Formalizing the Caregiving Arrangement

How can I formalize the arrangement? 

Consider formalizing your arrangement with your financial caregiver so your caregiver has the legal authority to make financial decisions on your behalf. A formal arrangement also mandates that your caregiver has a fiduciary duty, or an obligation to serve in your best interest. 

Options that may be applicable to your situation include:

• Power of Attorney — A legal document that authorizes someone you choose to act on your behalf to help manage your affairs. 
• Revocable Living Trust — A legal document that you create during your lifetime that indicates how you want your assets handled at the time of your death. It is revokable, meaning you can make changes to it at any time. 
• Social Security Representative Payee — A person who is appointed to manage payments on behalf of social security beneficiaries. 
• Veterans Affairs Fiduciary — A person appointed by Veterans Affairs who helps veterans or beneficiaries manage their finances.

How can I help my financial caregiver?

• Have conversations with your caregiver to discuss your finances and share your wishes.
• Develop a budget that includes all income and expenses. Be sure to highlight bill due dates.  
• Create a financial inventory by organizing your financial records, expenses, and other critical information. 
• Consider automatic payments for regular bills, such as utility, insurance, or mortgage payments. 
• Ensure your will and beneficiary designations are up to date.

Where can I learn more?

Check out the following resources:

• Thinking Ahead Roadmap 
• Consumer Financial Protection Bureau
• National Council on Aging
• AARP
• Family Caregiver Alliance