Tax laws provide breaks for buying and using long-term care insurance, and the use of living benefits from a life insurance policy. A caregiver also may be able to claim the aging adult as a dependent if they provide more than half of their support and satisfy other dependent rules such as income limitations. Adults who share caregiving responsibilities with others, such as siblings, may need to rotate the expenses and the deductions claimed each year. Taxes also should be kept in mind when selling investments to provide more ready cash. Take care of yourself.
Caregivers often sacrifice their own needs.
A caregiver's failure to save for their own retirement, carry adequate life and health insurance, and have basic legal documents could force the caregiver to later rely financially on others. Seek professional help. A Certified Financial Planner Practitioner can help with cash flow, taxes, investments and overall financial planning. An attorney can review legal documents and government assistance rules, as well as set up any necessary trusts. A geriatric care manager can help find appropriate living facilities or at-home care.