Supporting parents as they get older can be challenging. It’s important to plan ahead by not only clarifying how they would like certain aspects of their life to be handled but also by establishing a legal strategy that aligns with those wishes. Healthcare directives, powers of attorney, and other estate planning tools can help ensure that when key life moments arise, you and your loved ones know exactly what happens next.
Planning for Healthcare Decisions
If you were injured or disabled in a serious accident and could not make medical decisions on your own behalf, who would you want making them for you? An estate planning attorney can help you put legal protections in place that answer this question and provide a structure you have agreed to in advance. The same process can greatly benefit parents as they grow older and face a greater risk of injury or illness.
Through a medical power of attorney, you can be named as the person your parents want making the tough medical calls on their behalf, rather than a stranger. This may include consenting to certain treatments or authorizing pain relief and palliative care.
When it comes to some of the most difficult healthcare decisions, especially those related to end-of-life care, a living will can also be helpful. Do you know if your parents would rather pass away peacefully at home, even if it means refusing certain kinds of care? What about how long they would want to be kept on a ventilator or dialysis machine? A living will can outline the answers to these questions.
Both powers of attorney and living wills are considered “advance directives.” These are powerful tools for simplifying medical decision making. Their purpose is to clarify what should happen if someone is seriously injured or ill, in a coma, receiving end-of-life care, or in the late stages of dementia. In short, advance directives provide necessary context for medical caregivers, a plan of action for the person who created them, and peace of mind for adult children who may otherwise be left unsure of what to do.
Managing and Protecting Assets
In some situations, it may be necessary to have some level of control over your parents’ assets as they get older. Many families opt for a simple solution like a joint bank account, but this can create unintended problems. For example, it may affect your parents’ eligibility for Medicaid and can also expose them to your personal debts or shared liability. A better option is to use structures specifically designed to protect aging or disabled family members, which an estate planning attorney can help you set up.
Your parents’ assets, including property, bank accounts, and other holdings, can be placed into legal structures such as revocable or irrevocable trusts. These trusts can give you authority to manage the assets, while also offering other benefits depending on how they are structured. For example, they can help your parents qualify for Medicaid or reduce tax liability when the time comes for you to inherit.
Another tool to consider is a financial power of attorney. Just like a medical power of attorney, this document gives you legal authority to act on your parents’ behalf, but for financial matters. While some parents may be hesitant to grant this authority at first, it can protect them from financial exploitation or senior scams. It can also help ensure that bills are paid, caregiver expenses are managed, and other financial details are handled properly.
By working with an estate planning lawyer, you and your parents can review all of their assets, including real estate, life insurance, retirement accounts, annuities, HSAs, CDs, intellectual property, and more, to make sure every part of what they have built over a lifetime is protected.
Clarifying Your Parents’ Wishes
A last will and testament is one of the most well known estate planning tools, but even if your parents already have one in place, it’s important to ensure it remains updated. One of the most common estate planning mistakes is assuming that it’s “one-and-done.” The birth of new grandchildren, the loss of relatives or friends, and other significant life events all need to be accounted for.
While a will is not the same as a power of attorney or any of the other legal protections mentioned above, which are all designed to protect your parents during their lifetime, it can still help your parents rest assured that everything they leave behind will be handled according to their wishes.
Planning is Tough, But It Can Be Easier With the Right Legal Support
There are many considerations when it comes to protecting parents as they age. An estate planning attorney is often helpful as a neutral and professional presence who can help safeguard their wishes as well as ensure that serious contingencies are accounted for in advance. Having conversations about healthcare, powers of attorney, and asset protection strategies isn’t always easy, but having them early can give everyone peace of mind.
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