Estate Planning: Common Senior Questions
Since 2019, the percentage of people aged 55 and older has fallen from 60 to 44 percent. Does creating or updating your estate planning seem daunting? If so, this blog addresses common questions senior citizens ask about estate planning. Who will help me manage my own affairs if I become unable to do so? Does creating or updating your estate planning seem daunting? If so, this blog addresses common questions senior citizens ask about estate planning.
The U.S. Census Bureau reports that 69 percent of survey respondents age 85 or older faces at least one type of disability. As you age, the likelihood you may require financial assistance increases.
What happens if I can no longer manage my own affairs?
Senior Questions about Power of Attorney (POA)
A Financial POA names a trusted person (an agent or attorney-in-fact) to handle financial matters. Duties include signing checks, paying bills, filing taxes, etc.). Without a Financial POA, a court appoints someone to handle financial matters on your behalf. This takes time and money. Neither scenario is ideal in the midst of a crisis.
Medical POA Senior Questions
A Medical POA appoints a trusted person to communicate or make healthcare decisions on behalf of someone who is no longer able to do so. Without a Medical POA, the court names someone to make these decisions . This could cost your loved ones time and money and could infringe on your privacy.
Who helps me if I am out of town?
A recent New York Times article explored the trend of individuals over age 65 traveling after the advent of the COVID-19 vaccine. Whether you leave town to visit loved ones in another state or cross countries off of your “bucket list,” you could be traveling. However, the world does not stop if you leave home.
The Benefit of Financial POA
A financial power of attorney allows your agent to handle financial matters on your behalf. Do you feel uncomfortable asking someone else to manage your financial affairs? If so, rest assured you can still act on your own behalf if able. And if your agent makes a decision contrary to your wishes, you can replace the agent. This means that you can leave town feeling assured that your agent will manage things while you are away.
How do I protect loved ones after I am gone?
Unfortunately, life is finite. At some point in time, you will die. Although you will leave your family, your influence can directly impact your loved one’s financial future. A trust holds the money and property you want to give to loved ones. Whether through a Revocable Living Trust (RLT) or a part of your Last Will and Testament, you can set aside a portion of your accounts and property for a loved one. Also, you can name someone to oversee the money and property. You will leave instruction about how and when your heir uses the money and property. When establishing a trust, consider various options for you can give the money and property:
Option Answers to Senior Questions
- Outright Distribution
The terms of the trust instruct the trustee. The trustee distributes the money and property to loved ones or gives loved ones the right to withdraw the assets at any time. This scenario comes without strings attached. - At Certain Ages
You can dictate that trustees distribute a certain percentage to loved one at different ages. For example, they could give one-third at age 40, one-half at 45, and the remainder at 50. - Based on Milestones
Do you want your heirs to accomplish certain things before the trustee grants them access to money and property? If so, you can instruct the trustee to distribute a certain percentage once the milestone is met. For instance, milestones include attaining a college degree or serving in the military. - Trustee Discretion
Do you worry your loved one may waste the money? Or that creditor issues could erase your legacy? Another worry could be that an unhealthy marriage or addiction could undermine wise spending. In these cases, you could allow the trustee to distribute assets at their discretion. Thus, provisions can go to your heirs, free from creditors and predators.
Senior Questions about Life
We want you to enjoy your golden years! One way to make sure that you live a full and happy life is to address your concerns with a proper estate plan. To learn more about the ways in which we can help you and your loved ones, contact us at your earliest convenience.
About Skvarna Law in Glendora & Upland, California
Skvarna Law Firm operates offices in Glendora and Upland, California. Also, we provide legal services. We cover San Bernardino, Los Angeles, Orange, and Riverside Counties. This includes several cities. Upland, Ontario, Rancho Cucamonga, Fontana, Colton, Rialto, Chino, Chino Hills, Glendora, Claremont, Pomona, La Verne, Montclair, San Dimas, Azusa, Covina, West Covina, Diamond Bar, Walnut, La Puente, Corona, Norco & Mira Loma.
