Planning is key to a less stressful, more fulfilling life. When it comes to assisted living costs, knowing what’s in store can help you map your assisted living journey.
Whether you’re assessing assisted living qualifications and costs for yourself or someone you love, it’s wise to understand the basics and develop a game plan. Discover our tips to plan for the cost of assisted living.
5 Tips on How to Plan for Assisted Living Costs
1. Cost clarity
2. Assess your assets
3. Explore options
4. Delegate
5. Make a budget
1. Cost clarity
The cost of assisted living varies widely in both their rates and how the charge for services. Many require an upfront entrance fee that you’ll need to factor into your loved one’s overall assisted living costs. Creating a realistic financial plan depends upon knowing what your monthly assisted living expenses will be.
At The Birches, we’re dedicated to ensuring the families who choose us understand our rates and what's included, so they can budget with confidence and clarity.
We don’t require a fee to join our community, and our commitment to rate transparency and open communication means you’ll always feel respected and aware of our assisted living costs and what’s included.
2. Assess your assets
What existing assets can you and your loved one apply toward assisted living costs? Chances are good you have ways to offset and cover the costs of assisted living.
This may include funds from the sale of your loved one’s home and their possessions. Many people who transition into assisted living find it helpful to rightsize their belongings to better fit their new lifestyle.
Existing funding options may also include your loved one’s savings, investments, pension, or other work or veteran’s benefits.
A financial planner or elder law specialist can help you assess your funding sources and develop a plan to use them to cover the costs of assisted living.
3. Explore options
Your loved one may have additional options to help fund their assisted living and care.
Possibilities include life insurance conversion, long-term care insurance, and reverse mortgages. Depending on your situation, it may also involve options like the Veterans Aid and Attendance Benefit. This federal benefit is offered to qualifying veterans and their surviving spouses.
Research these options to learn the pros and cons of each of these possible sources - and discuss them with your loved ones and trusted professional advisors to discover if any are right to help fund your assisted living costs and needs.
4. Delegate
Many assisted living residents rely on their loved ones to handle their monthly bills and finances. Regardless of who will be taking the reins in paying the cost of assisted living, it’s important to delegate ongoing financial roles and responsibilities clearly and early on.
This way, there will be no confusion, and your loved one’s assisting living transition process will be easy and carefree.
This is another reason why connecting with a trusted financial planner or elder law specialist can be a positive step in this process. They can help you craft a personalized assisted living budget that works for everyone.
You can also connect with The Birches team for guidance during this time. We’re honored to support you throughout your assisted living journey. We’re here for your loved one and for you!
5. Make a budget
Now that you understand your assisted living costs, it’s time to create a monthly budget.
First, collect the information needed. This may include paperwork from your chosen community, bank information, deeds and mortgage papers, insurance policies, monthly bills, Social Security information, and investment holdings.
Having these documents on hand will make the budget planning process much smoother!
It’s also important to involve your loved one in the process. Plan a time for everyone involved to get together to discuss your assisted living financial plan.
Don’t Wait to Start Planning for Assisted Living
Assisted living also has many benefits that can’t be quantified. These include enhanced quality of life, improved social opportunities, and improved nutrition.
When your loved one calls The Birches home, they’ll receive all they need to live a meaningful life on their own terms.
Our caring team is here to support you, too. We’ll provide the information, resources, and guidance you need to plan a successful assisted living transition.
Download our free Guide to Financial Planning for Senior Housing and Care today to learn more about planning for assisted living costs.
