Shanghai has launched an eldercare support model that combines advance guardianship with a special needs trust to help families in which older adults care for relatives with disabilities or long-term care needs.

The initiative, piloted at a community-based eldercare facility in Ruijin'erlu subdistrict in Huangpu district is designed to address care and financial security concerns among such families.

An 81-year-old man surnamed Zhang has long cared for his wife, who lacks capacity for civil conduct, and his son, who has a Level 1 mental disability. As their sole guardian, Zhang worried about care arrangements and financial security for his family should he become incapacitated or pass away.

To address these concerns, Zhang signed an advance guardianship agreement with the local neighborhood committee and the notary office, specifying that the designated guardian would make medical and care decisions once Zhang loses capacity.

He also placed assets into a trust account, with the trust company responsible for making targeted payments for living expenses, nursing fees, and other needs strictly according to the agreement.

The model was developed by Shanghai Trust, a subsidiary of Shanghai Pudong Development Bank, in collaboration with Huangpu district civil affairs authorities, the local notary office, and the eldercare institution. It integrates asset segregation, execution of personal wishes, entrusted services, dual supervision, and elder-friendly services.

The arrangement separates personal care from financial management: the advance guardianship governs care-related decisions, while the trust manages payments. The notary office and the neighborhood committee jointly supervise the arrangement, reducing risks that can arise when care decisions and financial control are managed by a single party.

Beyond families in which older adults care for family members with disabilities, the model may also benefit all-elderly households, including those whose members live alone, have limited family support, face physical or cognitive disabilities, or have children living overseas.

Source: Shanghai Observer