You’ve begun to think about your retirement and your estate planning options.

But as you gather information, open accounts and sign documents you get a nagging feeling. Have your parents done the same? Did they start saving for retirement when they were younger or are you going to have to allow them to move in with you and your family? Who is supposed to care for them when they can’t drive any longer or need help to pay their bills on time?

Although you don’t want to pry and snoop around in their business, as their child, the financial decisions they may or may not have made could impact your own financial health. An AARP survey found that family caregivers who are also working other jobs, provided a few thousand dollars a year in expense coverage for their parents.

Creating a late-life plan with your parents can save you thousands of dollars and hours of stress and aggravation as your parents age. Ask your parents what plans and documents they have in place so far. They’ll need a Healthcare Power of Attorney, a regular Power of Attorney, a Living Will and a standard Will, at the very least. Talk to your parents about where they want to live out their days; their home (in which a caregiver must assist them) or in an independent, assisted living or nursing care facility?

If you feel uncomfortable openly discussing these issues with your parents, try a discussion fantasizing about how you want your old age to look and work into the conversation the questions about what they would want. Make sure you cover the location and people with whom you want to live; the types activities you’d want to have available to you, any travel plans, how you plan to pay for everything, where you would keep your legal documents, who would be responsible for your finances and housing costs or medical care.

If you sense hesitancy or understand that your parents haven’t made these decisions, you may want to urge them to seek estate planning advice. Perhaps they do not understand how much money they currently make could be spared from estate taxes and the burden they are likely to place on their children, if they do not plan ahead.

Legacy APC, A Trusts & Estates Law Firm is a member of the American Academy of Estate Planning Attorneys.

Medicare is a Federal health insurance program that falls under the Social Security Program. Medicare provides benefits for people age 65 and older, as well as individuals under age 65 with certain disabilities or with kidney failure requiring dialysis or a transplant. The benefits of the Medicare program consist of several parts that can make the program complex and difficult to understand.

Medicare Part A - Hospital Insurance

Most people don’t pay a premium for Part A because they, or a spouse, already paid for this benefit through payroll taxes while working. Part A is hospital insurance that covers inpatient care in skilled nursing facilities (nursing homes) and hospitals. Hospice and home health care are also covered by Part A.

Medicare Part B – Medical Insurance

Most people will need to pay a premium to be covered under Medicare Part B. It is medical insurance to pay for medically necessary services and supplies provided by Medicare and covers outpatient care, doctor’s services, physical therapists and additional home health care.

Medicare Part C – Medicare Advantage Plan

Medicare Part C combines Part A and Part B and is provided by private insurance companies rather than the Federal Government. It often offers lower costs and additional benefits that Part A and Part B offer separately.

Medicare Part D – Prescription Drug Coverage

Medicare Part D was signed into law in 2006 and is an optional insurance program that charges a monthly fee in exchange for prescription drug coverage.

Supplemental Coverage

Medigap is the termed often used to describe expenses that are not covered by Medicare. Many private companies offer supplemental insurance programs to cover these expenses. Participants in Medicare Part C normally do not require supplemental coverage, as Part C allows users to select medical coverage that addresses most needs.

Learning the basics of the Medicare program is just one part of building a comprehensive retirement plan, as this program may be more costly and provide less coverage than one anticipates. It’s best to know this before retiring, so your plan can include provisions for payments and any additional coverage that may be needed during retirement, particularly when it comes to long term care.

Legacy APC, A Trusts & Estates Law Firm is a member of the American Academy of Estate Planning Attorneys.