Archive for category Financial

In a past blog, I talked about planning for the future needs of a person suffering from a major medical illness such as Mesothelioma or other asbestos related illness. I touched on the general issues that may need to be addressed. In this blog, I will focus more specifically on the options for assuming control of financial and medical matters. At some point, a family member or other concerned individual may need to assume responsibility for decision making and will need the authority to do so. How and when these actions take place, depend on a variety of issues. Understanding the different options will help you and your family make the right decisions for your circumstances.

Below are explanations of some of the options used to manage your loved one’s affairs:

• Restricted Bank Accounts: Co-signatory accounts require two signatures for withdrawal (unless one owner becomes incompetent and unable to sign). Accounts with permanent withdrawal orders (where the bank issues a monthly allowance to holder) and deposit orders (such as direct deposit of benefits checks) are also options.
• Representative Payee for Social Security: The Social Security Administration can appoint a person or an organization as a “payee” to receive and cash the monthly public assistance checks (Social Security, Social Security Income/SSI, Veteran’s Benefits) for a recipient deemed incapable of managing his/her own funds.
• Power of Attorney: A document which authorizes another person to act on behalf of the individual granting the “Power of Attorney”. The person giving the power is called the “Grantor” and the person granted the power is called the “Attorney-in-Fact”. The authority given can range from general powers, allowing the Attorney-in-Fact to handle all financial transactions and affairs, to limited powers such as handling the check book only. The principle must be competent when appointment is made. The Power of Attorney remains in effect until revoked by the grantor or upon the incompetence of the principle. To continue a Power of Attorney beyond incompetence, the document must be a Durable Power of Attorney.
• Conservatorship: A legal process where the court appoints a person to handle just the real estate/property and financial matters of the ward who is unable to do so. A petition for conservatorship must be filed in Probate Court. This may be used when a person is no longer capable of acting in a responsible manner regarding financial decisions, but is still capable of making appropriate decisions regarding their personal care.
• Guardianship: A “guardian” is appointed by the court to make personal, health care, and financial decisions for a person who, due to either mental or physical disability, is incapacitated. The incapacitated person is referred to as the “ward”. The guardian assumes the responsibility to make all decisions regarding personal affairs, health care, and financial matters. (Note: Properly executed Advance Directives – Durable Power of Attorney and Health Care Proxy – go a long way in making certain that the person’s wishes regarding both personal and financial decisions will be met if the patient is no longer capable of doing so. However, if the patient has not given anyone legal authority to act in their place and they are no longer capable of making these decisions, the courts can be asked to appoint someone to take on this responsibility.) A petition for Guardianship is a detailed process that requires filing of necessary papers in the appropriate court.
• Advance Directives: An advance directive is a document you prepare to inform others of your wishes should you become medically incompetent to make your own health care decisions. Medical personnel must abide by the decisions of your agent as if you were making the decisions yourself. Although the form is a legal document, you do not need an attorney to complete one. Each state has its own guidelines and requirements for advance directives.
• Trust: A trust is an arrangement in which a person (trustee) holds property, real or personal, for the benefit of another (beneficiary). The court is not involved in a trust. The trustee’s authority is confined to what is outlined in the trust arrangement. There are many types of trusts and professional advice should be sought.
• Living Will: A Living Will is a set of written instructions that outline the patient’s health care wishes at the end of life. If a person completes a Health Care Proxy form and also has a Living Will, the Living Will provides instruction for the proxy. This document differs per state – find out how a Living Will is handled in your state.
• Health Care Proxy: The Health Care Proxy is a simple legal document that allows you to name someone to make health care decisions for you (if for any reasons and at anytime you become unable to make or communicate those decisions). Some states only recognize a Health Care Proxy, some use Advance Directives, and some may have a combination. (Note: Choose your proxy wisely. Be sure you know and trust this person. Also, be sure to educate this person regarding your beliefs/wishes and confirm they can fulfill these personal decisions.)

Researching your options is the first step. Deciding what will work for you and your family is the second. As always having these discussions is difficult, but helpful (especially when having the conversations before you are in crisis and having them again over time). Medical and financial providers will be able to provide additional guidance and assistance. Social workers, case managers, attorneys, and financial planners will be able to look at the specific circumstances to help you navigate these crucial decisions.

You may also be interested in getting more information at the following sites:

http://www.caringinfo.org – Caring Connections
http://www.putitinwriting.org – American Hospital Association
http://www.agingwithdignity.org – Aging with Dignity
http://www.naela.com – The National Academy of Elder Law Attorneys