Every senior adult should prepare an estate plan to make sure their wishes will be honored at the time of their death. This plan may be as simple as a last will and testament or durable power of attorney; or it may include complex legal documents such as an irrevocable trust.

An estate plan offers seniors peace of mind. The document guarantees that a friend or family member that they trust will be given the authority and permission to make decisions on their behalf should they become mentally or physically incapacitated. A plan outlines important decisions about business and financial matters and estate distribution and management. Every estate plan should be customized to reflect the circumstances that are unique to the individual who created it. While every plan is different, there are some common elements that experts recommend you include.

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Essential Aspects of an Estate Plan

  1. Start By Creating an Estate Plan: A recent survey revealed that 62% of American adults do not have a will. This means that their respective state laws will determine the distribution of their wealth when they die. The courts may end up allocating assets in a way that does not represent the preferences and wishes of the deceased. Durable powers of attorney and advance health care directives give individuals the right to appoint a trusted representative to handle these matters. Here are some of the most essential documents to include in an estate plan.Wills appoint an executor to gather assets, pay debts and taxes and distribute what is left according to documented instructions.
    Trusts are used to place all assets (or some subset of them) under the control of a trusted friend or relative. These can be put in force before death; and after death the assets are distributed according to the instructions.
    Durable powers of attorney name an agent to handle business and financial matters on behalf of the senior. Powers of attorney are only used while the senior is alive, and do not apply after death.
    Advance health care directives designate another individual to carry out health care and end-of-life decisions through documents such as living wills and powers of attorney.
  2. Be Sure to Update Your Existing Estate Plan: There are many circumstances that may trigger the need to update a will or estate plan. These scenarios may include a birth or death in the family, a divorce, the acquisition of new assets, or changes to the tax laws may necessitate changes to an estate plan. Seniors should periodically evaluate their plan to ensure it continues to represent their situation. During a review, the senior can also decide if their named trustee or executor is still alive and viable.
  3. Don’t Forget to Update Beneficiaries: Whether writing a new estate plan or reviewing your current plan, be sure to check your named beneficiaries in all relevant accounts, such as life insurance policies or retirement and financial accounts. Typically if your named beneficiary on a policy is different than your will, the assets will flow to the beneficiary and supercede the will.
  4. Avoid Making Children Co-Owners: Adding your children as owners or co-owners of real estate and other assets might seem to be a good idea in order to avoid probate, but the risks are significant. The primary problem with making children owners or co-owners is that the asset may be vulnerable to their creditors. Seniors should speak to an estate planning attorney for other recommendation that can accomplish objectives without exposing assets to risk.

A Banyan Residence Can Help

When a senior is outlining their desires for physical, emotional and memory care as they age, assisted living may present an ideal solution. If your loved one is searching for the right way to age with community support and professional care, call A Banyan Residence today.