"This spring we suddenly had to move my in-laws to assisted living. My mother-in-law's dementia was spiraling, and we discovered my father-in-law also has something similar. They had done a good job covering up what a mess their lives had become the past few years, and now we're slowly unspooling it. Dear Not Thinking Clearly, My husband has power of attorney, both financial and medical. We're through all the medical hoops, and I'm now looking at their finances."
"Apparently a few years ago, they took everything out of their annuities/IRAs and dumped it all into a standard checking account (not even a money market). They have about $130,000 in capital. Their house will sell soon, adding another $250,000 or so. My mother-in-law has long-term care insurance that covers $6,000 a month of memory care, and they both get pensions to the tune of $12,000 a month."
In-laws were moved to assisted living due to worsening dementia. Husband holds both financial and medical power of attorney and medical approvals are complete. They previously liquidated annuities and IRAs into a standard checking account and currently hold about $130,000 in cash. Their house is expected to sell for roughly $250,000. Mother-in-law’s long-term care insurance covers $6,000 per month for memory care, and combined pensions provide about $12,000 per month. Current income and insurance should cover care costs, but preserving liquidity and placing excess cash into short-term, low-risk investments is advisable.
Read at Slate Magazine
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