Supporting a Loved One: Financial Considerations for Family Caregivers

Eric Mischler |
Categories
Financial Planning
Family
Lifestyle

Family caregivers play an important role in supporting loved ones through life's challenges. Whether assisting an aging parent, caring for a spouse, or helping another family member navigate health-related concerns, caregiving often extends beyond day-to-day support.

Many caregivers find themselves helping organize information, coordinate care, manage expenses, and participate in important financial and healthcare discussions. In recognition of National Caregivers Month, we're highlighting several financial considerations that may help caregivers better understand some of the planning considerations that can accompany a caregiving role.

Get Organized

When unexpected situations arise, having access to important information can make a meaningful difference.

The National Institute on Aging encourages individuals and families to organize important legal, healthcare, and financial information before a serious illness or healthcare crisis occurs.1

Consider helping your loved one organize:

  • Insurance policies
  • Healthcare information
  • Financial account records
  • Estate planning documents
  • Important contact information
  • Professional advisor information

Having documents and information readily available may help reduce confusion and make it easier to locate critical information when needed.

Understand Key Decision-Making Documents

As caregiving needs evolve, family members are sometimes asked to assist with financial or healthcare decisions.

Two common documents to be aware of include:

  • Durable Power of Attorney

A durable power of attorney allows an individual to designate someone to act on their behalf regarding financial and legal matters if they become unable to do so themselves.3

  • Healthcare Power of Attorney

A healthcare power of attorney allows an individual to appoint someone to make healthcare decisions on their behalf if they are unable to communicate those decisions themselves.2

Advance care planning documents can help families prepare for future healthcare decisions before they become necessary.2

Knowing whether these documents are in place can help family members better understand responsibilities and decision-making roles.

Start Important Conversations Early

One of the most valuable things a family can do is talk openly about preferences and expectations before a crisis occurs.

Potential discussion topics include:

  • Healthcare preferences
  • Long-term care considerations
  • Family roles and responsibilities 
  • General wishes and priorities
  • Key contacts and advisors 

While these conversations may not always be easy, they can help family members better understand one another's wishes and reduce uncertainty during stressful times.

Plan for Potential Caregiving Expenses

Caregiving can sometimes involve unexpected financial responsibilities.

Depending on the situation, expenses may include:

  • Transportation costs
  • Home modifications
  • Medical equipment
  • In-home support services
  • Additional household expenses

While every caregiving journey is different, being aware of potential costs may help families make more informed decisions and prepare for future needs.

Don't Forget Your Own Financial Well-Being

Caregivers frequently prioritize the needs of others, sometimes at the expense of their own financial goals.

While supporting a loved one, it's important to continue paying attention to your own financial well-being, including:

  • Retirement savings
  • Emergency savings
  • Insurance coverage
  • Beneficiary designations
  • Estate planning documents

The Family Caregiver Alliance notes that caregiving can have financial implications for caregivers, including impacts on work, income, and long-term financial goals.4

Taking time to review your own financial plan may help ensure your personal goals remain a priority as well.

Build a Support Network

Caregiving is not something you have to navigate alone.

In addition to family and friends, support may be available through:

  • Healthcare providers
  • Community organizations
  • Caregiver support groups
  • Legal professionals
  • Tax professionals
  • Financial professionals

Having a network of trusted resources can help caregivers feel more confident when facing complex decisions.

Final Thoughts

Caregiving is often an act of compassion, dedication, and love. While every family's situation is unique, taking time to organize information, understand important documents, communicate openly, and prepare for potential financial considerations can help families navigate caregiving responsibilities with greater confidence.

Sources

  1. National Institute on Aging (NIA), 2026 [URL: https://www.nia.nih.gov/health/legal-and-financial-planning]
  2. National Institute on Aging (NIA), 2026 [URL: https://www.nia.nih.gov/health/advance-care-planning]
  3. AARP, 2024 [URL: https://www.aarp.org/caregiving/financial-legal/caregivers-legal-checklist/]
  4. Family Caregiver Alliance), 2026 [URL: https://www.caregiver.org/resource/smart-caregiving-by-fca-legal-stuff/]

Disclosures 

This content is developed from sources believed to be providing accurate information. The information provided is not written or intended as tax or legal advice and may not be relied on for purposes of avoiding any Federal tax penalties. Individuals are encouraged to seek advice from their own tax or legal counsel. Individuals involved in the estate planning process should work with an estate planning team, including their own personal legal or tax counsel. Neither the information presented nor any opinion expressed constitutes a representation by us of a specific investment or the purchase or sale of any securities. Asset allocation and diversification do not ensure a profit or protect against loss in declining markets. Investing involves risk including loss of principal. No strategy assures success or protects against loss.