Unless your parent is single (or divorced or widowed) and has few or no assets, you will have to know his or her financial situation before you can make long term care plans. Except for those with very low income and almost no assets, in the United States long term care is primarily a private pay affair. How do you know what your parent can afford?

You calculate their net worth, and look at where the money is. Is it in a place where you can access it easily, such as a bank account? Will it be "liquid" within a matter of months or a few years, such as in a CD? Will your parent take a large loss if you have to liquidate something prematurely, such as stocks or bonds? Are most of your parent's assets tied up in real estate? You need to know this before you can make some important decisions.

Use the Senior Net Worth Estimator to begin your calculations. With this information you will be able to plan realistically and productively. Remember that for a host of reasons it makes most sense to use your parent's funds before your own when paying for care.

Download the Senior Net Worth Estimator