I have an older family member, turning 60 this year, who has just been approved for disability. She took a whack to the noodle a few years back and has memory issues which lead to difficulty managing her own finances. The social security office made me her representative payee. I have been reading up on their handbooks and various online articles to try and learn some of the ins and outs.
One thing I'm still struggling with is the handbook seems to contradict itself. On the one hand, it says to use the money in the best interest of the person. On the other hand, it says you cannot save more than $2k. That doesn't even allow for a 1-month emergency fund to roll over year to year, let alone a 6-12 month emergency fund or to save for large purchases or medical expenses. There is a fairly hefty amount of back pay involved. There are only so many big ticket items that need addressed currently, like a new roof and making her house safer. It seems like Uncle Sam is requiring that all of this bigass chunk of back pay gets spent now. Even though common sense says that it will be needed more down the road when appliances need replaced or the car needs fixed.
I came across some advice for payees where the disabled person is younger, there is an ABLE account which allows you to save the person's money for them. I don't think this account is applicable for my situation, since this person became disabled in her late 50s. Does anybody have any similar strategies for a representative payee to save money in my situation?
One idea I had was to buy things for her that hold their value well and could be sold later. Granny could use a few HK sears and RDIAS, if you know what I'm sayin'
The next thing I need to figure out is how to navigate medicare, medicaid, obamacare, part A, part B, and whatever else. I am still in my 30s and have not yet had to learn about all these. Are there special financial advisors who specialize in these old geezer topics? I assume there has to be, but I dont know what they would be called or how to search out a good one. I need to get informed so I can make the best decisions to get granny setup with health coverage.