In the first part of this series, we touched on how some professional adult guardians have misused their authority to abuse the seniors placed under their care. Now, let’s shift focus to how seniors can proactively use estate planning to avoid the dangers of court-ordered guardianship and potential abuse.
As our senior population grows, we’re hearing more and more about cases of elder abuse by professional guardians. One of the most shocking stories was exposed by The New Yorker—it involved a corrupt guardianship agency in Las Vegas that swindled over 150 seniors out of their life savings. [Insert link to article here]
What’s particularly heartbreaking about these cases is that many seniors who fall prey to these unscrupulous guardians actually have caring family members who want to protect them. But without the proper legal documents in place, even the most loving families can be left powerless.
So, how can you make sure this doesn’t happen to your loved one? Through proactive estate planning.
Keep Your Family Out of Court and Conflict
If you become incapacitated without a plan, your family may end up in court, going through a stressful and expensive guardianship process. This can lead to family conflict, and if your loved ones don’t agree on who should act as your guardian, the court might appoint a professional guardian instead. As we’ve seen, that decision can sometimes open the door to abuse.
Planning for Incapacity
You can easily avoid the risk of court-ordered guardianship by putting an incapacity plan in place now. This plan would give the people you trust the legal authority to make important medical, financial, and legal decisions for you if you can’t do so yourself. The best part? There’s no need for court intervention when these tools are properly set up.
Now, while there are many different ways to grant this decision-making authority, it’s important to note that a will won’t cut it. A will only goes into effect after death and does nothing to protect you or your loved ones if you become incapacitated.
Your incapacity plan should include a variety of legal tools, such as:
Healthcare Directive
A healthcare directive (HCD) allows you to choose someone you trust to make medical decisions on your behalf if you can’t. It also outlines your preferences for medical care during incapacity, such as whether or not you’d like to be kept on life support. This ensures your medical wishes are respected when you’re unable to speak for yourself.
Durable Financial Power of Attorney
A durable financial power of attorney gives someone you trust the authority to manage your financial and legal affairs if you can’t do it yourself. This person can pay bills, handle taxes, and make financial decisions in your best interest.
Revocable Living Trust
By placing your assets in a revocable living trust, you can name a trustee to manage your assets during your incapacity. This trust can include instructions for your care and specify when you’re considered incapacitated, ensuring that your wishes are followed without needing court approval.
Family/Friends Meeting
Perhaps the most critical step is ensuring that everyone involved in your care understands your plan. This is why, as part of our process, we arrange a family meeting where we explain your plan to those who will be impacted. It’s important for your loved ones to understand why you made certain decisions and how they can best support you.
By spreading out responsibilities among trusted individuals and ensuring that everyone is on the same page, you reduce the risk of any potential abuse. Plus, having multiple people involved in your care provides an extra layer of protection.
Don’t Wait to Put Your Plan in Place
It’s crucial to remember that these documents must be created while you are still capable of making sound decisions. Even a slight decline in your cognitive ability could prevent your plan from being legally valid.
Unexpected illness or injury can happen at any age, so don’t wait. Contact us today to put your incapacity plan in place. And if you already have a plan, we’re happy to review it to ensure everything is still current and aligned with your wishes.
Retain Control Even If You Lose Control
While you can’t predict the future, you can certainly take steps to maintain control over how your life and assets are handled if you become incapacitated. Through thoughtful estate planning, you can protect yourself from the risks of court-ordered guardianship, family conflict, and elder abuse.
Schedule a Family Wealth Planning Session with us today, and we’ll help you create the proper legal protections to ensure your wishes are followed. If you’ve already started the process, we can review your plan to make sure everything is in order and up to date. Call us today at (470) 458-7878.
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