Who will help if I need it?
Thoughts from an Aging Life Care Manager about health and finances as we age
While working at a senior housing complex many moons ago, one of my residents, Charles, received a diagnosis that led to worrying about who might manage his health and financial affairs when he could no longer do it himself. He was estranged from his only child and leaning toward asking his kind, hired caregiver to assist.
As his assigned professional advocate, my job was to support Charles in making informed decisions about the next steps in protecting his future. Charles did not yet have an attorney, financial advisor, or a tax preparer (beyond an AARP volunteer). His accounts were simple: a checking and savings account, and like many of my residents, Charles’ payments were automatically withdrawn from his checking account.
What Charles needed was a longer-term solution. I am not qualified to give legal advice, but I introduced Charles to some basic concepts, including:
A Great Plan Starts with an Estate Plan
You do not need to be wealthy to plan for your future. In fact, most Americans are not millionaires, but they all have something worth protecting. That’s where having an estate plan comes in. (This is where most people’s eyes start to glaze over, but stay with me!) In partnership with an attorney, you will customize your plan so it reflects your state laws and, more importantly, your desires. Some common estate-planning documents:
1) Power of Attorney (POA) for Healthcare
2) Power of Attorney (POA) for Property (e.g., the device you’re using now to read this blog, your house, financial accounts, pet, car, etc.)
3) Will
4) Trust
Who Will Be in Your Corner?
Charles worried about how he would manage alone if he went into the hospital. What if he returned home with nobody to help him? Who would know and express his wishes if he was unable to be his own voice?
Unwittingly, Charles was talking about the role of an Agent, the person (or entity) Charles named as his POA for Healthcare. (Depending on your state, the term Agent might be Healthcare Proxy, Surrogate, Representative, or Attorney-in-Fact.) No matter what the title, they have one job: when you are unable to give voice to your healthcare decisions, your Agent makes the healthcare decisions for you that you would make for yourself. Two key takeaways: 1) your Agent does not start making decisions on your behalf until you are unable to make those decisions for yourself and 2) they are empowered to make decisions you would make for yourself, whether they agree with those decisions or not.
Show Me the Money
But who manages your stuff? The other three (3) documents provide that authority, and each document has its own unique titles for you and the named legal decision-maker.
Agent
The person (or entity) who will manage your stuff (e.g., open your mail, pay your bills, secure your home, pay for your care, etc.) is called an Agent and will be named in your POA for Property. Authority under a financial power of attorney ends at death, and the decision-making baton is handed off to your Executor.
Executor
Your Executor can only step in after you pass away, and they are responsible for managing all your stuff, just like your Agent under the POA for Property did during your life. An Executor is responsible for carrying out the terms of your will and settling the estate. Your Executor also has the responsibility of settling your final financial affairs, including making sure any remaining assets are given to the people or charities you expressly defined in your will.
Trustee
If you establish a trust, the trustee manages the assets that are titled in the name of your trust during your lifetime. What is unique about the Trustee’s role is that the trust can authorize them to continue managing those assets after your death. In this way, it is the only document that bridges managing your assets both during your lifetime and after your death. Not everyone needs a Trust, but that decision is one you will make with your attorney.
Attorney or No Attorney: My Best Advice
People often ask me if they need to hire an attorney to draft these documents. The truth is they don’t. While some people use self-help forms, estate planning documents are legal documents with significant consequences, and many professionals recommend consulting a qualified attorney. There are plenty of places where you can access free POA documents and templates for a Trust or a Will.
However, as an advocate, I want you to have the very best. During my years at an elder law firm, I saw firsthand how the attorney-drafted documents were far superior to standard state-provided forms. For example, attorney-drafted documents are often more customized and comprehensive than basic statutory forms. For my clients, I wholeheartedly endorse attorney-drafted documents. If you cannot afford to hire an attorney, my recommendation is to seek affordable counsel by contacting your state or county legal aid office or the closest area Bar Association. Oftentimes, they offer pro bono estate planning services. You can locate an elder law attorney at NAELA.org or a Fellow of The American College of Trust and Estate Counsel at ACTEC.org.
The Final Step: Making an Informed Decision
So, when family is not an option, who should you name in your documents before you cannot make your own decisions? I have two recommendations based on my experience with both organizations:
- The American Association of Daily Money Managers (AADMM): members of this profession can support you or your legal decision-maker by collecting, sorting, and processing your mail, gathering and delivering your tax documents to your tax preparer, monitoring and paying your bills, advocating for you when you have been overcharged or when your insurance company fails to pay a claim, and much more. Find these helpful professionals at AADMM.com.
- The Aging Life Care Association (ALCA): this profession has been around since the 1970s. Aging Life Care Professionals are guided by the professional standards of practice, ethics, and continuing education established through ALCA. These professionals are experts in helping the aging and disabled find reputable care at every stage and can advocate for you with your doctor, at the hospital, pharmacy, or care facility, and can be your eyes and ears, or your distant family’s boots on the ground. Find one near you at AgingLifeCare.org
*Some AADMM and ALCA professionals serve in some or all estate planning roles mentioned above.*
Charles is one example of many solo agers living among us. Helping Charles, and thousands of other clients, make an informed decision that shapes their future by providing you with the very best my industry has to offer is the privilege of my life.
Colleen Ceh Becvar is an Aging Life Care Manager and president of the Midwest chapter of the Aging Life Care Association (ALCA), an AADMM Alliance Organization. Colleen is also co-founder of TAG.
