Are you thinking about relocating your aging parent but concerned about the cost?
You may be considering relocation due to one of these reasons:
- whether from a divorce or the death of a spouse your aging parent is living alone
- your aging parent is struggling with their mobility
- signs of declining cognitive abilities seem to be starting
Given your aging parent’s situation, distance makes it hard to check in on them and offer care.
Whether or not to move your aging parent closer to your home (or into your home) is a tough question to analyze.
There are expected expenses and unexpected expenses associated with a move.
But some changes from the move have no price tag, such as their sense of independence and the impact on your family.
Even if it makes sense to you to have your parent closer, it may take them away from their normal activities and friends.
Keep your parent involved in the decision-making.
Share several housing options with them so they can contribute to the decision instead of being told what to do.
Having your parent closer will increase your responsibilities and disrupt your current routine.
Your spouse, kids, job, and other obligations may be adversely impacted by the shift of your time.
On the other hand, the change may strengthen relationships by creating more family moments.
Address all of these concerns with everyone impacted before a move.
Open conversations may not resolve every situation, but at least you can begin to formulate a solution.
As for relocation costs, estimate the following expenses:
- cost to prepare their home for sale (repairs, renovations, decluttering)
- relator fees and other closing costs
- packing and shipping expenses (you may need to hire someone to pack your parent’s belongings and transport them)
You may need to review your parent’s finances to determine if they can afford these expenses or if you need to supplement them.
Other tasks to consider when relocating your aging parent include the following:
- Ensure their Medicare plan will cover them in the new location, even if it is to another county in the same state. Medicare open enrollment ends on December 7.
- Update mailing addresses for their income sources, such as Social Security and pension (now is a good time to encourage direct deposit).
- Move their financial accounts if their bank is not accessible in the new location.
- Update information on insurance policies and estate planning documents.
- Change their car registration (if they are still driving).
- Find new physicians if they cannot commute to their existing providers.
As you go through the planning process, you’ll probably identify additional tasks.
Discuss your plan with other family members to identify gaps.
Once you estimate the overall relocation expenses for your aging parent, set aside at least 20% more for unexpected costs.
This cushion will help reduce stress as you begin the move.
Any type of move can be stressful. Manage your expectations and recognize that things may not go smoothly.
Stay focused on your objective. And more importantly, keep your sense of humor.
(Update to original post from November 10, 2020)
ABOUT THE AUTHOR:
Niv Persaud, CFP®, CDFA®, RICP®, is a Managing Director at Transition Planning & Guidance, LLC. Life is more than money. It’s about living the lifestyle you want and can afford. For that reason, Niv consults with clients on money, life, and work. Her approach capitalizes on techniques she learned throughout her career, including as a management consultant, executive recruiter, and financial advisor. Her services include developing comprehensive financial plans, divorce financial reviews, and retirement plans. Niv actively gives back to her community through her volunteer efforts. She believes in living life to the fullest by cherishing friendships, enjoying the beauty of nature and laughing often — even at herself. Her favorite quote is by Erma Bombeck, “When I stand before God at the end of my life, I would hope that I would not have a single bit of talent left and could say ‘I used everything you gave me.’”