Pictures of chickens, flowers, wheat, a boy looking through a magnifying glass, irrigation pipe, soybean pods, and fruits and vegetables.

Cooperative Extension Service

Search | Publications | Jobs | Personnel Directory | Links
County Offices | Departments

About Us

Find Us

For the Media

Agriculture

Business & Communities

Families & Consumers

Health & Nutrition

Home & Garden

Natural Resources

4-H Youth Development

4-H Programs
4-H State Policy Handbook
Kids Go-4-It
Youth Education
Volunteer Organizations
C. A. Vines 4-H Center

Life Skills Evaluation
Links
Newsletters

Public Policy Center

For Faculty & Staff

Giving

Dale Bumpers College
of Agricultural, Food &
Life Sciences

Division Home

Agricultural Experiment
      Station Home

Cooperative Extension
      Service Home

Printer Friendly (PDF)

Financing Long-Term Care
Identifying Financial Security Goals for Later Life: Critical Conversations
Handout 4

What is most important to you when thinking about financing long-term care and financial security issues in later life? If you have a spouse, do you know what is most important to them? Have you really taken the time to think about, share and discuss your goals? Do your children or other family members who might be involved in carrying out your wishes know what is most important to you?

Knowing what is and isn’t important can help guide decisions about which alternatives for financing long-term care should be considered. The following goals are often identified as important when making decisions about financing long-term care:

• Remaining financially independent

• Maintaining control

• Maintaining privacy

• Involving family members

• Using government resources

• Leaving an inheritance

Why sort out goals? "Just tell me what the best alternative is." That’s what many people ask, but what’s "best" depends on what is most important to accomplish for the family members involved. Sorting out what is most important means thinking and talking about very personal attitudes and beliefs. For most family members, deciding what is important goes beyond a dollar and cents calculation and knowing what is legally allowable. Regretfully, many people fail to sort out what is most important to them when making decisions about the use of finances in later life. As a result, misunderstandings, wrong assumptions and conflicts among family members can result.

Not everyone will have the same goals. First, take time to identify what is important to you. Then compare your answers and priorities with your spouse or other involved family members. It is very common for parents to think quite differently than their adult children about what is most important. Finding out where you agree or disagree can help guide future decisions.

Worksheet A

For Individuals Facing the Risk of Financing Long-Term Care

Directions: The following questions will help you identify which, if any, of these goals seem to be a priority for you. There may be other goals you want to accomplish that need to be added. In almost all cases, not all goals can be accomplished at the same time and decisions must be made about which goals are more important than others.

Read each question and identify how strongly you agree or disagree. If the question does not apply to you or your situation, simply leave it blank. It is best if you answer the questions on your own before discussing them with others in your family.

Potential Financial Security Goals

Remain Financially Independent		Agree	Disagree
1.	As long as I have money, I want to pay my own way.
2.	If possible, I’d like to stretch my resources to last until the day I die.
3.	If I can no longer live in my home, it should be sold to help pay for the cost of my care.
4.	I’d prefer to pay for my own care and only rely on the government as a very last resort.
5.	I want to protect my spouse from becoming financially dependent on others.
6.	If I went on Medical Assistance, my spouse would feel financially secure with the income and asset allowances.
7.	My kids or grandkids should not be expected to help pay for my care.

Maintain Control		Agree	Disagree
1.	Planning in advance for long-term care "what ifs" gives me some peace of mind.
2.	It’s impossible to predict or plan ahead for financing care; I’d rather wait and see.
3.	I’m willing to take the financial risk that I won’t need expensive long-term care.
4.	No matter what my physical health, I want to be in charge of my finances.
5.	I’ve shared my wishes with others about how I want my money to be used.
6.	I have someone I can trust to make my financial decisions if I’m not able.
7.	It’s important to put my wishes in writing so my financial wishes will be carried out.
8.	I can trust family members to carry out my wishes, even if they might not agree with them.
9.	If I give money to others, I want to be able to influence how it will be used.

Maintain Privacy		Agree	Disagree
1.	My financial affairs are my business, not anyone else’s.
2.	My kids should be informed about my financial situation and wishes.
3.	I feel comfortable sharing my financial situation with professionals (attorney, financial planner).
4.	There are individuals who I want to involve in helping make my financial decisions.
5.	I’m unwilling to reveal my financial situation, even if it means not qualifying for government programs (e.g., Medicaid).

Involve Family Members		Agree	Disagree
1.	If I can no longer pay for my care, I expect my family members to help pay the costs.
2.	There are limits to how much my kids will be able to help financially with the costs of my care.
3.	I would rather have family members pay for my care than rely on the government to pay.
4.	I have family members who are willing and available to provide unpaid care.
5.	I have family members who are willing to provide care for some type of pay or reward.
6.	I would like to involve family members in decisions about my long-term care.

Use of Government Resources		Agree	Disagree
1.	It feels good to know Medical Assistance will pay for my long-term care when my resources are basically gone.
2.	If I need long-term care, the government should pay no matter what my income or assets.
3.	It’s important to me to be able to transfer my assets to others within the allowable limits to be eligible for government sources of payment for long-term care.
4.	As a taxpayer, it is my right to use government programs to pay for my long-term care.
5.	It is important to know if I would meet the eligibility criteria for government programs which might help pay for my care.
6.	I worry about what others will think if Medical Assistance is helping pay for my care.

Leave an Inheritance		Agree	Disagree
1.	Protecting my life savings is important so I can leave an inheritance to others.
2.	Protecting my home is important to be able to leave the home to others.
3.	I’d like to reward family caregivers with an inheritance.
4.	It’s important to me to know that not all of my life savings went to pay for my long-term care.
5.	I’d like to leave an inheritance, if my health cooperates and my life savings are not used to pay for care.
6.	I’d like to leave an inheritance, but not if I have to give up control over my finances while I’m alive to do so.
7.	Gifting to family members while I’m alive is one way I would like to leave a legacy.
8.	I know if my children and/or grandchildren expect to receive an inheritance.
9.	Decisions about my life savings are mine to make, not other family members.
10.	Contributing to my children’s education has been a major part of their inheritance.

What Did You Learn About What Is Most Important?

• Are there goals other than those just mentioned that you would like to accomplish? If so, list them here.

• Go back and review your answers for each potential goal. Which goals seem to be most important? Least important? (Rank order with #1 being most important.)

_________________________________________________ (Add additional goals.)

• Goals will mean different things to individuals. (Add comments to help others understand the meaning of your important goals.)

If I need long-term care, I expect to…

Remain financially independent which to me means…

Maintain control which to me means…

Maintain privacy which to me means…

Involve family members which to me means…

Use government resources which to me means . . .

Leave an inheritance which to me means . . .

• When I think about the possibility of needing long-term care and paying for it, I get concerned about . . .

Now That You Know What Is Important . . .

• Consider who else needs to be involved in these critical conversations and begin to talk. Learn where you agree or disagree.

• Let your goals guide your decisions about which alternatives for financing long-term care to consider.

• Communicate what you hope to accomplish to individuals who may be responsible for carrying out your wishes. Doing so will help others understand your intentions and reduce misunderstandings.

Developed by Marlene S. Stum, Ph.D., Financial Security in Later Life National Initiative Development Team Member from Family Social Science, University of Minnesota. 2002.

Recommended by Judith R. Urich, Ph.D., CFP, Family Resource Management Specialist at the University of Arkansas Cooperative Extension Service. 2003.

Back to 2003 Volunteer Leader Training Guide