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Our parents are in their 80s and we are trying to prepare for the day when they might not be mentally acute enough to handle healthcare or financial decisions. They all have a living will and have assigned POA to family members but should we also advise them to assign an authorized rep on SS and Medicare?
We just want to cover all bases and we are blessed with trustworthy family members.Thank you

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SSA rep payee is something your folks can in person request to be done at a SSA office. SSA now has an “advance designee” system in which the folks can name up to 3 individual to be their rep payee for when needed. I think that would be a good thing as SSA does not ever recognize POA. Fwiw SSA has actually lessened some of annual report in detail requirements of rep payee program. For elderly SSA it’s now a single snail mail letter that is sent out which the rep payee responds to. For the rep payee for minors, for disabled adults, for spouses…. all those no longer have to do the annual report stuff. Huge reduction paperwork now for this program.

Become a signature on all their bank accounts. So it totally stays notated as their SS# for ownerships, but you are a signature on them. This way if you need to move $ or write a check or get them a fresh debit card, you can. Also have all their bank accounts to be POD / pay on death to you. Personally I found that my having my own account at the same bank was a really good idea, as you could easily have all available to you to online monitor, do transfers, pay bills. And when they die, that balance in their account goes pretty seamlessly over to your account as you are the POD on record.

IF they have any investment accounts, review them to have whomever is their POA to be listed as the primary after death beneficiary & NOT each other as beneficiary*. Change if need be. If their financial advisor doesn’t know you, have the folks give them a call and say you will be contacting them; and then you ask if you need to do fresh paperwork to establish your POA and review the accounts and beneficiary status. Most have their own set of POA and other designee paperwork that you have to fill out to do anything more easily.

* maybe your folks have oodles of $ so the idea of ever filing for LTC Medicaid is not a concept, but ya never know…. so because of this having you or your siblings named as the beneficiary of life insurance policy, as beneficiaries of their individually owned investment accounts means the $ goes outside of probate to you. Not to the now widowed spouse. It gives them less assets so if they should need to file for LTC Medicaid they have less “spend down” to do.
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LakeErie Aug 18, 2024
Igloo, you did pretty good until you started talking about making the beneficiary of investment someone other than the surviving spouse. The purpose of this, if I understand you, is to avoid additional funds for spend down for Medicaid? Why do you think someones life earnings in an account should not go to them for their enjoyment and care?
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When my brother was ill he had/we had Medicare send any notifications to me, his POA. They sent them both to HIM and to ME, so I knew what was going to him. We had to sign papers for that and he had to be competent.

If you need to be representative payee for SS do look on their site where SS tells you how to do this and what you need. It cannot be done UNTIL your parent is no longer competent to manage his/her own SS, and then is done with letters from the doctors to prove incompetency.
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Your POA's will work with Medicare but they won't with the Social Security office, so you will need to have your parents appoint you to be either their official "representative payee", where you will manage their payments if they aren't able or their "official representative" to speak with social security. With both a form SSA-1696 must be filled out.
It sounds like you are a "ducks in a row" kind of person like me. It's always best to be prepared.
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Fyi should one or both parents have to go into a skilled nursing facility the filing for medi-cal has changed. So what ever you do DONT spend down. Medi-cal can only go by their income. If they have money in a savings medi-cal can only count what the saving has earned not the savings they have.you do not have to show bank information. If you own property you rent out what you make as an income they count not the property itself. There are advocates that charge a fee to assist with that.
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uninformed88 Aug 19, 2024
How come you say bank info does not need to be shown? Is that every state? they ask me to give them my parents' 5 years of banking statements? We are in ny
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Becoming personal rep for SS automatically covers Medicare. Yes, if they agree this would definitely make everything easier if someone has to step up to assist them. @Igloo 572 did a good job with suggestions and was right in that they can predesignate someone in advance without releasing their rights. I am personal rep for my husband and I have already predesignated our sons for myself. We too are blessed with trustworthy sons. The only thing I would change is the POD on any account (jointly owned by your parents) should include each sibling.

As far as beneficiaries of investments, we placed ours into a Trust with our sons as the trustees. The trust is the beneficiary of our insurance policies and investments so that everything is still there for the benefit of the surviving spouse and anything left goes to our sons.

Be careful making adult children beneficiaries because even if there is a surviving spouse, it would then go to the children. I would hope each one would use it still to benefit the parent but they don't have to. The funds are then vulnerable to any lawsuits (think car accident), bankruptcies etc. the children personally have to deal with and the surviving parent has lost their savings.

You may want to run your concerns by the attorney who drew up their papers if they were an estate/elder care attorney. If not, find an estate/elder care attorney to advise you. If their papers are older they may need to be updated to reflect any law changes in their state.
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Isthisrealyreal Aug 18, 2024
Did your attorney discuss the tax liabilities on naming the Trust beneficiary for certain types of assets?

I can not remember now but, we were informed that we needed to change that on, I think, our retirement accounts or it would be taxable.

Unfortunately, I do not keep certain information in my noggin after everything has been dealt with. I would suggest that you verify that you haven't created a tax liability. Just my experience.
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For my mom, I got away without while I was POA and on her bank account. I already set mine up. I was able to do it on the web site since all of my info is there. Every year SS sends me notification to review. You can set up your parents with them at your side
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If you look on the social security website you’re not supposed to handle anyone’s social security unless you are representative payee……not every knows or does this. And when you are the payee you’re supposed to keep detailed records because they can request them
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KPWCSC Aug 18, 2024
We were told by SS and our credit union that a special account had to be set up properly and the funds direct deposited. We did that, then set up withdrawals through the credit union's "BillPay" program to pay as many of the regular bills each month since it is supposed to be spent on his behalf. So far, I have never had to provide any info to SS but if needed, I would just print out all the statements. This way I don't have to do any detailed record keeping.
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I became my friend-companion's 'everything' legally speaking (he had no one else). I wanted to ensure that I would be legally able to be a part of his life and decision making. I wasn't going to let him be a ward of the state.

It is a bit different talking about a parent(s) which one would presume an adult child/ren would take on these responsibilities. Friend or family, it is or feels the same to me. You want to ensure that everything is set up legally so you can make the best decisions on their behalf / when they are unable to.

POA
Fiduciary (VA) - Veteran's Admin
Soc Sec Payee Representative

I kept impeccable records.
Kept every receipt.
You cannot be too careful in these financial/legal matters.

If you have questions about how to proceed, talk to an attorney specializing in elder estates / trusts. (Any attorney who works with elder needs).

Gena / Touch Matters
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Absolutely. If your parents have a home,property money you should consider having them make a trust that way there is no probate. I know as my sons father passed away and it took 3year with no family issues to get things taken care of. Courts are so far behind its insane. Is the living will registered with your court? If they have retirement might want to ck to see if they have their own poa paperwork otherwise you might have issues their.
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Seems like you have bases covered. Talk to a lawyer in your area for specifics - because different county and state/province rules may require different legal documents.
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