Securing the Future: A Guide to Protecting Your Elderly Loved One's Health, Housing, and Care Needs
We know it is extremely difficult for many of us to discuss estate planning with our loved ones. From personal experience with my parents to discussions with my sister when we found out she would die before her husband who has Alzheimer's, it is not an easy but very important discussion to have. As a Realtor who specializes in Seniors, I have embarked on educating and empowering seniors and their families to make the transition as easy as possible for both the senior and the family. I have also seen the chaos in a crisis situation where none of this has been done or where the documents cannot be found. Although most of us believe this is very important according to AARP and many other sources, only 33% of people have an estate plan.
In this article you will learn:
How to make sure you can protect your elderly loved one
Medical, housing, and care needs
Health and care needs
Important documents you need to have in place
Here is a breakdown of the four major factors that need to be taken into consideration when planning for the future of your elderly parents. A recent article, “Accessing needs of aging parents,” from The News-Enterprise explains the steps adult children need to take to protect their parents.
Medical, housing, and care needs. Today they may be active and able to live in their home. Look forward to the next five years, don’t wait for a crisis to occur. I realize we don’t have crystal balls, but have you noticed any decline, either physically or mentally? Is it likely their medical condition may decline? Do they live in a 2-story home with a Master Bedroom upstairs? Will their present home work if they are unable to manage steps? Are the doors wide enough to accommodate a walker or wheelchair (note: should be a minimum of 32” to 36”)? Are there stairs getting into the house? Do they have the money to make some changes so they can successfully age in place? If their home is not conducive to aging in place, would they consider moving?
Health and care needs. Do they have long-term care insurance or do they expect to apply for Medicaid? If one spouse dies or needs to go to memory care, will the surviving spouse have the resources needed to remain in the home should they choose to do so? Check with an experienced estate planning attorney who can evaluate their financial situation with regard to becoming eligible for Medicaid, should this be needed. There is a five-year look-back period for Medicaid, so advance action is necessary to protect assets. If they are a Veteran be sure to check if they are eligible for VA Aid and Attendance.
Do they have a Medical Power of Attorney in place? This document is critical should your loved one be unable to communicate with hospital staff about what they want to do. Just having a POA is not sufficient.
Do they have any estate planning documents in place? Is there a will, and how old is it? Make sure the will is current and that it is still what their wishes are. Has there been a death, a terminal illness, or a change in family dynamics (divorce, estrangement, other grandkids, etc.) Deceased individuals may be listed as agents for Power of Attorney and Medical Power of Attorney. Funds left for heirs may no longer exist. Laws for power of attorney may not include required provisions due to changes to the law.
Other Common Issues
Sometimes, more complicated problems must be addressed. Has an appreciated item (such as real estate) been deeded to loved ones to protect the property from nursing home costs that may trigger a significant tax consequence for intended beneficiaries? Similarly, transferred property intentionally left unrecorded can become a significant problem later for both parents and children.
I cannot emphasize enough the importance of ensuring these documents are up-to-date or created. Do not wait until your family is in a crisis. If these items are not in order, it is their legacy and your “mess” to resolve. Also, as an added note, I recently heard an attorney say everyone over 18 should have a Durable Power of Attorney (POA) and a Medical POA in case of sudden illness or an accident. Without these documents, you may not be the one to make decisions for them should the unthinkable happen.
If you do nothing else, please speak with an Elder Law or Estate Planning Attorney about your situation. Most attorneys will give you a free consultation. If you are in the Indianapolis area, feel free to reach out to me, I know and have worked with several Elder Law and Estate Planning Attorneys that I can recommend, as well as a few that I would stay away from.