As carers, our priority is often fully focused on providing the care needed by our loved ones. It can be a busy, stressful, and overwhelming time for both those receiving care and those giving it, with little thought for their own day-to-day life, never mind anything else outside of treatment and assisting with care.
However, it is also important to note that caring for elderly adults can have legal and financial considerations both while they’re alive and potentially after they’ve passed on too. If you are looking after someone, you need to start considering how you can best help manage their affairs and whether they do need help with that, whether that be managing money or, indeed, difficult decisions when it comes to the end of their life. This comprehensive guide aims to help you navigate caregiving’s legal and financial intricacies.
Power of Attorney
One of the most important parts of that is considering power of attorney. There are two different types of power of attorney, which essentially allow you as the carer to act on behalf of the person you are caring for. Power of attorney needs to be agreed upon by the person you are caring for prior to a person no longer having the mental capacity to take on responsibility for their affairs themselves, and those granted it must be over the age of 18.
It is actually useful to set up a power of attorney long before you have health issues, as it provides a comfort blanket and lets you know a person’s affairs are in good hands. This can be done through a solicitor.
- Power of Attorney for Property and Financial Affairs – The first type of attorney allows you to act on behalf of the person who has nominated you when it comes to looking after their money and property should the person you’re caring for no longer be able to manage it themselves. This includes managing bank accounts, paying bills, collecting benefits or pensions, and potentially selling their home if necessary.
- Power of Attorney for Health and Welfare – The other type of power of attorney allows a nominated person the authority to make medical decisions on behalf of someone else, often towards the end of their life when support and care are no longer improving their condition. This might involve decisions about medical treatments, moving into a care home, and life-sustaining treatment.
Understanding Wills
Having an up-to-date will is important as it ensures that there is clear instruction around a person’s money, property, and possessions when they do pass on. While it’s not the responsibility of a carer to sort a will for a loved one, and in reality, it’s a personal choice as to whether a person your carer wants one or not, it can make it a much easier process to deal with a person’s estate if a will is in place.
To help, you can set up a meeting with the person you’re caring for, if that’s possible, with a financial advisor or lawyer to help set out putting together a will. A will can prevent disputes among family members and ensure that the deceased’s wishes are respected. Moreover, it can guide funeral arrangements and appoint guardians for any dependents.
Managing Key Documents and Accounts
Alongside power of attorney, it can also be a good idea to have all key documents in one place, which will help family members at various points of care with different financial and legal considerations. For example, it may be that caring from home becomes too difficult, and a residential care home is best suited to their needs.
If that’s the case, you’ll then have all the information you need to start putting that in place. Should your loved one pass away, you have all the relevant documents to ensure that various companies and policies know this. Documents to gather can include:
- Birth certificate
- Passport
- Driving licence
- Bank statements
- Pension plans
- National Insurance number
- Insurance policies
While if a person has a pre-paid funeral plan this will also be useful when it comes to organising this for the person you’re caring for. Keeping these documents updated and accessible will save time and reduce stress during already challenging times.
Help Could Be Available
Finally, while it’s important to get the person you’re caring for finances and care in order, there may also be help available as part of your caring responsibilities. There is a range of government support out there for people who have carers, including Carer’s Allowance as well as things like Carer’s Credit, reduced council tax, and other discounts and grants that are well worth looking out for.
- Carer’s Allowance – Carer’s Allowance is a benefit for people who spend at least 35 hours a week caring for someone who is ill or disabled. The amount you can receive is modest, but it can help cover some expenses associated with caring.
- Carer’s Credit – Carer’s Credit is a National Insurance credit that helps carers fill gaps in their National Insurance record, which can affect their State Pension. This is particularly useful for those who might not qualify for Carer’s Allowance but still spend a significant amount of time caring.
- Reduced Council Tax and Other Discounts – Many local councils offer reductions in council tax for people who are caring for someone with a severe mental impairment or another qualifying condition. Additionally, there are various grants and funds available from charities and government programmes designed to support carers in their roles.
- Planning for Future Care Needs – It’s essential to think about the future care needs of your loved one. This includes understanding their medical condition and how it might progress, discussing their preferences for care, and exploring different care options. Planning ahead can prevent last-minute decisions and ensure that the care provided aligns with the wishes and best interests of your loved one.
- Care Needs Assessment – A care needs assessment, usually conducted by the local council, can determine what kind of support the person you care for might need. This assessment is crucial for creating a care plan that addresses both immediate and long-term needs, and it can identify services that might be available to support both the carer and the person being cared for.
Emotional and Psychological Support for Carers
Carers often experience significant emotional and psychological stress. It’s important to acknowledge this and seek support when needed. Various organisations offer counselling and support groups specifically for carers, providing a space to share experiences and receive emotional support.
- Counselling Services – Professional counselling can help carers manage stress, anxiety, and depression. Many charities and local authorities offer free or low-cost counselling services for carers. This can be an invaluable resource for maintaining mental health and resilience.
- Support Groups – Joining a support group can provide emotional relief and practical advice. Sharing experiences with others in similar situations can reduce feelings of isolation and provide new insights into managing care responsibilities. Many support groups meet in person, but there are also numerous online communities for carers.
- Respite Care – Respite care provides carers with a temporary break from their duties, allowing them to rest and recharge. This can be provided in various forms, including in-home respite care, residential respite care, and day care centres. Accessing respite care can prevent burnout and ensure that carers can continue to provide high-quality care in the long term.
The Importance of Self-Care
Taking care of oneself is crucial for carers. Balancing caregiving with personal time, hobbies, and social activities can help maintain physical and mental health. Carers should not feel guilty about taking time for themselves, as it ultimately benefits both them and the person they care for.
Health and Wellbeing
Regular exercise, a healthy diet, and sufficient sleep are fundamental aspects of self-care. Carers should try to maintain a routine that includes time for physical activity and relaxation. Mindfulness practices, such as meditation and yoga, can also help manage stress.
Social Connections
Maintaining social connections is important for emotional wellbeing. Carers should make an effort to stay connected with friends and family, even if it’s through phone calls or social media. Building a support network can provide practical help and emotional support.
Financial Planning for Carers
Caring responsibilities can have significant financial implications. It’s important for carers to plan their finances carefully to ensure they can meet their own needs as well as those of the person they are caring for.
Budgeting
Creating a budget can help carers manage their finances more effectively. This should include all sources of income, benefits, and allowances, as well as expenses related to caring. Keeping track of expenses can help identify areas where savings can be made.
Employment Considerations
Many carers have to reduce their working hours or leave employment entirely. It’s important to understand the financial impact of this decision and explore options such as flexible working arrangements or part-time work. Some employers offer carer-friendly policies that can help balance work and caring responsibilities.
Conclusion
Caring for a loved one is a profound act of love and commitment, but it comes with significant legal and financial responsibilities. By understanding and planning for these responsibilities, carers can ensure that they and their loved ones are protected and supported.
From setting up power of attorney to managing key documents and exploring financial support options, there are many steps carers can take to navigate these challenges. Additionally, prioritising self-care and seeking emotional support can help carers maintain their health and well-being.
Ultimately, being well-prepared and organised can reduce stress and provide peace of mind, allowing carers to focus on providing the best possible care for their loved ones.