As more adults step into the role of financial caregiver for ageing parents, expert Beth Pinsker shares insights from her deeply personal experience. From legal hurdles to the rising cost of care, her account highlights the need for early preparation and practical awareness.
The financial responsibilities associated with end-of-life care often arrive with little warning and few instructions. Many caregivers find themselves overwhelmed, balancing emotional strain with the sudden demand for financial decisions.
Beth Pinsker, a certified financial planner and financial columnist, became her mother’s financial caregiver after an unexpected health crisis. Her new book, My Mother’s Money: A Guide to Financial Caregiving, outlines a first-hand account of navigating legal, medical and financial systems, offering advice rooted in lived experience.
Legal Documentation Remains a Major Barrier in Caregiving
Despite having the correct legal documentation in place, Pinsker recalls being denied access to her mother’s bank account during a medical emergency. According to her, even when armed with a durable power of attorney, “the bank just said no.” This refusal illustrates a broader issue: institutions are often reluctant to accept third-party authority, even when documents are legally valid.
Caregivers are advised to act early, ensuring all necessary papers — including healthcare proxy, HIPAA authorisation and durable power of attorney — are not only completed but also recognised by financial and healthcare institutions. Pinsker emphasised that power of attorney does not always guarantee seamless access, particularly when banks adopt internal policies that override external legal documents.
In addition, joint account access remains contentious. Although adding a caregiver as a joint account holder simplifies transactions, it also legally designates those funds as shared assets. According to Pinsker, this can affect financial aid applications or trigger disputes between siblings.
“With power of attorney, you could be held to account for whatever you do in the account, but with joint accounts, you can just go in and take money. In a lot of families, that’s a recipe for financial fraud.” she noted. As such, power of attorney may offer more legal clarity and oversight, despite being harder to implement.
The Real Cost of Long-Term Care Remains Widely Misunderstood
Financial caregiving often begins informally but quickly escalates into a significant financial commitment. Pinsker recounted paying over $3,000 per week for round-the-clock home care — a figure that eventually rose above $4,200 as care needs increased. These costs do not include additional expenditures such as overtime, holiday pay, or staff rotation to prevent burnout.
Misconceptions about Medicare coverage further complicate planning. “Does Medicare cover nursing care? The answer is no,” said Pinsker. While Medicare provides limited support for hospital stays and rehabilitation, it does not fund extended nursing or hospice care. Pinsker’s mother was initially denied hospice access due to cost projections — a decision only overturned by switching providers.
