Financial Planning
Financial planning is essential to achieve your aging-in-place goals as the focus of financial planning is to plan for life. You and your loved one can complete this planning or there are certified financial planners that can help you and your loved one through this process.
Steps to Planning for Life
- Step 1: Review Insurance
- Review coverage of your insurance
- Health insurance: does it cover common Parkinson’s Disease prescriptions, therapies (OT, PT, Speech)
- Home insurance: does your insurance protect any modifications that you make to your home
- Long-term insurance: Do you have this insurance? Can you get this insurance? What does your long-term insurance cover?
- Life insurance: Can you borrow against your life insurance to help pay for unexpected bills? Do you have term or permanent life insurance?
- Review enrollment dates
- Add/drop insurance
- After you reviewed your insurance if you plan to keep your insurance make sure you are aware of the enrollment dates in order not to lose coverage.
- If you plan to switch plans begin searching for insurance that meets your needs.
- Step 2: Create a Budget
- Create a monthly or yearly budget, using the following categories:
- Living expenses (food, transportation, housing, clothing, phone, cable, internet, home repairs, lawn care)
- Medical expenses
- Adaptive products
- Medical equipment
- Long-term care costs (respite care, home care, assisted living facility, nursing home)
- Legal fees (certified financial planner)
- You can create your budget tool or there are some ready-to-use budget tools available online.
- Step 3: Power of Attorney
- What is a power of attorney: “is written permission for someone to take care of property or money matters for you, in whatever way you want” (Law Help MN, 2021).
- What is a durable power of attorney: Meaning that this document does not become void if the principal attorney is unable to make decisions.
- You will want to write on your form: “This power of attorney shall not be affected by incapacity of the principal” (Law Help MN, 2021).
- This is a link to the Minnesota power of attorney form: https://www.lawhelpmn.org/sites/default/files/2018-11/Minnesota%20Power%20of%20Attorney%20Form%20and%20Notices.pdf
- Step 4: Create a Living Will
- A living will is different than a will
- A living will is “a statement of health care wishes to guide/direct your health care agent”
- A living will focus on:
- Lifestyle (nursing home, assisted living, or home)
- Health
- End-of-life measures
- Funeral/burial
- This document must be created with the help of a lawyer
- Create several originals to pass to selected healthcare agents and family members.
- Step 5: Create a Will
- This document is different from a living will, as this one focus on how your assets (money, property, and personal belongings) should be utilized upon passing away.
- What to include in your will:
- How your assets should be distributed (family, friends, charities)
- Personal letter of instruction to beneficiaries on your intentions
- How to complete a will:
- “The will must be in writing;
- The will must be signed by you, by another person at your direction and in your presence, or by your conservator pursuant to a court order;
- The will must be witnessed by at least two people, both of whom must also sign the will; and
- You must intend for the document to operate as a will” (Minnesota Attorney General, n.d.).
- Step 6: Organize All Financial Documents
- Collect all financial documents and related information, to ensure your wishes are maintained if you are no longer able to make decisions.
- What to organize:
- Account numbers
- Contact information for financial advisors
- Log-in information for the accounts your power of attorney has access to
- Budget plan
- Step 7: Review
- As aspects of your life change (health status, assets, medication, family dynamics) it is important to review your financial plans.
- Send any updated wills, living wills, and power of attorney documents to individuals that you trust, and feel will fulfill your wishes if needed.
References:
Education for Justice. (2021). Powers of attorney. LawHelpMN.org. https://www.lawhelpmn.org/self-help-library/fact-sheet/powers-attorney
Minnesota Attorney General. (n.d.). Probate and planning. https://www.ag.state.mn.us/consumer/handbooks/probate/CH1.asp#:~:text=The%20will%20must%20be%20in,to%20operate%20as%20a%20will.
Parkinson Association of the Rockies (n.d.). Develop a financial plan. https://parkinsonrockies.org/live-well/financial-and-legal-matters/financial-planning/
Shenkman, M., M. (n.d.). Financial and estate planning for the Parkinson’s community. https://www.michaeljfox.org/sites/default/files/media/document/MJFF-Estate-Planning-with-PD-Presentation.pdf
