Oklahoma City Elder Law Attorneys
Estate planning is important at all stages of life. However, it becomes even more crucial as you or loved ones age. Whether due to physical decline or cognitive, most people need assistance managing their affairs in their later years. There often comes a time where documents like a Durable Power of Attorney and Advance Directive for Health Care become not just helpful, but necessary.
If you (or a parent or grandparent) do not already have a power of attorney for both financial and health care decisions—many documents only grant powers over financial affairs—consider the consequences of not having one. It is a common misconception that a spouse or child will automatically have the power to do things for you if you can’t. That is not the case. If the time comes where you cannot handle your affairs and you do not have a Durable Power of Attorney giving someone the ability to so, a court-supervised guardianship will need to be initiated to provide for your care. A Durable Power of Attorney can save you the cost and stress of that process.
Similarly, if you don’t have an Advance Directive for Health Care, create one to tell your family members and healthcare providers whether or not you want to remain on artificial life support if you are in a terminal condition or are permanently unconscious. While you may have shared your preferences with family or friends, they will not necessarily have the authority to carry out your wishes unless you properly name a Health Care Proxy in an Advance Directive for Health Care.
Creating or updating your other estate planning documents is also vital. Even if you have a Living Trust, a Last Will and Testament, or a Durable Power of Attorney or Advance Directive for Health Care, when was the last time you reviewed them? Representatives may have died or moved to a new state or may have a medical condition that would prevent them from serving. Beneficiaries can also change. Children or grandchildren may have been born. Marriages, divorces, or simply the aging of beneficiaries from children or adults may change the way you want to see your estate distributed upon your death. If you do not formally amend your estate planning documents to address those changes, the way your affairs are managed or the way your estate is distributed might not truly reflect your wishes.
Additionally, while you may have created a Living Trust so your family can avoid the time and expense of probate, make sure the trust is properly funded. A trust is only effective to avoid probate and control the disposition of your assets if you retitle those assets into the name of the trust or designate the trust as a pay-on-death (POD) or transfer-on-death (TOD) beneficiary. If your trust is not fully funded, your family may still have to go to court after your death.
If you think you may require nursing home care in the future, a Living Trust or other ordinary estate planning documents will not avoid the need to spend down your assets before you can qualify for Medicaid. You may want to consider an irrevocable Special Needs Trust that, with enough foresight, can protect your estate from a Medicaid “spend down” and leave more for your family after you are gone.
To help you better understand elder law and estate planning for Oklahoma seniors, download our FREE Estate Planning Guide with 70+ pages of information.
To talk with a qualified, experienced lawyer about your estate planning needs, contact the Oklahoma City elder law attorneys at Postic & Bates today to schedule your free consultation.