3 Essential Estate Planning Papers Your Parents Should Have Immediately
Today, we're tackling an essential subject: estate planning for your parents. As they advance through their golden years with grace, safeguarding their sense of security—and consequently, yours—becomes paramount. Regardless of how they've raised you, whether in a manner you admire or otherwise, one of the most significant actions you can undertake for a prosperous future for yourself, your children, grandchildren, and subsequent generations, is to diligently care for those who brought you into this world or nurtured you.
The critical inquiries to commence with are: What measures will you take if they fall sick or sustain an injury? Who will manage their financial obligations and ensure their healthcare needs are addressed? In scenarios where they're unable to tend to themselves, what are their preferences for care?
The foundation for addressing these concerns is to initiate open dialogues, and this is where a trio of pivotal estate planning instruments come into play, namely: a General Power of Attorney, a Healthcare Power of Attorney (inclusive of a Living Will), and a HIPAA Waiver.
Let's delve into the significance of these instruments as the backbone of thorough estate planning for your parents, and discuss how you can broach the subject to aid them in either establishing or updating these documents, regardless of their financial situation.
1. General Power of Attorney (POA)
A General Power of Attorney (POA) designates a chosen individual (usually a relative or a close friend) the power to oversee your financial tasks should you become incapable of doing so. This includes everything from paying bills to making choices about investments, ensuring that your financial responsibilities are met during periods of temporary sickness or prolonged incapacity, such as memory-related issues.
If your parents possess assets that may need to be accessed swiftly if they become incapacitated, relying solely on a POA for account access might not be adequate. Gaining access to bank accounts with a POA can be challenging and might necessitate legal action. Therefore, the optimal solution might be to have their assets placed in a trust's name. By appointing yourself or another trusted person as the successor Trustee, you can manage your parents' financial affairs directly, bypassing any need for court intervention, whenever necessary.
2. Power of Attorney for Healthcare and Living Will
Your parents might already depend on you for healthcare advice, or perhaps they keep their health matters private. Regardless of where they fall on this continuum, contemplating their healthcare management in the face of serious illness can be daunting—and it becomes even more so during a medical emergency.
Fortunately, a Healthcare Power of Attorney and a Living Will offer a way for your parents to articulate their healthcare preferences clearly. These documents serve as a guide for medical personnel and family members regarding their desired treatments and life-preserving actions during challenging times.
A Healthcare Power of Attorney appoints a trusted person to make healthcare decisions for your parents when they can't make those decisions themselves. This appointed advocate ensures that the medical care chosen reflects your parents' beliefs and choices.
On the other hand, a Living Will, or a Declaration to Physicians, spells out your parents' instructions for life-sustaining treatment should they become unable to express their wishes. Whether it concerns CPR, artificial feeding, or other forms of life support, this document eliminates guesswork, providing assurance to both your parents and their family that healthcare decisions align with their preferences.
3. HIPAA Waiver
In today’s digital world, the importance of privacy cannot be overstated — yet, what if this privacy impedes critical healthcare communications? This is where the HIPAA Waiver becomes invaluable, effectively removing barriers to crucial conversations when they're most needed.
The Health Insurance Portability and Accountability Act (HIPAA) plays a vital role in protecting individuals' medical record privacy. Although essential for maintaining the confidentiality of health information, this protection can sometimes obstruct effective communication between healthcare providers and family members, particularly for those who are elderly or incapacitated.
A HIPAA Waiver allows your parents to designate certain people who can access their health information and communicate directly with healthcare professionals on their behalf. This facilitates uninterrupted communication and ensures that decisions are made with a full understanding of their health situation. It's not only critical during emergencies but also beneficial for everyday situations where your parents might require assistance in communicating with their doctors or comprehending medical advice.
Initiating the Conversation About Estate Planning With Your Parents
A strategic approach to discussing estate planning with your parents is to first address your own estate planning needs. After you've sorted out your plan, inform your parents that during the process, your attorney inquired if you were designated as an agent under someone else's power of attorney, named as a successor Trustee in their Trust, or if you would be assuming responsibility for their care as they age.
Furthermore, if your lawyer hasn't prompted you with these questions, it's time to give us a call. We can review both your estate plan and your parents' arrangements to ensure everything is properly prepared. These matters can become complicated swiftly, making it crucial to have this conversation with your parents now.
What's the Rush?
You may wonder, "What's the hurry? Why can't this wait?" The reality is that life's uncertainties don't operate on our timelines, and delaying these decisions can be a high-stakes risk. Postponing the establishment of these essential planning tools until an emergency arises can trigger legal battles and emotional turmoil, potentially leaving your parents' preferences unheeded and their affairs in turmoil.
Taking steps now towards comprehensive planning is more than just ticking boxes; it's an investment in the serenity and security of both your parents and yourself.
Rather than waiting for a crisis to prompt action, take initiative now. Book a 15-minute consultation today to discover how our Planning Session process can cater to your family's needs, providing tailored advice and support at every stage.
https://bit.ly/20westlegalmeetingscheduler
This article is a service of 20WestLegal LLC. 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 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 in Sudbury, Massachusetts today to schedule an Estate Planning Session and mention this article to find out how to get this $750 session at no charge.
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.