These should be taken care of as soon as possible and, if the person you are taking into your care is able to help you, it will make the process go more smoothly. Keep in mind that when someone completes these documents, they are, in fact, giving up some control of their own lives. Only a very close friend or family member with no conflicting motives should be given these powers.

Letter of instruction
A letter of instruction provides important information and instructions a caretaker may need. It includes the contact information for close family and friends, a list of assets and liabilities, a list of insurance policies and information on all financial accounts.

Will
A will designates who will receive major assets after a person dies. It also includes direction regarding guardianship of any children under the age of 18. Smaller items such as heirlooms, furniture and other household goods, should be addressed in a separate letter. This letter of "directions to your executor" should be referred to in the will.

Powers of attorney
If the people under your care are unable to make decisions for themselves because they are somehow incapacitated, you will need to have power of attorney to make these decisions for them. Of course, they will need to create powers of attorney before they are actually needed.

There are two main types of powers of attorney. A Power of Attorney for Property enables your attorney to deal with your property in the way you set out. This is useful, for example, for a lengthy hospital stay. It gives a person, or people, authority to manage your finances and other legal affairs for you if you are not capable of managing them yourself. It can be long-term or short-term and allows the party that has power of attorney to access your bank account and use your money to take care of you, pay your bills, sign your tax returns, handle your investments and other important matters.

A Power of Attorney for Personal Care, or a "living will" gives the person you designate the authority to make any personal-care decisions for you that you are mentally incapable of making for yourself. These include the giving or refusing of consent to treatment. And it gives your attorney your "unequivocal authority" to take "extraordinary measures" to either keep you alive, or not.

Long-term care
For those who can no longer take care of themselves, long-term care is a broad term for many different options including nursing homes and in-home care. Long-term-care insurance is becoming increasingly popular as a way of easing the financial strain that long-term care can impose. Shopping around for long-term-care insurance is important because all policies are different and you will need to find one that will fit your particular needs and budget.

Services covered by long-term care
Long-term care usually consists of some combination of skilled care, intermediate care and custodial care. Skilled care is the most expensive service involving round-the-clock care by a registered nurse under the close supervision of a physician. Intermediate care is less intense and includes occasional nursing and rehabilitative care under the supervision of medical personnel. Custodial care is home care. It provides for the basic, non-medical needs of a patient such as cooking, bathing and other day-to-day needs.

Selecting an insurance provider

With the wide variety of services that are available, choosing the right insurance provider can be difficult. There are a few questions, however, that will help you decide.

How are the benefits paid? Are they sent directly to the provider or do you have to pay the charges and receive reimbursement?

Who determines if the patient needs home-health or nursing home care?

What level of care does the policy provide?

What is the waiting period from when the service begins to when benefits are paid?

Does the policy cover Alzheimer's disease and related disorders?