Estate planning attorneys have noticed an interesting trend emerging in the United States.
There was a 14% increase in the numbers of people who are at least 60 years of age who are living with someone as a domestic partner according to a 2008-2010 United States Census Bureau survey as compared to 2005-2007 numbers.
In most cases the underlying reason that so many seniors are choosing to live together is that marriage can have negative financial implications.
Retirement pensions are one of the concerns. Many pension plans allow for the surviving spouse of the individual receiving the pension to continue to receive survivor's benefits after the death of his or her spouse.
Given the limited income that is provided by Social Security this survivor's pension can be the difference between relative poverty and a comfortable lifestyle.
In many instances the rules governing the survivor's pension state that it will no longer be paid if the recipient was to get remarried. Because this income can be so important to many individuals they simply don't get legally married.
There are other financial reasons why seniors choose to remain unmarried, not the least of which are the preferred tax benefits of a single person. If you make the choice to remain single, but live with your new partner, you must be certain that you have executed all of the appropriate estate planning documents.
The law will not recognize your significant other if you were to become disabled, need medical decisions to be made for you, or pass away without recording your wishes in a legally binding manner. However, with a visit to a good estate planning lawyer you can make sure that you and your partner are provided for come what may.
With a proper estate plan you can not only provide for your domestic partner, but you can also include an incapacity provision empowering your partner to act as your representative and handle your affairs if you were to become unable to make sound decisions at some point in time. You can also allow them access to you if you are hospitalized and name them to make medical decisions for you in your advance directives, should you choose to do so.
Incapacity planning is important when you are serious about preparing yourself for all the eventualities of aging. It can seem as though it is unlikely that you will ever become unable to make sound decisions on your own, but the statistics tell a different tale.
According to the Alzheimer's Association one out of every eight individuals who has achieved senior citizen status will suffer from the disease. The possibility continues to rise as you get older with upwards of 40% of people who are 85 years of age being Alzheimer's sufferers.
People who suffer from Alzheimer's disease often find it impossible to make sound decisions due to Alzheimer's induced dementia. Of course, there are other causes of incapacity so this is something to take seriously.
Incapacity planning typically involves executing documents called durable powers of attorney. You must select an agent which is referred to as your attorney-in-fact to make decisions on your behalf should you become unable to do so.
You may find that the person that you would like to see making your financial decisions differs from the individual who would be the health care decision-maker. Because this is the case you will find that there are two types of powers of attorney - the financial or property power of attorney and the health care power of attorney, which is also called an advance directive.
Hopefully, we will all lively happily and in good health until the end of our lives. The reality, however, is that some of us will lose our ability to think clearly as we age. Who would take care of your finances if that should happen to you? More specifically, do you want to decide who will control your money if this should happen to you?
When an individual shows signs that he or she is no longer capable of managing his or her financial affairs, a petition for an involuntary conservatorship or guardianship petition is often filed with the Court by a concerned relative. If granted, this means that the petitioner will control your assets. Of course you have the right to oppose the petition; however, a frightening statistic shows that as many as 94 percent of all involuntary petitions for conservatorship are granted despite any objections by the subject of the petition. At that point, you would have little choice in the matter but you do now.
There is not much that you can do to prevent your incapacity, but you can decide who will control your estate if you became incapacitated. Estate planning options such as a durable powers of attorney, a living trust, and a will can all afford you the opportunity to decide now what will happen to you if you become incapacitated. Most importantly, they provide you with the ability to name someone you trust to take control of your assets in the event of your incapacity, taking away the possibility that a court will make that determination down the road.
Have you considered who would manage your financial afffairs if you became incapacitated? Married couples are sometimes under the impression that their spouse will automatically be given access to all the assets. This may not be the case. Assets that are titled jointly may be easily accessed but that is not always the case. Take for instance real property that is jointly titled. If the well spouse desired to refinance, obtain a secured loan or sell real property that is jointly owned a legal representative would have to be appointed to sign in behalf of the incapacitated spouse. A power of attorney may not adequately authorize an agent to handle these transactions. Then there is the issue of a retirement account or pension benefits solely in the name of an incapacitated spouse. In these cases, the well spouse, child or parent woul likely need to seek a court’s permission to access your assets taking a significant amount of time and money.
Often, when someone becomes incapacitated, assets that are needed by loved ones to maintain the household or pay bills are inaccessible when most needed. Even worse, a dispute can arise as to who should manage the assets which can prolong the process of obtaining a court order.
There are, however, a variety of estate planning tools that can be used to avoid the need for court intervention. Executing a comprehensive durable power of attorney or creating a revocable trust may also be viable options. With just a small amount of pre-planning on your part you can avoid a lengthy and costly court process in the event of your incapacity.
Trying to cover all of your bases for when the latter portion of your life rolls around means you have to consider factors beyond simply arranging for the transfer of assets after you pass away. Reaching an advanced age is certainly a milestone, but other detrimental possibilities loom with age, and it is important to be prepared for them.
