TRAP #1
Avoiding 'Tough Conversations' About Health Care Wishes and Long-Term Care
Nursing homes, life-support, resuscitation, feeding tubes...these are all very personal and awkward topics that no one likes to discuss while they are in good health. But realistically, accidents, illness and disability can strike without warning and that's why it's so important that you talk to your parents about these things while they are still well and able to communicate. You will find that knowing your parent's wishes in these different situations will make your job as a caregiver much easier, as you will know exactly what (or what not) to do in a medical emergency.
TRAP #2
Staying Out of Mom and Dad's Financial Business
Contrary to how things were growing up, now that your parents are older, their finances are your personal business. As a caregiver, you'll need to have some idea as to what assets and debts they have, what insurance is in place and where important financial and legal documents are kept. This will allow you to make informed decisions and properly manage their money if incapacity occurs. It will also give you a better idea as to what resources are in place to cover long-term care so you can take steps to secure aid (rather than pay out of your own pocket!) if funds are lacking.
TRAP #3
Not Having Correct or Up-to-Date Documents in Place that Allow You to Advocate on Your Parent's Behalf
It's very common for parents to do an estate plan when their kids are young and fail to re-visit and update this plan as circumstances change through the years. This often results in mom or dad having an outdated plan where the person they named as power of attorney or health care agent 25 years ago is no longer alive, or lives across the country or is no longer the person they would want to make decisions on their behalf. Another concern is that their old estate plan may fail to take into account the new HIPAA laws in place, which could make accessing medical information extremely hard for their caregiver in an emergency. If you suspect your parent may have such an outdated plan (or maybe no plan at all!), call our office and schedule a free review.
TRAP #4
Do-It Yourself (DIY) Estate Planning
Getting sound legal advice is critical if your parents have assets they are trying to protect while applying for Medicaid or skilled medical care. We often see families use DIY asset protection strategies such as adding someone else's name to mom's bank account or even switching names on assets, only to have them backfire miserably when a crisis situation occurs. Remember, there are very strict look-back periods and even the slightest change at the wrong time could put your parents on the hook for long-term care (which typically runs in excess of $7,000 a month!). It's only after mom or dad's assets and savings have been depleted will they qualify for assistance... unless, of course, you work with an attorney who can help your family put the right legal tools in place to preserve their assets without jeopardizing state or federal aid.
TRAP #5
Assuming Medicare / Medicaid Will Pick Up the Tab
for Long-Term Care
When it comes to needing long-term care, many seniors and their families are shocked to learn Medicare and Medicaid won't cover their expenses. Keep in mind that Medicare, which is the insurance most seniors have with their social security benefits, only pays for 100 days of long-term care. After that, any care still required becomes the responsibility of the patient. At this point, Medicaid coverage may be available, yet if you have assets or money in the bank, you will not qualify until all remaining assets have been spent on your parent's care (Medicaid is a need-based program which you must have limited income to qualify for). As mentioned in Trap #4 above, you may want to consult with an attorney to discuss how to legally shift ownership of your parent's assets (such as putting them in a trust) to ensure they can still qualify for state aid without losing everything they own in the process.
