Estate Planning: Answering Common Questions of Senior Citizens

Although creating or updating your estate planning may seem like a daunting task, a proper estate plan can help address the concerns you may face as a senior citizen. We are here to help you.

Who can help me if I am unable to manage my own affairs?  As you get older, it is more likely that you may need assistance in handling your financial and medical affairs. A financial power of attorney allows you to choose a trusted person to handle your financial matters (sign checks, pay bills, file taxes, etc.). A medical power of attorney allows you to appoint a trusted person as your decision maker to communicate or make healthcare decisions on your behalf if you cannot do so. Without either power of attorney, a court will need to appoint someone if you need someone to handle financial and medical matters on your behalf.

Can someone help me if I am out of town? Whether you are visiting loved ones in another state or crossing countries off your bucket list, the world does not stop just because you leave home for a period of time. A financial power of attorney can allow your agent to handle financial matters on your behalf while you are out of town. Although it may seem scary to allow another person to manage your financial affairs, take comfort in the fact that you can still act on your own behalf if you are able, and if your agent makes a decision you do not like, you can remove them as your agent. This means that you can go out of town and feel assured that your agent can handle your financial affairs, if necessary, while you are gone.

How do I protect my loved ones after I am gone? A trust is a great tool to hold the money and property you want to give to your loved ones. A trust allows you to set aside a portion of your accounts and property for the benefit of a loved one. You can name someone to oversee the money and property and instruct that person on when and how the money and property must be used. When establishing a trust, there are a few different options for how your loved one can receive the money and property:

  • Outright distribution. The terms of the trust can instruct the trustee to distribute all of the money and property to your loved one at any time, without any strings attached.
  • At certain ages. You can dictate in the terms of your trust that a certain percentage be distributed to your loved one at different ages.
  • After reaching certain milestones. If there are certain things you want your loved one to attain before receiving access to the money and property, you can instruct the trustee to distribute a certain percentage or amount once that milestone has been reached.
  • Leave it up to the trustee. If you are concerned about what your loved one may do with the money or if your loved one has a high-risk job, creditor issues, an unhealthy marriage, or an addiction, allowing distributions to be made only at the trustee’s discretion is a good way to try to protect the money and property that you have set aside for your loved one. Provisions can be put in place so your loved one can receive enjoyment from the money and property, while protecting it from creditors and predators.

We want you to enjoy your golden years to the fullest. 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.

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When it comes to planning for your future and your family, Sommers Law Group is here to help.

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