A lot of people don't realize just how long lifespans are these days. Americans are living longer than ever, with people 85 years and older making the fastest-growing segment of the population. Clearly, when you reach your mid-80s and beyond the possibility that you won't be able to make all of your own medical decisions becomes a real one indeed.
For this reason it is important to select a trusted representative to act on your behalf through the execution of a durable power of attorney for health care along with a living will. With a living will you state your wishes with regard to the use of medical procedures to keep you alive should you become unable to communicate your preferences in real time. The issue of having your life preserved via the use of artificial means when there's no hope of recovery is typically at the core of these documents.
When you look at the facts it is rather startling to see how few Americans have executed these documents. An interactive Harris survey from 2009 found that only 29% of the adults that they polled had a living will in place. Though we emphasize how important these documents are for seniors, they are are also important for younger adults. If you're looking for proof simply recall the highly publicized case of Terri Schiavo, and the protracted legal battle between her husband, who was also her legal guardian, and her parents.
If you are unprepared you could be leaving your family in a very uncomfortable position should life-and-death decisions fall into their laps. You may want to take action and arrange for a consultation with an experienced estate planning attorney sooner rather than later to execute these important documents.
There are people who think that things will take care of themselves as the years pass, but the reality is that each of us must take responsibility for our own futures. There is more to planning for the latter stages of your life than simply anticipating your Social Security check and drawing up a last will.
You will eventually have to fund your retirement years if you do in fact expect to retire, and Social Security, even if it still exists in its present form by the time you retire, is probably not going to be enough. So if you want to be truly prepared you must anticipate your expenses and devise a plan that enables you to meet them comfortably.
There's also the possibility of incapacity. Approximately four out of every ten people who reach the age of 85 are suffering from Alzheimer's disease according to the Alzheimer's Association. Alzheimer's causes dementia, which can make it impossible for its victims to render sound financial, personal, and medical decisions. If you were to become incapacitated without making any advance plans, the court could appoint a guardian of its choosing to act in your behalf and you would become a ward of the state. This is a possibility that can be circumvented through the execution of the appropriate durable powers of attorney.
Of course there is also the matter of your legacy. Do you have specific things in mind that you would like to be able to do for your family members as your final act of giving? Do you perhaps have the desire to give something back to your favorite charitable organizations? If you do, these intentions will have an impact on your budgeting for the period of time that precedes your passing.
Because of all the different matters that must be addressed, it is a wise idea to tap into the expertise of an experienced estate planning attorney who has a thorough understanding of retirement and estate planning. He or she will advise you appropriately so that you can be sure that all of your bases are covered as you enter the latter portion of your life.
The prospect of passing away is something that really doesn't cross the minds of people very often until they reach an advanced age. As a result, many individuals do not think that they need an estate plan until they reach their retirement years. It is true that the typical American lives into his or her late 70s, and in fact more and more people are living into their mid-80s and beyond. However, just because the majority of people live to see their senior years does not mean that everyone does. If you were to pass away before your time without having an estate plan in place you would probably be putting your family members in a very difficult position.
One thing to remember is the fact that the modern estate plan includes an incapacity component. If you were to become incapacitated and unable to communicate your decisions in real time with regard to things like being kept alive via the use of artificial life support systems if you were in a terminal condition, your next of kin would be faced with this decision.
This is clearly something that could be emotionally excruciating without knowing what you would do if you were capable of making your own choices. Family members could also disagree about the correct course of action, making an already devastating situation that much worse. If you simply take the time to create an estate plan that includes the appropriate advance health care directives you leave nothing to chance and record your wishes in a legally binding fashion.
People of all ages are victimized by accidents that render them incapacitated, and the fact is that younger people are more frequently involved in accidents than those who are older. Estate planning is not only about transferring assets, and it is not only for senior citizens. If you are a self-supporting adult in your own right you really should have an estate plan in place that includes advance health care directives for your own sake and for that of your loved ones.
Those who have begun to take the process of estate planning seriously will invariably find themselves considering the period of time that will precede the actual trigger event. When you engage the services of an estate planning attorney to handle the legalities surrounding the transfer of your assets after you pass away you may want to consider creating a comprehensive plan that also addresses some of the eventualities that you may face toward the end of your life. As unpleasant as it may be for some people to consider, incapacity is one of these contingencies and if you ignore it you do so at your peril.
To evaluate just how likely it is that you may suffer a period of incapacity when you enter your twilight years you need only look at the statistics. According to studies compiled by the Alzheimer's Association, as many as one out of every eight Americans who reach the age of 65 suffer from dementia, most often Alzheimer's Disease. But as you get older, the likelihood of contracting Alzheimer's increases. Some studies indicate that 40% of those who have reached the age of 85, have Alzheimer's disease. Alzheimer's eventually brings dementia along with it, and dementia can inhibit your ability to make sound financial and health care decisions.
