Elder Care: The Legalities of
Elder Care
When you assume care of an elderly relative,
there are many legal documents and formalities
that may need to be completed. These should be
taken care of as soon as possible and, if the
person you are taking into your care can help
you, it will make the process go more smoothly.
Keep in mind that when someone completes these
documents, they are, in fact, giving up some
control of their own lives. Only a very close
friend or family member with no conflicting motives
should be given these powers.
Letter of instruction
A letter of instruction provides
important information and
instructions a caretaker may need. It includes
the contact information
for close family and friends,
a list of assets and liabilities, a list of
insurance policies
and information on all financial
accounts.
Will
A will designates who will
receive major assets after
a person dies. It also
includes guardianship of any children under
the age of 18. Smaller items
such as heirlooms, furniture
and other household
goods, should be
addressed in a separate testamentary
letter. This letter should
be referenced in the will.
Powers of attorney
If the people under your
care are unable to make
decisions for themselves
because they are somehow incapacitated,
you will need to have power
of attorney to make these
decisions for them. Of course, they
will need to create powers
of attorney before they
are actually needed.
There are two main
types of powers of attorney.
A durable power of attorney
gives a person, or people,
authority to manage
finances and other legal
affairs if the person
needing care is not capable
of managing these. It can
be long-term or short-term
and allows the party that has power of
attorney to use money
to provide care, sign
tax returns, handle investments
and other important matters.
A healthcare power of attorney allows the person
designated
to make healthcare
decisions if the person being
cared for is unable to make
these himself or herself.
For example, someone holding
power of attorney may be able
to decide against dangerous
surgery if he or she
feels that is in the
patient's best interest.
Living will
A living will is a clear
statement about wishes
regarding artificial
life support. If
a person's brain is dead
yet the body remains functioning only
with
the help of life
support, a living will
directs attendants in what
choice to make
- to keep the machines
functioning or turn
them off.
Long-term care
For those who can no
longer take care
of themselves, long-term
care is a broad term for
many different options including
nursing homes and in-home
care. Long-term
care insurance
is becoming
increasingly popular
as a way of easing
the financial strain
that long-term care can
impose. Shopping around
for long-term care insurance is important
because all policies
are
different and you
will need to find
a policy that will fit
your particular needs and
budget.
The costs of long-term
care
The reason long-term
care insurance
is becoming so
popular is that
long-term care can be incredibly
expensive - $40,000
per year or
more. Prescription
drugs, legal
fees and other
costs can creep up
quickly as well.
But insurance
premiums can
also be fairly expensive - up to $6,000
per year. Decide
what type of
care you want, find
out the
uninsured cost
for it and compare
it to the insurance
premium that would
cover it. This
will
help you determine
what coverage
is right for
you.
Services covered by long-term
care
Long-term care
usually consists
of some combination
of skilled
care, intermediate
care and custodial
care. Skilled care is the
most
expensive service
involving round-the-clock
care by
a registered
nurse under
the close supervision
of a physician.
Intermediate
care is less
intense and
includes occasional nursing and
rehabilitative
care under
the supervision
of medical
personnel.
Custodial care is home
care. It provides
for the basic,
non-medical
needs of a
patient such as cooking, bathing and
other
day-to-day
needs.
Selecting an
insurance
provider
With the
wide variety
of services
that are
available, choosing the
right insurance
provider
can be difficult.
There are a
few questions,
however,
that will help you decide.
- How are the
benefits
paid?
Are they sent directly to the
provider or do you
have
to pay the charges and receive
reimbursement?
- Who determines if the
patient
needs home health
or
nursing home care?
- What level
of
care does the policy
provide?
- What
is the waiting period from
when the
service begins to when benefits
are paid?
- Does
the policy cover
Alzheimer's
disease and related
disorders?
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