Planning Ahead for Life’s “What-Ifs”

According to the Alzheimer’s Association, one in three seniors will die with dementia.
It’s a staggering statistic — and when combined with increasing life expectancy, it highlights an urgent truth: we must plan ahead for the possibility of diminished capacity and how it might impact our finances and Social Security benefits.

More than 6.5 million Americans aged 65 and older currently live with Alzheimer’s, and over 11 million provide unpaid care for loved ones affected by dementia.
These realities underscore why preparing early — before health or cognitive decline limits your ability to make decisions — is essential to protect your income, your assets, and your independence.

Why Protecting Your Social Security Benefits Is Critical

Your Social Security payout is a key component of your long-term financial security.
But without proper planning, diminished capacity, disability, or even unexpected medical events could jeopardize your ability to access or manage those benefits effectively.

The good news: With a few important legal and financial safeguards in place — such as powers of attorney (POAs), medical directives, and a representative payee designation — you can protect yourself, your family, and your benefits for the future.

Step 1: Protect Yourself with a Power of Attorney

A power of attorney (POA) is one of the most powerful tools in financial planning for aging adults.
It allows you to appoint a trusted person (known as your agent or attorney-in-fact) to manage your finances, property, or healthcare if you become unable to do so.

There are several types of POAs, each serving a specific role:

• Conventional (Limited) POA: Grants specific powers for a defined purpose or time.
• Durable POA: Remains effective even if you become incapacitated — crucial for long-term planning.
• Springing POA: Takes effect only if a specific event (like incapacity) occurs.
• Medical POA: Authorizes decisions regarding healthcare and medical treatment.
  

Having these documents in place ensures that your wishes are followed and your financial life — including your Social Security and investments — remains secure.

Tip: Review and update your POAs regularly as your life circumstances, health, or family dynamics change.

Step 2: Protect Your Adult Children with the Right Documents

Many parents are surprised to learn that once a child turns 18, they are legally considered an adult — and parents lose the automatic right to access their medical or financial information.
That means if your college-aged child were in an accident or hospitalized, privacy laws (like HIPAA) could prevent you from receiving updates or making medical decisions.

The solution:
Set up a durable power of attorney and medical directive for your adult child.
These documents allow you to handle healthcare and legal matters if they’re unable to — ensuring you can step in quickly and legally in an emergency.

Step 3: Protect a Disabled Senior with a Representative Payee

When it comes to Social Security benefits, a power of attorney or guardianship is not always enough.
The Social Security Administration (SSA) requires a special designation — called a Representative Payee — for individuals who can’t manage their benefits on their own.

A Representative Payee:

• Receives and manages Social Security payments on behalf of another person.
• Ensures those funds are used exclusively for the beneficiary’s needs (like housing, food, and healthcare).
• Keeps detailed records for the SSA.
  

If you believe a loved one may need this support, you can apply through your local Social Security office using Form SSA-11 and provide documentation explaining why the assistance is necessary.

Typically, a family member or trusted friend serves as the payee. If that’s not possible, the SSA can assign a qualified organization.
It’s important to remember that this role only covers the management of Social Security benefits — not medical, legal, or other financial decisions.

Learn more: The SSA provides training videos, downloadable guides, and FAQs at ssa.gov.

Why These Safeguards Matter

Failing to plan ahead can have lasting financial consequences. Without proper legal documents or a designated payee:

• Benefits can be delayed or mismanaged.
• Family members may face legal barriers to assisting you.
• Critical financial decisions could be made by strangers or courts instead of trusted loved ones.
  

By preparing today, you maintain control over your future — protecting both your income and your independence.

Planning Today for Confidence Tomorrow

Planning for incapacity or long-term care isn’t about expecting the worst — it’s about protecting what you’ve built and ensuring your wishes are honored.

At Carver Financial Services, we guide clients through every stage of this process — from establishing POAs and coordinating with estate attorneys to aligning investment strategies with long-term care needs.
Our goal is to help you preserve the wealth you’ve earned and safeguard your Social Security income for life.

Plan early. Protect what matters. Live with peace of mind.

If you or a loved one need help preparing for the future — or simply want to review your plan — our team is here to help you create a strategy that aligns with your vision and protects your legacy.

Any opinions are those of Randy Carver and not necessarily those of Raymond James. This material is being provided for information purposes only and is not a complete description, nor is it a recommendation. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete.