What Legal Documents Should Older Adults Have In Place?
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Question:
What are the legal documents essential for any older adult that covers long-term care and end-of-life wishes?
Response:
Everyone should have a will, durable power of attorney, health care directive and revocable trust.
Your will dictates who will receive property upon your death and appoints a personal representative or executor to carry out your wishes and handle everything else involved in administering an estate, including filing a last tax return, paying outstanding debts, and disposing of property.
Your durable power of attorney appoints an agent to act in your place if you every become incapacitated.
While your agent under your durable power of attorney takes care of financial and legal matters, an agent under a health care proxy or durable power of attorney for health care (different states use different terms) can make decisions about your medical care if you are unable to do so yourself.
Your health care proxy or durable power of attorney for health care should be accompanied by a health care directive, written guidance to your agent saying what kind of care you would like. This may be incorporated into the proxy or be a separate document.
Over time, I’ve become a proponent of revocable trusts. These often work better in terms of financial management than durable powers of attorney, largely because some banks and financial institutions are resistant to honoring powers of attorney. They also avoid probate and, if you appoint a co-trustee, they provide some oversight and protection from becoming victim of a scam or other financial abuse.
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