What Does Signature of Responsible Party Mean for Assisted Living?

Usually, at least one form in the paperwork signed when a senior moves into assisted living aims to determine who will be financially liable for any costs if a resident is somehow unable to pay. The responsible party may also be liable if Medicaid stops covering assisted living fees. If a senior’s family members aren’t careful, they could end up legally promising to pay for any outstanding bills.

However, when you enroll your loved one in assisted living, it’s important to know that the senior is most often their own responsible party when it comes to signing any of the required documents. This is true even if they have a designated power of attorney.

The assisted living contract

Given the sometimes complicated nature of contracts, an individual who signs a senior living contract as a “responsible party” may inadvertently be agreeing to be responsible for any bills that go unpaid. Costs associated with unpaid bills can include late fees, attorney fees incurred by the facility as they attempt to collect outstanding balances, and more. A senior living community could also try to bill for repairs to a senior’s living space, cleaning and disposal fees, etc.

Generally, however, a responsible party can expect to be asked to retrieve their loved one’s items if they pass away. They’re also typically asked to respond to questions or requests made by the community with regard to the loved one’s care.

Every contract can be different, and all should be read carefully, but a responsible party shouldn’t be financially liable unless that term is referred to alongside “guarantor.” A guarantor is a person who agrees to pay from their own assets if another party can’t. In this case, if a senior living resident can’t. Unless you sign as a guarantor, ^[01] you shouldn’t be responsible for the charges.

Here are a few things to remember when you’re reviewing assisted living contracts:

• The facility can’t force you to sign forms accepting guarantor status once your parent has been admitted. If your parent is already receiving ongoing assisted living care, the facility shouldn’t ask you to sign additional forms that ask you to take financial responsibility, according to federal law.^[02]
• Don’t sign anything until you’ve read everything beforehand. Ask the community well in advance what papers your loved one will have to sign at move-in. And, ask for copies of all paperwork beforehand so you have ample time to review.
• Focus on the fine print, and consider working with an elder care attorney. Make sure the contract language doesn’t say that you’re responsible financially or that you guarantee payment if, in fact, you can’t afford the cost.

Is assisted living the right fit?

If possible, it’s best to have your loved one sign their own documents. If they’re unable to sign due to mental and/or physical limitations, someone else — an authorized signatory or signer — may sign for them. This signing party is typically someone who has been assigned power of attorney.

This kind of situation, where the care recipient can’t sign for themselves, can introduce a lot of risk for the signer. An example: A contract may require the responsible party to communicate business information and manage assets for the senior living at the community. However, if these things don’t happen in a manner as outlined in the contract, the community may make a claim against the responsible party stating that they didn’t fulfill the contract. Perhaps a payment to the community is significantly late — if the responsible party is, per the contract, also the guarantor, then they may be, by default, liable for unpaid bills and associated fees.

In the end, it’s possible to set up many different arrangements with an assisted living community, sometimes whether you are the designated power of attorney or not. For example:

• You sign the documents on behalf of your loved one, but your loved one is still financially responsible.
• You sign as an emergency contact and advocate for your loved one without signing as an assisted living responsible party.
• You sign the documents and knowingly commit to being financially responsible.
• Your loved one signs the documents and is financially responsible.

Assisted living questions? Get expert help

As you and your loved one tour communities, remember to ask detailed questions about any agreements you would be expected to sign. A Place for Mom’s Senior Living Advisors can answer questions, provide more options, and support you throughout the process. When the time comes to move, if you choose to sign as a responsible party, it’s important to read and thoroughly understand the contract and, if you have any doubts, consult an attorney before making any decisions. If your loved one cannot sign their own papers, make sure you’re specifying your involvement in their financials before you sign.