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Retire Early
Lifestyle
Retirement; like your parents, but way cooler
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In 1991 Billy and Akaisha Kaderli retired at the age
of 38. Now, into their 4th decade of this
financially independent lifestyle, they invite you
to take advantage of their wisdom and experience. |
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Navigating
Elder Law: A Guide to Protecting Aging Loved Ones
There’s a reason why old age is often referred to as “the golden years.” As they
age, many of our loved ones are met with a period of tenderness, leisure, and
wisdom as they reflect on the remaining decades of life. But in order to
maximize the time that they have left, it’s also important to plan accordingly
so that their transition to old age is as comfortable and enjoyable as possible.
Elder law is a specialized area of legal practice that addresses the challenges
that many people face as they age. Understanding the basics of elder law is
important for both family members and caretakers who wish to protect elders from
exploitation and ensure that their medical needs are taken care of until the
very end.
Planning for Long-Term Care
Long-term care planning is often the highest priority for most family members of
aging adults. It typically includes looking at options for nursing homes,
assisted living centers, or in-home care. Unfortunately, this type of planning
can be challenging. It may be difficult to anticipate your loved one’s future
care needs (especially if they’re currently in good health) while also staying
within their budget.
Many family members make the mistake of assuming that Medicaid will cover
long-term care planning, but the reality is that Medicaid has strict eligibility
requirements. If your loved one has certain medical needs or their assets are
slightly over the required financial limits, they can easily be disqualified.
One of the more common strategies for addressing this is by spending down their
assets as they age or by establishing a trust in order to meet the financial
limitations of Medicaid.
Managing Finances and Medical Decisions
Apart from establishing a long-term care plan, it’s also important to have legal
measures in place to ensure your loved one’s medical and financial decisions are
respected in the event that they’re unable to make these decisions on their own.
This is often done through a variety of documents, such as financial and medical
powers of attorney, healthcare proxies, and advance directives, which designate
a family member to make these decisions on their behalf.
Once these documents are enacted, family members have the legal ability to pay
medical bills, manage bank accounts, and carry out their loved one's wishes
according to their plan. However, in most cases, you’ll need to establish these
documents when your loved one is still in good health and of sound mind for them
to be legally sound.
Protecting Against Elder Exploitation
Unfortunately, because the estate and long-term care planning process can be
complicated for the average person, it can be easy to overlook potential issues
that might arise later on. Many individuals are sadly much more vulnerable to
financial exploitation and abuse as they age, and they can easily be taken
advantage of by both strangers, caretakers, or even other family members.
In
order to make sure that your loved one's assets are protected as they age, it’s
always a good idea to work with an elder law attorney to ensure that all
financial and long-term care documents are legally sound before they are
enacted. An elder law attorney will be in possession of these documents and can
periodically review them or update them on behalf of the family as time goes on.
As the individual ages, an attorney can also employ financial monitoring
techniques to watch out for financial abuse and look for warning signs that may
indicate they’re being exploited, and take action when needed.
Passing Down Assets Smoothly
As
we age, it can be hard to face the fact that we’ll be leaving loved ones behind
when we inevitably pass on. But it can also be comforting to know that we can
leave behind valuable assets and keepsakes to help our family members cope with
their loss. Unfortunately, doing this can be more challenging than you might
think.
Many people are familiar with wills and their role in designating heirs and
beneficiaries. But establishing a will is rarely enough to ensure your assets go
to the right people. Wills can be challenged through probate, and they often
come with tax requirements that your beneficiaries will need to consider once
they inherit. Beyond a will, there are many other estate planning methods that
can be used to protect your wishes and effectively pass on your assets to the
right people. This may include establishing a trust, transfer-on-death accounts,
or giving gifts while you’re still alive.
Stepping in When a Loved One Can No Longer Make Decisions
Life can move tragically fast, and sometimes, we fail to make the right
provisions while our loved ones are still of good health and sound mind. When
this happens, long-term care and estate planning can become much more
complicated. When an older family member's health starts to fail, many of the
provisions listed above (such as establishing a trust or a POA) are unable to be
drafted because the person is unable to make these decisions on their own.
While they’re often more challenging, there are legal processes that families
can explore with the help of an elder law attorney to help make sure their loved
one’s wishes are respected and that they can live out the rest of their years
with dignity. In most cases, this involves establishing a conservator who can
make medical and financial decisions on behalf of their family member.
From Planning Comes Peace of Mind
While there are plenty of approaches you and your family can explore to ensure
your loved one’s medical and financial decisions are respected in the final
years of their life, it’s essential that you choose the right protections for
your family member’s unique needs. It’s also important that these options are
finalized quickly and effectively to avoid any potential legal pitfalls when
these protections are most crucial.
For
this reason, an elder law attorney is a valuable resource throughout the
planning stages as well as when these protections are enacted. They can help
advise you and your loved one on the many legal provisions available and help
monitor and protect them as time goes on.
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About the Authors
Retire
Early Lifestyle appeals to a different
kind of person – the person who prizes their
independence, values their time, and who doesn’t
want to mindlessly follow the crowd.
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