When many people think of downsizing, they think of big choices, but planning ahead can help make the process less painful for all people involved.
Things are different now than they were in generations past, and because of this, seniors now need to be more strategic in how they manage their estate. I know when I say estate, people think of families who are wealthy, but if you own a car, house, or frankly anything, you have an estate.
A big difference for current families when it comes to an estate and moving into a care facility simply comes down to cost. Anything you have must be used to pay for assisted living or a nursing home before you are able to use Medicaid for it, with the exception of people with long-term care insurance. So, this could mean if only mom needs to go into care, Dad will need to sell the house in order to pay for Mom’s care. In my state, Ohio, the average cost for assisted living is $4500 to $5600 PER MONTH. A semi-private room in a nursing home is more than $9100 PER MONTH. This is one reason why it is SO important to have these conversations early and with someone who can help you set up your estate to avoid this type of devastation.
I am not a financial advisor, but I can tell you one other way things have changed and how I see clients and their families having to make difficult choices. This, of course, involves downsizing. The big question is, do you want to be able to make decisions on what possessions you keep and what you give away? If so, you need to downsize earlier.
Depending on your current circumstances, i.e. health, age, finances, etc., you can choose to do this in stages or do a dramatic downsizing all at once. If you choose to do it in stages, it can make the emotional part of downsizing easier. You can do a general decluttering first where you get rid of items you don’t use or even display. Then the second time you can dig deeper and pare down further so you only have what would fit in a smaller residence like a condo or apartment.
Need more help in going through the process? Schedule your FREE consultation.
Contact denise hudak at 330-414-0963 or denise.hudak@gmail.com
