Most people will never forget when they first noticed their parents’ declining health. Many find it difficult to accept the reality of their parents aging, but it’s critical to know for certain what, if any, preparations are in place for their needs. The most crucial question to ask your aging parents at that moment is, “Do you own a long-term care insurance policy?”

According to the Pew Research Center, the number of Americans living in multigenerational households surged over the last four decades from around 14 million to nearly 60 million people, comprising almost 20 percent of the U.S. population.

If you ever feel like you’re “sandwiched” between taking care of your children and caring for older parents, you’re part of the “sandwich” generation. While this term can refer to people who are still raising young, school-aged children at home, it also encapsulates adults who have financially dependent (or partially dependent) adult children.

Almost 80% of caregivers routinely spend their own money while caring for aging parents. While everyone’s situation is different, a recent study found that caregivers spend on average 26% of their annual income, or $7,242, on caregiving.1 Caregivers, while more than willing to share their resources with their loved ones, can feel financially squeezed for several reasons. Not only are they likely to pay out of pocket for their parents’ expenses, but it’s possible they’ll pass up promotions, take a less demanding (and lower paying) job, or work fewer hours.

For many professionals in the sandwich generation, the joys of family life come with an added layer of responsibility. You often find yourself nestled between two generations, each needing your support. Your children look to you for guidance, education, and often, financial aid. Simultaneously, your aging parents might require assistance, ranging from emotional support to more hands-on care and financial help. Welcome to the "sandwich generation."

Whether you're envisioning relaxed evenings by the Potomac or dreaming about your next great international adventure, here's a tailored checklist that ensures your golden years and your loved ones are well cared for.