As the American population ages, adult children of seniors are scrambling to help their aging parents and protect themselves against the uncertainty in the legal system. So lets dig into some of the basic options available:

Starting off with two important points worth understanding: First, Not all estate plans look the same. Each plan should be uniquely fitted to the specific person. While some plans focus on simplicity, others may be designed for helping a family with a special need or designed for tax-savings. Plans may be created to accomplish a vast number of goals. The take away is that there are not one-size-fits-all. Plans should be drafted by qualified attorneys who understand a client’s needs and are able to help the client reach their goal. Second, Don’t be duped by the term “estate planning.” You don’t need to be extremely wealthy or have multiple parcels of property to benefit from estate planning. Most everyone should have a few basic documents such as:

• Wills. A Last Will and Testament specifies how a person’s property will be managed and divided upon death. Importantly, it also allows the testator to appoint an executor (the person who is legally in charge of the estate). The Will can also indicate whether a person wants an unsupervised (or “Independent”) court administration, which generally means less involvement by the court and lower fees;

• Durable Power of Attorney. A power of attorney permits the senior citizen to nominate a trusted person to make financial or property decisions for them (which is often done if the senior later becomes incapacitated). These functions might include duties such as management of bank accounts, stocks and bonds, tax matters or safe-deposit boxes.

• Medical Powers of Attorney. A medical power of attorney allows someone to appoint an agent to make medical decisions if the need arises. Consider a situation where a senior citizen has dementia or another condition that gets progressively worse. Eventually, the person will likely be incapable of  making their own medical decisions and will need an agent acting legally to do make decisions on their behalf.

• Additional Helpful Documents or Planning Initiatives. In addition to those listed above, other helpful advance planning can include:
  • Guardianship documents
  • Making banking accounts payable on death to a senior’s chosen beneficiaries;
  • Legal directives that express the senior’s preferences regarding life-sustaining medical treatment if they are in a terminal or irreversible medical condition.
  • Using real property deeds that transfer property automatically upon the death of the testator;
  • Trusts that are likely to allow a senior to qualify for government programs that help pay for nursing home care;

When done properly, most plans are not expensive or cumbersome. Whether you are a senior citizen who feels that you need to protect yourself or the adult child of a senior who may become responsible for your parent’s future care, we can help you. Our firm regularly designs estate plans for people from all walks of life and with varying needs and goals.