I have started taking over the finances for my parents. At this time, they are both still in their home, however recently both have had major health issues. I am concerned that they will soon need more assistance than they can get in their own home. What am I liable for if I start paying their bills, and what records are important?
If you are paying bills it would be a good idea to have your parents ‘general power of attorney’. Banks can give you the authority to sign your parents checks, with a specific power of attorney form that they have at the bank. However that will not allow you to access information about your parents from service providers, nor will it protect you if you start signing papers for your parents that have a financial connection to them.
Case in point, if you do not have your parents power of attorney, and you sign papers to have them receive assisted living services, or long term care medical services, then you are probably signing a ‘guarantee’ that you will pay the bills if your parents do not. If however, you have their power of attorney, and sign as their agent (remember sign the documents, Parent name by your name, POA), then you are acting as their agent, and the liability for payment rest with them, and their estate.
To prepare for care for your parents, you will need to gather together financial information. Including, five years worth of: a) tax returns (if any), b) checking/savings accounts, registers and bank statements, c) investment information, d) current financial obligations (mortgages or credit card statements), e) titles to house, cars, other property, f) copies of power of attorney, health care proxies, g) medical information, including providers and medications, h) itemization of all large expenditures within the last five years, and I) birth and/or death certificates of parties.
The above might take some digging, and you may have to contact banks, and/or financial advisors for the necessary documents. Start now, before you need them. Keep good records while you are taking care of their finances. Document everything that you take in as income, and you spend. If you do this it will be easier to secure services for them in the future.
Why five years? Because that is the current ‘look back’ period for medicaid benefits. That means before you can receive medicaid benefits you will have to provide all of the above for review by a medicaid specialists with their local department of social services.
As always this is a general answer to a general question. Each legal issue may contain other factors that need to be discussed with your own attorney.
If you have a question for Attorney Kukuvka, please mail them to her at 330 E. Main St., Palmyra, NY 14522 or e-mail to cklaw@verizon.net..