When a loved one requires long-term care, it can be an emotional and sometimes overwhelming experience for families. Especially if you hold Power of Attorney (PoA), the responsibility to manage their affairs can feel overwhelming. Here are some essential tips to help you navigate the complexities of care fee planning and ensure that you make informed decisions.
Know Your Duties: Understanding Powers of Attorney
As an Attorney, you’re responsible for managing the financial and legal affairs of your loved one. Chances are, if you’re reading this, a PoA is already in force and registered with the relevant authorities. But do you know what type of PoA it is, and what it enables you to do? In Scotland, the two most common forms of PoA are Continuing PoA and Welfare PoA. The former deals with financial matters, while the latter involves health and personal welfare decisions.
Be sure to understand the scope of your authority—what you can and cannot do on their behalf. You’ll need to keep detailed records and always act in the best interests of the person you’re representing.
Record Keeping: Organising Assets and Liabilities
One of the primary responsibilities of being an Attorney is maintaining comprehensive records. This includes registering the PoA, securely storing records of both liquid and non-liquid assets (such as bank accounts, property, and investments), and keeping up-to-date records of any income, including its source, frequency, and any anticipated increases.
You should also track existing costs or regular expenses, such as care costs or loan repayments. Staying organised will make the process smoother when dealing with financial assessments or managing care costs.
Engagement with the care provider: Guidance for a Smooth Process
The complexities of care planning can seem overwhelming. However having an open and honest dialogue with the care provider can help ease the burden. Care providers are in the job they are in because they care about people. Speak to them about your concerns and ask questions. Putting yourself in an informed position will help you feel in control.
Peace of Mind: Working with legal and financial professionals
Managing the affairs of another can be complex and absorb a lot of your time. Utilise the services of legal professionals to keep yourself right and answer any questions you have about your responsibilities and what you can and can’t do. Financial planners can help you to manage the finances of the individual you are Attorney for. They can advise you on managing care costs, streamlining finances to simplify your workload, and forecast the financial outlook to ensure you are well placed now, and in the future.
The Society of Later Life Advisers (SOLLA) provides accreditation for financial professionals specialising in later life advice. Working with a SOLLA-accredited adviser ensures that you’re receiving qualified guidance.
Deal with care costs head on: Plug the gap
Care costs can seem insurmountable. However, planning for care costs is very time sensitive and delays in planning can have a detrimental effect on the future. Satisfy yourself that care fees can be maintained for the foreseeable future so as to avoid any difficult circumstances in the future.
For support, lean on your financial planner to assist with this, if it’s not something you are comfortable doing yourself.