Should adult children be financially responsible for their aging parents? Historically, the answer was yes. Known as filial-responsibility laws, it was once a legal requirement for family members to support indigent relatives. When these laws were created in the 1700s, it was generally believed that this approach was superior to a public welfare system. All states had filial responsibility laws at one time.
Starting in the 1960s many states started to repeal these laws. Maryland repealed its filial responsibility law in 2017. The reason this matters now is that many adult children are faced with aging parents (who are living longer) with long-term care needs. These adult children often ask - what are their responsibilities and obligations?
The argument in Maryland to help repeal the laws in 2017 claims that adult children should not suffer consequences for financial decisions and hardships faced by their parents. Another argument in support of the repeal is that federal benefits programs like Medicare, Medicaid and Social Security now provide the safety net necessary to care for indigent elderly relatives.
With that said, it is always best to assist aging loved ones when possible by developing a solid long-term care plan. Being proactive can prevent unnecessary hardships later.
What is a long-term care plan?
Setting up a long-term care plan is not only budgeting for expenses or funding the risk through a product like long-term care insurance. To properly plan for long-term care, seniors need to determine the type of care they want (in-home or facility and type of facility), who will provide that care and develop a way to finance the costs. Long-term care for older adults is often shifted onto family members when there is not a long-term care plan in place. Planning also takes into account whether long-term care insurance is needed.
Unlike traditional health insurance, long-term care insurance is designed to cover long-term services such as personal and custodial care in a variety of settings such as home, a community organization or other facility.
Long-term care insurance policies reimburse policyholders a daily amount (up to a pre-selected limit) for services to assist them with activities of daily living such as eating, dressing and bathing. You can select a range of care options and benefits that allow you to get the services you need, when and where you need them.
The cost of the long-term care policy is based on:
§ The senior’s age when the policy is purchased;
§ The maximum amount that a policy will pay per day;
§ The maximum number of days (years) that a policy will pay;
§ The maximum amount per day times the number of days determines the lifetime maximum amount that the policy will pay; and
§ Any optional benefits chosen.
If you or your loved ones need assistance in making a plan for long-term care, contact the experienced and compassionate attorneys at Stouffer Legal in the Greater Baltimore area for a consultation.
