Assisted living communities today are nothing like the retirement homes we may have considered for previous generations. Many come with the ability to have our own apartment or condo and simply offer the option to have additional assistance as needed. This flexibility allows more control over the journey through this next chapter of our lives.
One important step to take to retain control during this transition is to review estate planning documents. Even the best of communities can have bad actors that may attempt to take advantage and gain access to financial accounts. Estate planning tools offer control over more than just the distribution of assets, they also control who makes decisions regarding medical care and finances when unable to do so. When preparing to transition into an assisted living community, it is wise to also coordinate a review of these important legal tools. The following checklist will provide guidance and help you begin the process.
Which legal documents should I review and update?
Before entering assisted living, verify that all foundational legal documents are current, properly executed and accessible. These documents form the backbone of the estate plan and help to better ensure wishes are honored if incapacitated due to illness or injury. These documents vary depending on state law. In New York, they generally include:
- Power of attorney: This legal tool allows you to name an individual who can make financial decisions. It can also provide the authority to complete HIPAA release forms on your behalf.
- Healthcare proxy: This form designates who can make healthcare decision
- Living will: Courts in New York recognize these documents, though they are not guided by a specific statute. It can provide additional information about your healthcare wishes, such as specific instructions regarding resuscitation and provision of nutrition.
- Last will and testament. This document outlines distribution of assets.
- Trust documents if applicable. Trusts provide more specific guidance on distribution of assets and can provide tax savings and creditor protection benefits.
Once you have confirmed these documents exist and reflect current wishes, make copies for family members and healthcare agents. In some situations, it can be helpful to provide copies to the assisted living community as well. Store originals in a secure but accessible location and inform trusted individuals where they can be found.
Financial and practical considerations
Beyond legal paperwork, several financial and logistical matters deserve attention before the move. Start by creating a comprehensive list of all financial accounts, insurance policies and valuable assets. This inventory will prove invaluable for whoever manages finances going forward.
Additional steps to complete:
- Designate beneficiaries on all retirement accounts and life insurance policies
- Review and update account titling and joint ownership arrangements
- Consider establishing automatic bill payment for recurring expenses
- Organize important papers including Social Security information, Medicare cards and insurance documents
- Discuss funeral and burial preferences with family members
Having these conversations before entering this next chapter of life, while cognitive abilities remain strong, helps to better ensure that decisions reflect true personal preferences rather than assumptions made by others.
Moving forward with confidence
Completing this estate planning checklist before transitioning to assisted living demonstrates care for both yourself and your loved ones. While these tasks may feel overwhelming, breaking them into manageable steps makes the process more approachable. Consider working with an estate planning attorney who can review your specific situation and documents. With proper preparation, you can enter this new chapter with the peace of mind that comes with knowing your affairs are in order and your family has the tools they need to honor your wishes.
