Change is never easy. This is especially true after you’ve lived in a place for decades and worked hard to build a home and grow with the local community. Yet, times change, children grow and leave, and your health may no longer be in top shape.
If you’ve decided to move into a senior living community, know it’s not something to feel anxious about. You’ll be well taken care of, make new friends, and learn new things. Just make sure to tie up all loose ends before the move. You don’t want any legal troubles because you forgot to file a paper, or your insurance isn’t up to date.
To help move things along, here are five categories of paperwork you must organize and put in order before opening the door to this new chapter of your life.
1. Power of Attorney (POA)
A Power of Attorney (POA) is a legal document that gives someone the authority to act on your behalf. Since any reliable adult can become your Power of Attorney (POA) agent, or an "attorney-in-fact," this document lets you choose someone you trust to manage your affairs.
There are two types of Power of Attorney documents to consider in this case: a financial POA and a healthcare POA. Here’s why you need two:
- Financial POA: Grants the agent the authority to manage financial affairs, such as paying bills, managing bank accounts, and handling taxes.
- Healthcare POA: Also known as a healthcare proxy or medical power of attorney, this allows the designated person to make medical decisions if you are no longer capable of doing so.
Entrusting someone with your financial and physical well-being can be intimidating, but a Power of Attorney (POA) is a contingency plan that becomes essential as the risk of cognitive decline increases with age. By choosing an agent ahead of time, you ensure your wishes are carried out and spare your loved ones from a potentially difficult and expensive legal process.
Extra tip: Consult a local attorney to ensure your POA is valid and effective in the place where you live and own property. For instance, if you own property in the Dallas area, your best option is to talk to a Dallas trust attorney. They can offer expert legal advice and customized drafting so your documents are properly prepared and valid.
2. Advance Directives (Living Will)
A living will is a document that states your preferences for medical treatment, especially in end-of-life situations. It provides clear instructions about the types of medical care you do or do not want to receive.
Unlike a healthcare POA, the living will is a list of your wishes, not a person to make decisions for you. It typically becomes effective when you are terminally ill, permanently unconscious, or in a persistent vegetative state.
3. Will and Testament
This document deals with the distribution of assets after death. It names an executor to manage the estate and outlines how property and possessions should be handled. Without one, a state court will distribute your assets according to a rigid set of state laws, which may not align with your true wishes.
It’s also a way to prevent family disputes and squabbles over who gets what. They may be wonderful people, but disputes of this type can get ugly.
Lastly, if you have adult dependents or minor grandchildren under your care, a Will is the only way to legally appoint a guardian. It’s a critical step to ensure that loved ones who rely on you for care are protected.
4. Medical Records
Once the main affairs are in order, you can focus on yourself. The first thing to do is put together a comprehensive and up-to-date medical history.
This is what you should include:
- A list of current medications and dosages.
- Information on past surgeries, diagnoses, and allergies.
- Names and contact information for all doctors and specialists.
- A recent physical exam report.
- A signed HIPAA release form to allow the sharing of medical information with designated family members or caregivers.
5. Personal and Financial Documents
The new care facility or community will require personal and financial information to process admission and set up payment arrangements.
For personal documents, you’ll need a government-issued ID (e.g., driver's license or passport), a social security card, a birth certificate, and other documents you consider important.
In terms of financial documents, here’s what you’ll need:
- Bank account and investment account information.
- Pension, Social Security, and 401(k) documents.
- Long-term care insurance policies.
- Recent tax returns.
- A list of all recurring monthly bills and debts.
It may also be a good idea to make sure you understand the costs that assisted living implies, now and in the future. Prices are bound to get higher, so it helps to ensure you have sufficient funds down the road.
Wrap Up
It may look like a lot of work, but the good news is that, once you've taken care of everything, you can relax and enjoy your golden years. It’s time to pass on the responsibilities of managing estates and finances to someone younger whom you trust!