The words you'll hear, explained

Durable power of attorney for finances

A signed document that names a trusted person, called the agent, to handle money matters: paying bills, managing bank accounts, filing taxes. "Durable" means it keeps working if your loved one later can't make decisions. It ends at death, when the executor of the will takes over.

Why it matters: without one, even a spouse or adult child may have no legal right to manage accounts that are in your loved one's name alone.

Will, living trust and probate

A will says who receives property after death and names an executor. It usually goes through probate, a court process that can take months. A living trust holds property during life and can pass it on without probate. Retirement accounts and life insurance go to the beneficiaries named on their forms, whatever the will says.

Conservatorship or guardianship

If someone can no longer make decisions and has no valid power of attorney, a court can appoint a person to decide for them. California calls this a conservatorship; many states call it a guardianship. It means court filings, fees and regular reports to the court. Signing powers of attorney while your loved one still can is the usual way to avoid it.

Healthcare power of attorney (healthcare proxy, healthcare agent)

Names one person to make medical decisions if your loved one can't. A good agent knows their wishes and can stay calm under pressure. Many people also name a backup.

Advance directive and living will

Written instructions about the care someone wants, or doesn't want, if they can't speak for themselves, such as a breathing machine or tube feeding. Many states combine the living will and healthcare power of attorney into one form called an advance directive. Free state forms are widely available, and many don't require a lawyer.

POLST (also MOLST or POST, depending on the state)

A medical order, signed by a clinician and the patient, for people who are seriously ill or frail. It tells emergency crews and hospitals which treatments to give. It is often printed on brightly colored paper and kept where responders can find it, such as on the fridge.

HIPAA authorization

A form that lets doctors, hospitals and insurers share health information with the people your loved one names. Privacy rules already let providers talk with family members involved in care in many situations, unless the patient objects. A signed authorization removes doubt, and some offices and insurers ask for one.

Medicare

Federal health insurance for people 65 and older and some younger people with disabilities. It covers hospital stays, doctor visits, tests, and short-term skilled care after a hospital stay.

Medicaid (Medi-Cal in California)

A program run by each state with federal funding, for people with limited income and savings. It is the main public payer for long-term care such as nursing home care, and many states also cover some care at home. Rules on income, assets and gifts differ by state. Some people qualify for both Medicare and Medicaid.

Custodial care, and why Medicare usually won't pay for it

Custodial care is everyday help with bathing, dressing, eating and getting around. Medicare generally doesn't pay for it when it is the only care someone needs. Most families pay for it themselves, or through Medicaid, long-term care insurance or veterans benefits.

Inpatient or observation status

A hospital patient can be formally admitted as an inpatient, or kept "under observation" as an outpatient, even after nights in a hospital bed. The difference affects what Medicare pays, including whether it will cover a nursing facility afterward. Hospitals must tell Medicare patients in writing if they are under observation for more than 24 hours.

Skilled nursing and rehab after a hospital stay

Medicare can cover care in a skilled nursing facility when your loved one needs daily skilled care, such as therapy or wound care, after an inpatient stay of at least three days in a row. Observation days don't count toward the three. Coverage can last up to 100 days, with a daily copay after day 20, and it ends sooner if skilled care is no longer needed.

Discharge planning

The hospital's plan for where your loved one goes next and what help they will need. A discharge planner or social worker leads it. You can take part, ask questions and say if the plan won't work at home.

Palliative care and hospice

Palliative care focuses on comfort and quality of life for anyone with a serious illness, at any stage, and can go alongside treatment meant to cure. Hospice is comfort care for someone whose doctor expects they have six months or less to live if the illness runs its usual course, and who chooses to stop treatment aimed at a cure. Medicare covers hospice, and people can leave hospice and return later.

Home health care

Medical services at home ordered by a doctor, such as nursing visits or physical therapy. Medicare can cover it part time for people who have trouble leaving home and need skilled care.

Home care (personal care, in-home support)

Help with daily life at home: bathing, dressing, meals, errands and company. Families usually hire it from an agency or directly, by the hour. Our Coming Home checklist walks through planning it.

Assisted living, memory care and nursing homes

Assisted living offers a private apartment or room with meals and help with daily tasks. Memory care is a secure setting for people living with dementia, often inside an assisted living community. A nursing home provides 24-hour nursing care. Medicare doesn't pay for assisted living or long nursing home stays. Medicaid can cover nursing home care and, in some states, some assisted living services.