Moving to assisted living is a major transition, both for an older adult and for the family members or loved ones helping with the decision. While much of the initial focus may be on finding the right community, comparing amenities, and determining the appropriate level of care, there are also important legal and financial issues to address.

For Connecticut families, planning ahead can make the transition smoother and help protect an older adult’s finances, healthcare wishes, and long-term care options.

Whether assisted living is needed soon or you are simply preparing for the future, here are some important steps to consider.

 

Related Article: What Adult Children Should Know Before Taking Care of Aging Parents

 

1. Review Powers of Attorney

A Power of Attorney allows someone you trust to handle financial and legal matters on your behalf. This document can become especially important when an older adult moves into assisted living or begins relying on family members or others for help managing finances.

Depending on how it is drafted, an agent under a Power of Attorney may be able to:

• Pay bills and manage bank accounts
• Communicate with insurance companies
• Handle real estate matters
• Manage investments
• Sign certain contracts
• Assist with financial and long-term care planning

Having a Power of Attorney does not necessarily mean giving up control. Rather, it creates a legal framework that allows a trusted person to help when necessary.

Families should have existing Powers of Attorney reviewed periodically to make sure they still reflect the individual’s wishes, comply with current law, and provide the authority that may be needed.

 

2. Review Advance Healthcare Directives

Financial planning is only one part of preparing for assisted living. Healthcare planning is equally important.

An Advance Healthcare Directive can identify who should make healthcare decisions if an individual becomes unable to make or communicate those decisions independently. It can also provide instructions regarding medical care and end-of-life wishes.

Before moving into assisted living, consider whether the appropriate healthcare documents are in place and whether the people named in those documents are still the right choices.

It is also important to make sure trusted loved ones know where these documents are located and that appropriate healthcare providers have access to copies when necessary.

 

Related Article: Financial and Medical Independence: Why Powers of Attorney Matter

 

3. Understand the Cost of Assisted Living

Assisted living is generally different from a nursing home. Assisted living communities typically provide housing, meals, supervision, personal care assistance, and other supportive services, while nursing facilities provide a higher level of medical and skilled nursing care.

Costs can vary significantly depending on the community, residence type, services required, and level of care.

Things to inquire about with a prospective community are detailed explanations of:

• Monthly housing charges
• Charges for different levels of personal care
• Medication management fees
• Transportation costs
• Community or entrance fees
• Additional charges as care needs increase
• Policies regarding future rate increases
• If the community accepts Medicaid should the person have to transition to state assisted care

Understanding the full cost structure can help families develop a more realistic long-term financial plan.

 

4. Determine How Care Will Be Paid For

Many families are surprised to learn how much long-term care may need to be paid from personal resources.

Potential sources of payment may include:

• Income and retirement benefits
• Savings and investments
• Proceeds from the sale of a home
• Long-term care insurance
• Certain veterans’ benefits, when eligibility requirements are met
• Medicaid programs, when applicable

Medicare generally does not pay for long-term assisted living simply because an older adult needs help with everyday activities.

Connecticut does have Medicaid programs that may help eligible individuals receive certain services in community-based settings, but eligibility rules and available benefits can be complicated. The rules can also differ depending on the type of care and living arrangement involved.

Before making major financial decisions, it may be helpful to speak with a Connecticut elder law attorney about the available options.

 

Related Article: Does Medicare Cover Nursing Home Costs in Connecticut? (2026 Update)

 

5. Be Careful About Transferring or Giving Away Assets

When families begin worrying about long-term care costs, one common reaction is to transfer real property, give money to children, or move assets out of an older adult’s name.

These decisions should not be made casually.

Asset transfers can have significant consequences, particularly if Medicaid-funded long-term care may eventually be needed. They may also create tax, creditor, control, and estate planning concerns.

There is no single asset-protection strategy that is appropriate for every family. Planning should consider the individual’s health, finances, family circumstances, housing needs, and potential future care requirements.

 

6. Review the Home and Other Major Assets

A move to assisted living often raises an important question: What should happen to the family home?

Possible options may include keeping it, selling it, renting it, or transferring it as part of a broader estate or long-term care plan.

The right choice depends on many factors, including whether a spouse or another family member remains in the home, how much money is needed to pay for care, tax considerations, and whether Medicaid planning may become necessary.

Before selling or transferring real estate, consider how that decision fits into the person’s overall financial and estate plan.

 

Related Article: Navigating Medicare Coverage for Nursing Homes and Assisted Living

 

7. Review the Assisted Living Agreement Carefully

Before signing an agreement with an assisted living community, read the contract and related documents carefully.

Families and loved ones should understand issues such as:

• What services are included in the monthly fee
• Which services cost extra
• How fees can change
• What happens if the resident’s care needs increase
• Circumstances under which a resident may be required to move
• Refund and termination policies
• Procedures for complaints or disputes

Do not assume that every assisted living community structures its fees and services the same way.

 

8. Update the Overall Estate Plan

A move to assisted living is also a good opportunity to review the entire estate plan.

That review may include:

• Last Will and Testament
• Trusts
• Power of Attorney
• Advance Healthcare Directive
• Beneficiary designations
• Real estate ownership
• Bank and investment account titling
• Life insurance
• Plans for personal belongings

An estate plan created years ago may no longer reflect current assets, family relationships, healthcare concerns, or long-term care goals.

 

Related Article: 10 Reasons You May Need an Elder Law Attorney in Connecticut

 

Planning Ahead Can Give Families More Options

Families often begin legal and financial planning only after a crisis occurs, such as a fall, hospitalization, dementia diagnosis, or sudden inability to live independently.

Whenever possible, it is better to begin the conversation earlier.

Planning ahead provides more time to compare assisted living communities, understand costs, review legal documents, evaluate long-term care benefits, and make thoughtful financial decisions.

For Connecticut families, an elder law attorney can also help coordinate estate planning with potential long-term care needs so that decisions made today do not unintentionally limit options later.

At Reed Wilson Case, we help Connecticut seniors and their families navigate estate planning, elder law, Medicaid planning, and the legal issues that often accompany transitions in care. If you or a loved one is considering assisted living, reviewing your legal and financial plan before making major decisions can help you approach the transition with greater confidence.

Disclaimer: The information provided in this article does not, and is not intended to, constitute legal advice and is for general informational purposes only.

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