Moving to a senior living community is a major life event that often signals new routines, evolving health needs, and changes in how finances are managed. For seniors and their families, this transition can prompt a range of decisions, both emotional and practical. One important (but often overlooked) step is reviewing estate planning documents.
Estate planning isn’t just about preparing for the end of life. It’s about making sure a person’s wishes, finances, and medical needs are clearly documented and legally supported. After a move to senior living, it’s a good time to review these documents again and make sure everything is still aligned.
Why estate planning documents may need updates after a move
A change in residence can create ripple effects in many areas of life. Seniors may have new doctors, new living arrangements, different financial needs, or updated care goals. Reviewing estate plans regularly and after major life events is key to keeping them effective.
Common reasons for updates include:
- A new state of residence, as estate laws vary.
- A change in financial assets or property ownership.
- New health care providers or diagnoses.
- Shifts in caregiving or decision-making roles.
Next, we’ll go over some specific documents that seniors and their families should revisit after a move to senior living and explain why they might need attention.
Health-related legal documents
Health-related legal documents ensure that the right people can access medical information and make decisions if a senior becomes unable to do so themselves. These documents become especially important during a transition to senior living, when new doctors, diagnoses, or levels of care may come into play. Reviewing and updating them can help avoid confusion and delays in a health crisis.
HIPAA authorization
The Health Insurance Portability and Accountability Act (HIPAA) protects the privacy of medical records. Without a signed HIPAA authorization, even close family members may be blocked from accessing health information. This is different from a power of attorney because it only permits access, not decision-making.
Seniors who are moving into a community with on-site nursing or new doctors should ensure their HIPAA release is current and shared with the appropriate providers. This can help adult children or caregivers stay informed about health changes and coordinate care when needed.
Advance directive
An advance directive includes instructions for medical care if a person becomes unable to communicate their wishes. It often includes:
- A living will, which outlines preferences for medical treatment and end-of-life care.
- A medical power of attorney, which designates someone to make medical decisions.
Advance directives are especially important when someone is entering a care setting where medical intervention may become more frequent. If a senior has new care preferences or a change in health, it’s a good idea to update this document.
Medical power of attorney
A medical power of attorney (sometimes called a health care proxy) gives a trusted person the legal authority to make medical decisions if the senior is unable to. This is essential in emergency situations. If a senior has recently designated a new primary caregiver or if the previous agent is no longer available, this document should be updated.
Financial and property estate planning documents
Managing finances becomes more complex during a move to senior living, especially if a senior needs help paying bills, selling a home, or accessing income. Updating financial and property documents ensures that trusted individuals can step in when needed. It also helps prevent disruptions in care due to delays or gaps in financial planning.
Durable power of attorney
A durable power of attorney (POA) allows someone else to manage financial or legal affairs on the senior’s behalf. It remains in effect if the person becomes incapacitated, which makes it particularly relevant in the context of memory loss or chronic illness.
An updated POA may be needed if:
- The senior wants a new person to manage their finances.
- There are plans to sell the family home.
- They need help managing retirement distributions or long-term care payments.
Having an up-to-date POA can help avoid legal delays and ensure that someone trusted can act quickly if needed.
Payable-on-death designations
Many seniors set up their bank or investment accounts with payable-on-death (POD) or transfer-on-death (TOD) designations. This allows funds to pass directly to a named beneficiary without going through probate, the court-supervised process of distributing a deceased person’s assets.
It’s smart to review these designations if:
- A new account has been opened (e.g., to pay for senior living).
- The original beneficiary is no longer the best choice.
- Multiple adult children are helping with finances.
Trust documents
If a senior has a trust, moving to senior living may affect who manages it. For example, the trust’s original trustee may need to hand over control due to health reasons or new living arrangements.
Families may also want to:
- Revisit trust instructions for how money is distributed.
- Add or remove specific assets held in the trust.
- Name a successor trustee if the current one is no longer appropriate.
Retirement accounts
Whether it’s a 401(k), IRA, or pension, retirement accounts often play a major role in funding senior living expenses. Reviewing these accounts can help ensure that:
- Required minimum distributions (RMDs) are being taken.
- Beneficiary information is correct.
- Withdrawals align with the cost of living and do not jeopardize Medicaid eligibility.
Insurance and benefits planning
Health insurance and long-term care insurance benefits can play a significant role in covering the cost of senior living. Understanding what’s covered and making any necessary updates can help families avoid unexpected expenses. This section explains what to look for in Medicaid, Medicare, and private long-term care insurance policies.
Medicaid coordination
For seniors using Medicaid, eligibility hinges on income and asset limits. A move to senior living could affect those calculations. Medicaid planning may involve:
- Reassessing asset values (like the family home).
- Reviewing how costs will be paid (out-of-pocket vs. insurance).
- Coordinating with an elder law attorney if long-term Medicaid planning is involved.
Medicare coverage
Medicare is the federal health insurance program for most people over 65. While it does not pay for long-term care room and board, it may cover short-term medically necessary services, such as a stay at a skilled nursing facility for rehabilitation or home health care after an illness, injury, or surgery.
A move to senior living may trigger the need to review Medicare coverage:
- If a senior is switching from original Medicare to a Medicare Advantage plan, or vice versa, it’s important to check whether the new community’s providers and pharmacies are in-network.
- A new location may fall under a different Medicare Advantage service area, which could affect plan availability.
- Seniors using Medigap (supplemental) policies should also confirm whether their current plan still makes sense for their care needs and location.
- Any move between states requires reevaluation of Part D (prescription drug coverage) to ensure the preferred pharmacy and medications are still covered.
Long-term care insurance
If a senior has a long-term care insurance policy, it’s important to read the fine print. These policies may cover certain types of assisted living or in-home care, but benefits and exclusions vary widely.
Families should:
- Confirm what services are covered at the new residence.
- Understand any waiting periods or caps on coverage.
- Update contact and payment information with the insurer.
To be eligible for coverage, the policyholder usually needs to experience a triggering event, such as requiring help with two or more activities of daily living, like bathing, dressing, feeding, transferring, or ambulating.
Estate planning when only one spouse moves to senior living
When only one spouse enters senior living, estate planning becomes more complex. It’s a good time to revisit:
- Who has the authority to manage joint assets.
- Whether the spouse remaining at home is financially protected.
- How responsibilities are divided and documented.
Long-term care insurance, trusts, and durable POAs all play a role here. A thoughtful review ensures that both individuals are secure and supported, no matter who needs more care.
The importance of reviewing estate planning documents after a move to senior living
Moving into senior living doesn’t require a complete overhaul of an estate plan, but it is a meaningful time to review, reflect, and adjust. A few updates now can make the road ahead smoother and clearer for everyone involved.
Families don’t have to do this alone. An elder law attorney or financial advisor familiar with long-term care planning can help seniors and their adult children make updates that reflect their current reality and future wishes.
This information is for educational purposes and is not legal, financial, tax, or investment advice. It should not be substituted for information from professionals authorized to practice in your area. You should always consult a suitably qualified professional regarding your specific situation.
