Most seniors would like to have their financial and healthcare affairs in order as they move into their golden years. They want to get the most out of their resources and have a comfortable retirement and end of life, but they also want to leave something for their family. That kind of planning takes paperwork, lots of it. Finding the right documents, completing them properly and keeping them organized is no small task, especially for seniors whose cognitive functions might be slowing down.
How these documents are used, the rules they must follow and even the way they are formatted can all changed depending on the state where they will be used. Some states have official forms for everything, others are less formal. Lawyers might be required in certain states to draw up some documents but not others. A Notary Public may be needed to bear witness as the senior signs some of these documents.
Our team of professionals at Eldercare Resource Planning can help you with all that paperwork. We may focus on Medicaid planning, but we can help you with some important documents that may not be directly related to Medicaid, like a Power of Attorney.
Trusts are legal agreements that govern the transfer of assets. They can be used in place of a Will to pass down inheritance, which minimizes estate taxes and allows for specific directions when it comes to how and when your inheritance will be distributed. Trusts can also be used to help individuals qualify for Medicaid. Seniors can reduce their assets to meet the Medicaid asset limit for eligibility by using a Medicaid Asset Protection Trust or an Irrevocable Funeral Trust. And they can reduce their income to meet the income limit by using a Qualified Income Trust. To learn more about trusts and how they might affect your care planning, click here.
A Power of Attorney (POA) is a legal document that gives an individual the right to make decisions on someone else’s behalf. POAs do not give full control to another person, but instead they usually give someone else control over a specific area, like finances or healthcare choices. It’s important for seniors to create these documents and choose their agent (the person who will be making their decisions) while they are still mentally capable of making decisions and fully understand the consequences of those decisions. It’s also important to use the right type of POA because there are several. To learn more about POAs and how they can be used in care planning, click here.
More commonly called a Living Will, Advanced Directives for Health Care are legal documents that outline specific instructions for health care. Seniors create these when they have all their mental capacity, and then in the case they become incapacitated and can’t communicate, their health care can follow the directions laid out in the Living Will. Often it will be a spouse or another family member using the Living Will as guidance as they make the health care decisions, but it can also be used by doctors or the state if needed. To learn more about Living Wills, click here.
More commonly known as just a “will,” a Last Will and Testament is the legal document that details how one’s possessions will be distributed after their death. As with all of these care planning documents, a will should be created while the senior still has their cognitive function and understands the purpose and contents of the document. A Last Will and Testament names an Executor who will be in charge of managing the estate of the deceased and the process of distributing their possessions. Eldercare Resource Planning partners with Elder Law Attorneys who can help our clients create a will if needed. To learn more about wills and their impact on care planning, click here.
Our team of Certified Medicaid Planners™ will help you navigate the difficult landscape of Medicaid for long-term care.
