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Guarding Your Wealth for Seniors
Beyond the Living Will: Seniors Have More to
Consider
There are other important documents seniors need in
place
By Jeffrey D. Voudrie, CFP
President, Legacy Planning Group
Oct. 3, 2005 - Living wills have received a great
deal of attention due to the Terry Schiavo situation. Because her
end-of-life wishes were in dispute, family members battled each other in
the courts over her treatment and care. By having a proper Living Will,
you can avoid such confusion. But a Living Will doesn’t ensure you have
all your bases covered. There are other equally important documents you
must have in place.
A Living Will deals with end-of-life issues. But
what if you’re incapacitated—unable to make your own medical decisions--
for a short time? Who makes medical decisions for you then? What if
you’re widowed, divorced or unmarried and you don’t have a spouse who
can legally make medical decisions when you can’t?
A health care power of attorney allows you to state
whom you choose to make medical decisions on your behalf should you not
be able to make them yourself. You can also list alternates, should your
first choice be unable or unwilling to serve.
A health care power of attorney is especially
important for those who have lost a spouse and have several living
children. Often if Mom or Dad become seriously ill, it’s the out-of-town
child that pushes to do everything they can to extend their parent’s
life. The last time they saw Mom, she was busy fixing Thanksgiving
dinner. Now that she’s in a coma, they have trouble grasping the concept
that Mom will never be the same again. And if Mom doesn’t wish to be
hooked up to machines for weeks on end, her out-of-town child might not
understand.
You can just imagine the kind of arguments that can
arise when children don’t agree on the proper care of their parent. You
can eliminate that situation by designating one child to be your
attorney-in-fact. Clearly state in writing through your Living Will and
your health care power of attorney, what your specific wishes are.
Communicate those to your children, especially your chosen
representative. Then if the time comes, you’ve greatly eliminated any
possible confusion and ambiguity.
A health care power of attorney is activated by
your incompetence. Incompetence is often determined based on the opinion
of two doctors. With the new HIPPA regulations, this can be a problem.
For instance, your doctors may not be willing to offer that opinion
citing HIPPA restrictions (HIPPAA does not restrict release of
information in those situations). So make sure your health care power of
attorney includes language authorizing the release of that information.
With all the focus on health care and medical
issues, many people forget the practical financial issues that can arise
when someone is incapacitated. I’ve seen first hand situations where one
spouse develops dementia but still has assets in his or her name. The
other spouse is helpless to manage those assets or use them to help
cover their loved ones’ care. In these cases, the courts have to
determine guardianship, which is not only expensive, but emotionally
draining for the family.
All this can be avoided with a Durable Power of
Attorney for assets. In this document, you choose a representative to
make financial decisions on your behalf. You determine when you would
like their authority to begin. This makes it much easier to pay your
bills, file your taxes, manage your retirement accounts, etc. And again
you can list alternates in case something keeps your first choice from
serving.
If you have minor children, there’s one more
document you really must have. The Appointment of Guardian states your
choice for who will raise your children in the event of your death. The
court still has to make guardianship official, but this document will
clearly express your wishes. This document can help your kids avoid
being caught in a legal tug-of-war.
As the Terry Schiavo case shows us, these documents
aren’t just for the elderly. Having them in place will not only make it
easier on your loved ones should the unfortunate happen to you, but they
will also help ensure that you are properly cared for according to your
wishes.
Got questions? Feel free to ask me at
www.guardingyourwealth.com. I’m in the enviable position of not having
to garner new clients and I’d be glad to give you my unbiased opinion.
Visit our web site to read previously submitted questions and answers.
In addition to being a nationally syndicated
columnist and Certified Financial Planning Practitioner, Mr. Voudrie
serves clients nationwide using a proprietary money management system
he's personally developed.
Have a financial question? Send me an email and
I’ll personally respond, free of charge. Go to
www.guardingyourwealth.com and click on ‘Ask Jeff’.
About Guarding Your Wealth:
“Guarding Your Wealth” is a
nationally syndicated weekly personal finance column written by Jeffrey
D. Voudrie, CFP. Mr. Voudrie is the President of Legacy Planning Group,
a private wealth management firm that employs sophisticated proprietary
strategies designed to protect and grow its clients' investments. Please
visit his website,
www.guardingyourwealth.com to read past articles under the Guarding
Your Wealth Article Archive.
In addition to being a nationally
syndicated columnist and Certified Financial Planning Practitioner, Mr.
Voudrie provides personal, private money management services to clients
nationwide.
Looking for an energetic expert who
is passionate about financial and wealth management? Mr. Voudrie is an
excellent speaker who will excite and inspire your audience. Mr. Voudrie
is available for a limited number of speaking engagements, television
appearances and radio talk shows. For booking information, email e-mail
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