Financial and Legal Help

Legal and financial decisions can be the hardest part of caring for a family member. Making legal decisions early can save you undue stress when care needs have progressed to a more serious stage. This section stresses the importance of addressing the long-term wishes of your relative and the financial options available to help you accomplish them.

Be prepared and Plan Ahead, if you are unable to manage your own affairs in the future. Insurance can play a vital role in planning for caregiving services. Long-Term Care insurance, Medicare and Supplemental Security Income are a few insurance options.

Federal Tax Information is available on how to reduce your tax for caring for a spouse or a dependent.  

Minnesota Tax Information affecting seniors is also available.

Legal issues are an important part of caregiving planning. Learn more about the many legal documents and decisions involved in caring for an aging relative:

Wills enable individuals to decide who gets certain personal possessions when they die. Dying without a will can cause legal problems and potential conflicts for family members. Without a will, assets could be distributed according to the applicable law. Many estate attorneys suggest that both spouses have a will and that they be updated to reflect changes in the estate. You may want to consult with an elder law attorney to discuss these issues, and to obtain the appropriate forms to complete a will.

Living Wills are developed to help others help you when you are medically unable to speak for yourself.  A sample living will, Five Wishes, is available for adults to specify.

Trusts are created for many reasons, including to avoid probate (a court deciding the settlement of a deceased’s estate), to help care for a dependent family member, and to assist in estate and tax planning.

There are several types of trusts available, including a living trust. A living trust can be revocable (can be changed or canceled) or irrevocable (cannot be changed or canceled). Trusts can be an important tool, especially in the case of a dependent or disabled child or adult. As for all legal documents, it’s best to consult with an elder law attorney.

Guardian and Conservators

The court can appoint someone to manage the personal, health care and financial choices for someone who may be unable to do so due to incapacity or incompetence.

The court may appoint a guardian for health care matters and a conservator for financial matters. If no one has this legal authority prior to the incapacity, then the court may be called on to appoint someone or to intervene and assist the dependent person.

A guardian is appointed to make health care and personal decisions for a person who is incapacitated through a physical or mental disability. A guardian could have the legal right to decide where this person will live and the medical treatment he receives. In some instances, a guardian may be given authority, by the courts, to oversee financial matters. Additionally, the courts could limit the scope of the guardian’s authority, including the limit over medical decisions.

A conservator is appointed to oversee the financial affairs of a person who is unable to do so. The conservator takes control of the dependant person’s assets and must handle them, including investing, for the welfare of this protected person. Once a conservator is appointed, a dependent person may not liquidate his own assets or determine how the monies will be invested without the consent of the conservator.

Family members and interested parties may petition the court to become either a guardian or conservator. An example of this could be when an aging parent becomes unable to take care of himself (feeding, bathing, etc.). Concerned family members can petition the court to seek legal status to either become their parent’s legal guardian, conservator or both.

Health Care Directives

Talking with your spouse, parents or other relatives about their health care decisions can help alleviate the stress of having to make critical decisions for a friend or family member. But just talking about important health care decisions is not always enough. You may want to consider writing down your decisions in an Advanced Health Care Directive. Giving copies of these documents to responsible family members, a personal physician and other trusted individuals is also important.

Having these discussions early can reduce the stress and clarify the decision-making procedure in the event of a serious medical incident. Finding out about your loved one’s wishes as they relate to her choices about medical intervention and long-term care may help guide you during a time when she is unable to make her own decisions due to incompetence or incapacity.

Download the Minnesota Health Care Directive.