The Legal and Financial Planning Families Should Do Before Transitioning to Assisted Living

Making the transition to assisted living is a major life change—one that requires more than just emotional preparation. To protect your loved one’s well-being and assets, it's crucial to address important legal and financial steps before the move.

At Psalm 23 Home Care, we help families throughout El Lago, Clear Lake, League City, Seabrook, Kemah, and South Houston navigate the details of assisted living with confidence and clarity. Below is a comprehensive guide to the legal and financial planning your family should do to ensure a smooth and stress-free transition.

1. Establish Durable Power of Attorney (POA)

The most important step and this is why we listed it as number 1. A durable power of attorney allows a trusted family member or representative to make financial and legal decisions on behalf of your loved one if they become unable to do so. This document is essential for:

• Managing bank accounts

• Handling real estate matters

• Making financial investments

• Coordinating assisted living payments

Make sure this is completed before any cognitive decline occurs, as it must be signed while your loved one is still legally competent.

2. Create or Update a Medical Power of Attorney

While a durable POA handles financial affairs, a medical power of attorney (sometimes called a health care proxy) allows someone to make medical decisions on your loved one’s behalf. This includes approving treatments, selecting providers, and making end-of-life decisions if needed.

It’s also wise to discuss advance directives, such as a Do Not Resuscitate (DNR) order or living will, so that your loved one’s preferences are respected.

3. Review Wills and Estate Plans

If your loved one has not yet created a will or trust, now is the time. A properly drafted will ensures that their assets are distributed according to their wishes. You should also review any existing estate plans to make sure:

• The executor is still appropriate

• Beneficiaries are current

• The plan reflects their current financial situation and preferences

Consulting an elder law attorney can help clarify options and ensure everything is legally sound.

4. Assess Long-Term Care Insurance and Veterans’ Benefits

Long-term care insurance can help offset the cost of assisted living—but not all policies cover personal care homes or assisted living facilities. Review the policy terms carefully and confirm:

• What services are covered

• Any elimination periods (waiting times)

• Daily or monthly benefit limits

Also, if your loved one is a veteran or the surviving spouse of a veteran, they may qualify for the VA Aid & Attendance Pension Benefit, which provides monthly payments to help cover assisted living costs.

5. Set a Realistic Budget for Assisted Living

This step might be the hardest for some people. In Texas, the average monthly cost of assisted living ranges from $3,000 to $4,500 depending on location, level of care, and amenities. Families in South Houston, Clear Lake, and nearby areas should factor in:

• Monthly rent and care services

• Medication management

• Meal plans and housekeeping

• Transportation and recreational activities

• Potential rate increases over time

Create a spreadsheet with all income sources (Social Security, pensions, retirement savings) and expenses to help estimate affordability over time.

6. Inventory Assets and Review Income Sources

Gather all documentation related to:

• Checking and savings accounts

• 401(k)s and IRAs

• Real estate holdings

• Life insurance policies

• Pensions and annuities

Understanding your loved one’s full financial picture will help you make informed decisions and avoid surprises during the transition.

7. Address Medicaid and Government Assistance Options

Medicaid may help cover assisted living for eligible seniors, but qualifications and benefits vary by state. In Texas, Medicaid typically covers community-based services, not all assisted living costs, unless it's through specific waiver programs.

Work with a Medicaid planner or elder law attorney to explore whether your loved one may qualify and how to structure their assets to meet eligibility requirements if needed.

8. Organize All Important Documents

Before the move, gather and organize all vital documents, including:

• Birth certificate and Social Security card

• Driver’s license or state ID

• Insurance policies

• Health records and prescriptions

• Power of attorney and advance directives

• Bank and financial statements

Having everything in one place can reduce stress and make the transition more efficient.

Let Psalm 23 Home Care Guide You Through the Process

At Psalm 23 Home Care, we understand that transitioning to assisted living involves more than just choosing the right facility. Let us be your one stop shop during this phase of life which without proper planning can be very difficult. Families across El Lago, Clear Lake, League City, Kemah, Seabrook, and South Houston trust us to provide compassionate, personalized care and reliable support through every step of the journey.

Whether your loved one is moving from their own home or another care environment, our team is here to help answer your questions and connect you with trusted local legal and financial experts.

Schedule a Free Consultation Today

Need help understanding what documents or plans you need before moving a loved one into assisted living? We’re here to help. Call Psalm 23 Home Care at 832-557-1067 to schedule a free consultation or private tour.

Together, we can prepare your family for a secure and confident future.