As your parents age, the concern grows that their mental faculties will become impaired, and they’ll no longer have the ability to manage their own individual or financial affairs. Conditions like Alzheimer’s and other kinds of dementia prevail and end up being most likely with age, as does the risk of stroke and other disabling health concerns.
And, once an individual becomes mentally incapacitated, the requirement for a court-appointed guardian ends up being likely. Guardianship marks a substantial loss of control over an individual’s life, not to discuss an intrusion by the court system and a loss of privacy. So, what can you do to assist your moms and dad avoid guardianship?
First, encourage your moms and dads to put a Financial Power of Attorney in location. This is a document your parents can use to designate someone they trust (called an “attorney-in-fact”) to take control of their monetary affairs for them ought to they become mentally incapacitated. The attorney-in-fact can be offered the authority to pay bills, handle checking account and investments, handle property transactions, and basically step into your parents’ shoes for financial functions.
You can likewise motivate your moms and dads to make Advance Healthcare Directives. An Advance Health Care Directive is a document that permits your moms and dads to communicate their desires as to what types of end-of-life medical treatment they do and do not want to receive. They can likewise select a healthcare agent to make medical choices for them if they’re unable to make those decisions for themselves.
Finally, your parents may want to put a Revocable Living Rely on place, naming an Impairment Trustee to take over and handle the trust assets if your moms and dads become psychologically incapacitated.
The secret to preventing guardianship is to encourage your moms and dads to take these recommended actions while they are clear-headed and familiar with their actions. When an individual is suffering from a mental impairment, it’s far too late to engage in incapacity planning.
It’s also important that, while you encourage your moms and dads to take these important steps, it’s your parents– and not you – who ultimately decide to put their plan in location.