Many people think that they don’t need to worry about financial planning when thinking about long-term care, assuming that their spouse will be able to access and manage their assets. In reality, your spouse may not be able to withdraw from various investments, including your Individual Retirement Account (IRA), even if the funds will be used for your medical care.
You need to have a conservatorship or guardianship in place in most states for your funds, investments, savings and assets to be used for your long-term care. Just as you would establish an agent to make your health care decisions, someone needs to be named to handle your finances. A durable financial power of attorney can be anyone you choose, and they will be authorized to conduct activities as required for your care.
When choosing your durable financial power of attorney, be sure to choose someone that meets the following:
- Has no financial problems of their own
- Is not in the middle of a divorce, or likely to divorce
- Is honest
- Has earned your trust
- Have known a long time
- Manages finances well and is financially stable
Choosing a person to handle your funds is no easy task, and unfortunately often generates conflict in families with more than one person who wants to control the finances when you are unable to do so. Choose carefully, and if you feel a family choice will create too much strife, find a friend or professional to handle your finances instead.
