manager recommended a certified financial planner (CFP) who has worked with similar families to help Steve devise a plan. The goal is to ensure that additional revenue is generated to help pay for the needed care without having to touch the principle or equity in the home. The plan also included providing his mother, in the form of a loan, with a monthly stipend to ensure that she will have enough to pay for the appropriate level of care. His siblings understand that although Steve is willing to “lend” his mother a monthly stipend, once she dies, he will be repaid by her estate, with interest..