Must-Have Estate Planning Docs for Your Parents
3 Estate Planning Documents Your Parents Need Right Now
Today, we're diving into a topic that is absolutely crucial: estate planning for your parents. And, what are the must-have estate planning docs for your parents. As they gracefully navigate their golden years, ensuring their peace of mind (and yours!) becomes a top priority. Whether they raised you the way you want, or showed you how you want to do it differently, as your parents' age, one of the very best things you can do for your own best future, and that of your entire future lineage - your children, grandchildren, and beyond - is to take great care of the people you were born to or raised by.
The Starting Place
The questions you need to start asking now are:
How will you help them if they become ill or injured?
Who will take care of their bills and make sure their health needs are met?
How do they want to be cared for, if and when they cannot care for themselves?
The starting place is open conversation and a power trio of estate planning tools swoop in to save the day: the General Power of Attorney, the Power of Attorney for Healthcare (including a Living Will), and the HIPAA Waiver.
Now, let's break down why these tools are the unsung heroes of comprehensive estate planning for your parents, and how to bring them up so you can support your parents to get them created or updated, no matter how much or how little money they have in the bank.
1. General Power of Attorney (POA)
A General Power of Attorney (or POA) grants a person you name (often a family member or trusted friend) the authority to manage your financial affairs if you become unable to do so yourself. From handling bills to making investment decisions, the General POA ensures that your financial matters are handled. It covers both temporary illnesses and long-term incapacity, like memory issues.
If you need quick access to your parents' assets during their incapacity, relying solely on a POA might not be enough. Getting access to bank accounts with just a POA can be challenging and may need court intervention. To avoid this, consider titling their assets in a trust with you or a trusted individual as the named successor Trustee. This allows seamless management of their financial matters without court involvement.
2. Power of Attorney for Healthcare and Living Will
It’s possible your parents already lean on you for guidance with their healthcare decisions. And, it’s equally possible they don’t share details of their healthcare with you at all. No matter which side of the spectrum your parents stand on, wondering what will happen to their healthcare needs if they become seriously ill can feel overwhelming. And, trust me, it’s even more overwhelming during moments of medical crisis.
A Power of Attorney for Healthcare and Living Will empower your parents to outline their medical preferences. These documents guide medical providers and family on treatment preferences, even in challenging times.
Thankfully, a Power of Attorney for Healthcare and Living Will allow your parents to explain their medical wishes . These documents guide medical providers and family members on your parent’s treatment and life-saving measures preferences.
Health Care Power of Attorney
The Power of Attorney for Healthcare designates someone to make these medical decisions on behalf of your parents if they're unable to do so. This trusted individual becomes their advocate. This person ensures that healthcare choices align with your parents' values and preferences.
Living Will
Meanwhile, the Living Will outlines your parents' wishes regarding life-sustaining treatments in the event they're unable to communicate. From CPR to artificial hydration, this document provides clarity amidst uncertainty. This documents gives both your parents and their loved ones peace of mind that the decisions being made around their care and what they themselves would want.
3. HIPAA Waiver
In the digital age, privacy is paramount. But ,what happens when privacy becomes a barrier to essential healthcare-related communication? Enter the HIPAA Waiver, the ultimate tool for opening communication roadblocks in times of need.
HIPAA (the Health Insurance Portability and Accountability Act) protects the privacy of individuals' medical records. HIPAA is crucial for safeguarding sensitive medical information. However, it can sometimes hinder the flow of communication between healthcare providers and family members. This is especially true for the elderly and those incapacitated by an illness or injury.
By signing a HIPAA Waiver, your parents authorize specific individuals to access their medical information and speak directly to their medical providers. This facilitates seamless communication and informed decision-making. This is essential in medical emergencies. But, is also extremely helpful if your parents need help hearing their doctor or understanding their medical advice.
How to Bring Up Estate Planning With Your Parents
The best way to bring up estate planning with your parents is to get your own planning handled first. Then, let your parents know that in the process of handling your own planning, your lawyer raised the question of whether you were an agent under anyone else’s power of attorney, or named as a successor Trustee in your parents' Trust, or if you are going to be caring for aging parents at some point.
And, if you have worked with a lawyer and they didn’t ask you those questions, give us a call and let’s review your plan and your parents’ planning to make sure that everything you’ll need is dialed in. This can all get quite messy very quickly, and now is the time to talk with your parents.
Why the Urgency?
You might be thinking, "Why the rush? Can't we tackle this later?" Here's the scoop: Life is unpredictable. Procrastination can be a costly gamble. Waiting until a crisis strikes to get these tools in place can lead to a whirlwind of legal and emotional chaos. It can also result in leaving your parents' wishes unfulfilled and their affairs in disarray.
By proactively planning ahead, you're not just checking items off a to-do list. You are investing in your parents' peace of mind and yours.
Contact Us
Don't wait for a storm to hit. Schedule a 15-minute call today to learn how our unique Life & Legacy Planning process is designed with your family's well-being in mind, offering personalized guidance and support every step of the way.
This article is a service of Kristen N. Mackintosh, The Happy Lawyer, at Mackintosh Law, PLLC, a Personal Family Lawyer® Firm. We don’t just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love. That's why we offer a Life & Legacy Planning Session™, during which you will get more financially organized than you’ve ever been before and make all the best choices for the people you love. You can begin by calling our office today to schedule a Life & Legacy Planning Session™.
The content is sourced from Personal Family Lawyer® for use by Personal Family Lawyer® firms, a source believed to be providing accurate information. This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal, or investment advice. If you are seeking legal advice specific to your needs, such advice services must be obtained on your own separate from this educational material.
