Over 30 million people are responsible in some way for an elderly person. Sometimes, the senior makes a gradual transition from being a family leader to being the dependent of a family member or friend; at other times, it happens suddenly, as the result of an illness or the death of a spouse. Whether you are being reached out to for advice or help with money management, or are experiencing health-related forms of dependency, it's easiest to handle responsibilities on behalf of an elder if you are prepared.
You are most likely to inherit responsibilities for an older person if you are:
• The geographically closest female relative
• A relative or friend with medical, financial or legal training
• A family member or friend who has been financially successful
• A member of an ethnic family or community with cultural expectations that include care of the elderly.
If you anticipate playing the role of helper to an elder, here are some tips for getting prepared.
• Get organized early. Secure official permission (in the form of legal documents called a durable power of attorney) that authorizes you to handle the affairs of the elder.
• Make sure that a will, a power of attorney, a health-care power of attorney, and other like legal documents are all in place, current and located where you can find them.
• Create a file of recurring financial transactions and account and contact information for each bank, insurance company, investment adviser and attorney who is involved in the elder's personal or professional business.
• Locate and organize all insurance papers, including life insurance, health insurance, Medicare policies and prescription-drug arrangements.
• Make sure important documents are stored in a safety deposit box that you can access without the person present in case of emergency. Find out if the insurance carriers will honor a durable power of attorney, or if you need any special documentation to become an advocate for the elder. Recent HIPAA or privacy policies my dictate that certain forms be transacted so you can access medical information.
Getting ready to step in when needed is a time-consuming activity that may not be easy. Any discussions of transferring serious responsibilities--such as financial management or health-care oversight--can be very emotional. One of the best ways to initiate a discussion is by meeting with an objective third party, such as a trust attorney who can spell out the need to be prepared in an objective, thoughtful way.
