Long-term care planning includes making legal and financial arrangements to prepare for your personal care and living arrangements in case you become frail or have a serious illness. It may also involve planning to help your survivors know your wishes after you are deceased.
Medicare does not pay for home care unless you also need skilled nursing care.
On this page is information about some of the steps you may want to take in advance of a serious illness.
A durable power of attorney is a written authorization to represent or act on another’s behalf in private affairs, business, or some other legal matter regardless of your competence. You may want to assign someone if you need help managing your affairs or are concerned that you will become unable to manage them.
Durable Power of Attorney form that is legal in New York State.
A power of attorney
is a legal document that lets you (the “principal”) appoint another person(s) (your “agent” or “attorney in fact”) to make decisions about your personal financial and legal affairs. It becomes effective when it is signed, but is revoked when – or if – you become mentally incompetent.
A durable power of attorney
indicates that the powers will remain in effect even after/if you become incompetent and unable to make decisions yourself. Among items included in a durable power of attorney may be matters related to the management of property, financial assets, personal relationships and affairs, taxes, and insurance, including health insurance.
NOTE: In New York State, a durable power of attorney does not include the power to make health care decisions. In order to have someone make health care decisions for you if you cannot make these decisions for yourself, you need to appoint a health care agent by completing a
New York State Health Care Proxy
form.
You can also execute a springing power of attorney. This document takes effect (“springs” into effect) at a future time specified in the document when a specific event occurs. Often that event is a serious illness or disability. The document may state that your physician will determine whether you are competent to handle your financial affairs. If you decide to execute a durable or springing power of attorney and want to allow your agent to make gifts, you must also execute a Power of Attorney Gifts Rider. While it is not required that an attorney be consulted about these documents, it is highly advisable.
A Last Will & Testament is a legal declaration by which a person (the “testator”) names one or more persons to manage his or her estate and provides for the transfer of his or her property at their death. Most people have a lawyer help them with their Last Will & Testament.
Personal care for aging individuals or those with serious illness is not provided by Medicare or other health insurances if only bathing, dressing, or using the bathroom are needed. These are considered to be non-medical services and are called Activities of Daily Living (ADL). You may want to consider long-term care insurance to cover these services. Long-term care insurance must be purchased before the diagnosis of a chronic or serious illness.