Caring for an aging spouse or parent can be difficult for both the caregiver as well as the rest of their family. Adding to this challenge the financial burden of assisted living or nursing home care for an aging spouse or parent can be incredibly difficult.
To help navigate these care and financial issues, a family should develop an elder law plan. These are the key issues of an elder law plan and how to implement it:
1. What is included in an elder law plan. An elder law plan should include two main parts: planning for the care of an aging spouse or parent and the related legal and financial planning. The care planning should incorporate which in-home care provider should be engaged if the need arises, what assisted living facility or community the spouse or parent can move to, and finally, what skilled facility or nursing home could best take care of the spouse or parent. Having a preferred as well as a backup provider for in-home, assisted living, and nursing home care is also important. As far as the related legal and financial planning, each of these levels of care have a different range of cost. In addition, some of them require private payment meaning a couple or the parent must use their own assets and income to pay for the care. Other times, provider may accept payment from programs like Medicaid, MI Choice, PACE, and VA Aid and Attendance. Each of these programs has financial eligibility rules as well as planning that can be done to qualify. An elder law attorney can advise a family on what programs are available and what planning can be done to become eligible. Finally, various legal documents are also important to have in place to allow the family to carry out decisions without the cost and stress of going through probate. They often include wills, trusts, financial powers of attorney, and health care powers of attorney.
2. Know how to implement the elder law plan. Having an elder law plan is important. However, it’s also important to know how to implement it. Implementation has two parts. One relates to how the care plan is carried out. The second is how to implement the financial legal planning. In terms of the care planning, this includes when certain care (i.e. independent living, assisted living, or nursing home care) should be pursued for the spouse or parent. This can be very challenging because a spouse or parent may be resistant to moving, and a caregiver may feel guilty about this change. However, having these honest conversations with whose involved is critical to the safety of that spouse or parent as the well being of the caregiver. As far as the financial and legal planning, this includes when to activate certain documents like the financial and health care powers of attorney. Also, knowing when to apply for certain process is important. Finally, planning for Medicaid, MI Choice, PACE, and VA Aid and Attendance often involves liquidating certain assets or retitle them. Knowing when to do this will avoid unnecessary tax liabilities and complications with qualifying for these programs.
3. Know when to assess or change the plan. Aging is a very complicated process. It can be foreseeable and reasonably predicted by medical professionals. Much more often, it’s very unpredictable and even the best medical professionals can’t anticipate how it’ll progress.phmulder@cunninghamdalman.com Knowing when to reassess an elder law plan and decide when it needs to be changed is critical. Ask medical professionals and an elder law attorney what circumstances would require re-evaluating or changing an elder law plan.
If you have any questions about a creating an elder law plan and how to implement it, feel free to contact me at phmulder@cunninghamdalman.com.