This is why it is a good idea to have the appropriate durable powers of attorney in place as a part of your retirement/estate plan. The "durable" power allows the instrument to remain in place should the grantor become incapacitated. Most people will execute both a durable financial power of attorney and a durable medical power of attorney and may name two different attorneys-in-fact, or agents, whose experience or expertise is appropriate for each respective area.
If you don't have the appropriate powers of attorney in place and you were to become incapacitated, interested parties may have to petition the court to appoint a guardian to act in your behalf and you would become a ward of a person you may not have preferred or even a ward of the state. Providing for this in advance will allow a person to choose their own representatives in advance. This is a vital matter that ought to be part of your planning when you are preparing for the latter stages of your life.
People are routinely living into their late eighties and nineties these days. Life is a gift and we all welcome each new day but there are certain perils looming when for those who reach an advanced age. Dementia is one of those risks and it is in fact alarmingly widespread. Statistics tell us that approximately 50% of people eighty-five years of age and older are suffering from some form of dementia. Though the severity of these cases can vary widely, those who suffer the effects of dementia generally are unable to make their own medical and financial decisions in a sound manner.
For this reason it is a good idea to include durable powers of attorney in your estate plan. You can execute a durable medical power of attorney and appoint someone that you trust to make health care decisions in your behalf. In addition, you can appoint an attorney-in-fact to handle your financial matters via the execution of a durable financial power of attorney.
Though you may well enjoy mental clarity throughout your final years, it is a good idea to be prepared for any eventuality. If you do need others to make decisions in your behalf at some point in time it is comforting to know that they will be people that you have personally selected rather than a guardian appointed by the court.
An integral part of your estate plan is creating documents that express your end of life decisions concerning healthcare. You never know exactly how the latter stages of your life will be spent so it is important to make sure that you are prepared for whatever fate may throw your way.
As medical science makes continual advances patients' lives can be extended through artificial means for long periods of time. The implications of this can be controversial. Some have strong opinions on the subject, which could be drastically different than your own opinions. To make sure that your personal preferences are honored in cases when you are unable to express yourself you can include advance health care directives in your estate plan. Two that are widely utilized are the living will and the durable medical power of attorney. In the living will you state your specific preferences. In the medical power of attorney you authorize your agent to make health care decisions in your behalf in the event you are incapacitated.
There are provisions contained in the Healthcare Insurance Portability and Accountability Act that make it illegal for health care professionals to divulge any personal patient information without the patient's express consent. It is not recommended that you wait until you are admitted in a facility to sign an authorization because you may be unconscious or incapacitated. For this reason your estate plan should also contain an authorization that complies with the requirements of HIPAA. If you have had your directives created over the last several years they may already contain a universal HIPAA authorization. But if your estate plan was drafted prior to 2004 or if it does not include any of the documents discussed it would be a good idea to schedule an appointment with a competent estate planning attorney to review your directives.
Setting up a plan for possible disability is a vital part of estate planning. As you set forth your disability wishes, you will have the opportunity to determine how your medical and financial needs will be looked after if you become mentally incapacitated. There are many benefits to creating a separate financial and medical power of attorney.
By keeping your powers of attorney apart, you can choose different agents for each purpose. For example if your spouse is best with your finances but would have an emotionally hard time making medical choices for you, you can name your son as your health care agent instead. Even if you name the same agent for each purpose, you can name different backup agents in the event that your first choice becomes unavailable.
A medical power of attorney allows your health care agent to make medical choices for you and speak with your doctors. He or she can have as much power as you desire, within the guidelines provided by state law, which allows you to limit any choices you don't want your agent to make. You can also place limits upon your financial agent. This person may handle all or some of your financial and physical assets.
There is another major difference between the two. Your medical power of attorney will most likely not be used while you are healthy and able to make your own medical decisions. It is, however, quite common to use a financial power of attorney in everyday life. Such a power of attorney may allow one spouse to easily sign for another if that other spouse is unavailable for any reason.
If you choose to name separate agents for medical and financial purposes, using separate documents will help you to keep your medical and financial wishes private. Only the agent for each purpose will have access to your information. This is best if you intend to use a financial power of attorney during life, but don’t wish to share your medical wishes while you are healthy.
If you live in Reno, NV and are interested in creating a Power of Attorney, consult with the experts at Anderson, Dorn & Rader. Call (775) 823-9455 or fill out the form below.
A Power of Attorney (POA) is a document that allows you to give authority to someone you trust to act on your behalf. This document is frequently seen in real estate dealings and brokerage accounts, but they also play a big part in your estate plan.
If you were to become disabled, you’d want to have someone who could speak on your behalf with regard to medical treatments and someone who could take over your financial affairs. A Healthcare POA can handle the medical issues and a Property POA can see to it that your finances are in order.
A Power of Attorney only works for you if it's “durable." A durable POA means that these documents are not automatically revoked in the event you become mentally disabled.
To make a POA durable, you have to properly state that intention in the document itself. The statutes in Nevada recommend the language that should go into the document.
To learn more about a Powers of Attorney or you need help setting one up, get in touch with the experts at Anderson, Dorn & Rader.
