When someone enters a long-term care facility due to their age or medical condition, they put their lives in the hands of the facility’s owners and employees. Sadly, there are bad actors who exploit the vulnerability of residents for their own financial gain. In some cases, unsuspecting individuals sign over financial control to a facility or individual employee when they become a resident. Now, New Jersey lawmakers are considering a significant legislative change aimed at protecting elderly people and others who can no longer live on their own. 

Passed unanimously in the State Senate, S-1962 prohibits owners and employees of New Jersey long-term care facilities from managing the financial affairs, or acting as attorney-in-fact, for a resident unless they are appointed conservator or guardian for that person by the Superior Court. The primary motivation behind this proposed law is to safeguard against conflicts of interest and potential abuse of power. Caregivers often develop close relationships with the individuals they care for, which can create situations where the caregiver might be tempted to act for their own gain rather than what is best for the resident. 

The bill also directs the State’s Department of Health to create a standard resident admission agreement form, to be used by all facilities in the state. An abbreviated version can be used for stays lasting fewer than 14 days. Aside from this standard form, prospective residents could not be compelled to sign any other documents as a condition of admission, including a mandatory arbitration agreement. Separate from the admission paperwork, residents must be informed that they have the option to retain an attorney to assist with applications for long-term care benefits. 

Conservatorship grants a person legal authority over a ward’s financial matters, while guardianship gives someone the legal authority to make decisions related to someone else’s medical treatment and personal care. In situations where a long-term caregiver seeks to establish conservatorship or guardianship, the Superior Court, in consultation with the Office of the Public Guardian for Elderly Adults. will be tasked with ensuring that the petitioner does not have a conflict of interest. This could trigger more thorough investigations into backgrounds of prospective conservators and guardians, as well as their relationship with the patient, along with greater oversight once a someone is appointed.

If you believe that guardianship or conservatorship might be required to protect someone close to you whether they are in a long-term care facility or not, it’s wise to speak with a qualified attorney. You can also learn about creating a trust or some other mechanism to address the high costs associated with residential care. 

Parsons & Nardelli in Red Bank handles a full range of matters related to guardianship, conservatorship and long-term care funding. For a consultation, please call (PHONE) or contact us online to schedule a meeting. Our attorneys assist clients throughout New Jersey, including Monmouth, Ocean and Middlesex counties.