The Problem

Folks often focus on the present moment – in fact, many people encourage this practice. However, when you prepare your loved one’s financial affairs to ensure future financial security it is essential to plan outside the present moment.

It is easy to become absorbed in current challenges, such as, relocating your loved one, acquiring proper care, and managing this care.

As a result, you may not ponder important questions such as:

1. Are my loved one’s personal and financial arrangements in order?
2. Has my loved one participated in future-planning conversations?
3. Will I be ready and able to oversee my loved one’s affairs when they cannot?

If you forget to prepare your loved one risks falling behind on their care payments. If this occurs they can incur serious debt. Sometimes, residents are even evicted from their care homes. This crisis is serious and you must avoid it!

The Solution

Do not fear! It is never too late to have a conversation with your loved one and make a plan. However, sooner is always better. So, let’s get you started!

Below are steps to assist you:

1. Convert your loved one’s general checking account to a joint account
2. Locate or draft a will
3. Obtain a Health Directive and Durable Power of Attorney (POA or DPOA). This allows you to: gather information, communicate with agencies, and represent your loved one. While your loved one is cognizant, they will maintain a role in decision-making. Thereafter, you will have the legal ability to take over.

These three simple steps will help you build a secure financial future for your loved one. Read on to go the extra mile!

Breaking It Down

What Information Should I Gather?

It is important to understand the financial impact your loved one’s death has on their surviving partner.

• When one partner dies will pension or disability payment stop or reduce?
• Is the surviving partner financially able to remain at home through end of life, or will they need to relocate?

Also, consider your own needs. Ask yourself:

• How much time am I willing to devote to being directly involved?

Finally, evaluate your loved one’s needs:

• What environment is financially and emotionally best for my loved one’s personality and lifestyle?
• What are my loved one’s long-term care options?
• Is my loved one highly social or do they tend to keep to themselves in a quiet environment?

What Documents Should I Collect?

• Original copy of POA and health directive – be sure you have at least three original copies
• Original copy of military service discharge (if applicable)
• Deeds or contracts for home and properties
• Original copy of benefit disclosure letters: social security, labor and industries and/or veterans insurance or disability, pension(s)
• Other Income: financial holdings statements
• Original copy of will

What Forms Should I Complete?

• Five Wishes (https://agingwithdignity.org/five-wishes)
• The National Advance Directive Day (http://www.nhdd.org/public-resources/)
• Also, visit the National Library of Medicine (https://medlineplus.gov/advancedirectives.html)

Who Should Recieve Copies of the Durable Power of Attorney?

•   Doctors and hospital

•   Insurance: health, car, home

•   AARP

•   State: DSHS or L&I if they apply

•   Pensions & holdings

•   Bank

•   Attorney & money managers

•   Veterans administration/U.S. department of veterans affairs (VA)