When most people make financial plans, they plan for how they are going to take care of their children. Most of the time, people do not plan to take care of their parents. That’s the way things work in our culture. Parents provide for themselves and for their children. The support does not usually flow the other way, so we assume that our parents can and will provide for themselves.
Consider this possibility, however, your parent enters a nursing home for long term care. Your parent has enough assets to pay for his or her expected stay. Fortunately, your parent lives a lot longer than expected. Unfortunately, that means that your parent runs out of money to pay the nursing home, leaving the nursing home with the bill. What happens then?
If that nursing home is located in one of 29 states with a Filial Support law, the nursing home can sue you for reimbursement, even if you are not a resident of that state. Make sure that your parents have plans to pay for long term care. Also, make sure that you have plans to pay if you ever need long term care. You do not want to leave your children with an unexpected nursing home bill.