SKIP TO CONTENT
Avoid These Common Elder Planning Mistakes
Elder planning is an essential component of the aging process. It is also one of the most important things you will ever do, as the decisions you make now can affect your medical care, financial standing, and quality of life years in the future. However, elder planning is a complex and multi-faceted ordeal, and there are plenty of opportunities for missteps. You can avoid some of those missteps by working with a Springfield elder lawyer.
Procrastinating
You might think that elder planning is only for old people or, at least, those in late middle age. But nothing could be further from the truth. That’s because elder planning is about more than simply planning for future illness or long-term care. It’s also about establishing instructions for your medical care and financial affairs in the event that you become incapacitated — which could happen to anyone at any moment. Suffering a severe injury or illness without a power of attorney in place means that your healthcare and financial decisions may be made by someone you don’t know or trust.
Failing to Update Your Plan
Elder planning is not a “one-and-done” undertaking. As the classic movie quote goes, “Life moves pretty fast.” You could get married. You could have children. You could receive a major inheritance. A person who you made provisions for in your plans could die or fall out of your favor. You should review your elder plan periodically and make updates as needed. Failing to do so means that the plans you made in the past may no longer reflect your wishes.
Only Using a Will
Wills are one of the most common tools for elder planning, and for good reason. They are powerful estate planning instruments that allow their creators to accomplish a wide range of goals. However, they are not without their drawbacks, the most notable of which is that they must go through the costly and potentially convoluted process of probate administration. Most individuals would be better served by creating a more comprehensive elder plan that also includes trusts, which accomplish many of the same goals as wills while avoiding the probate process.
Neglecting Your Beneficiary Designations
If you have a retirement account, life insurance policy, or pay-on-death account, you likely have named someone to be the beneficiary of those assets. When updating your elder plan, make sure to revisit your beneficiary designations to ensure that they continue to reflect your wishes.
Appointing the Wrong Fiduciaries
Fiduciaries are people who are authorized by law to make decisions or take action on behalf of another person, including executors (for wills), trustees (for trusts), and attorneys in fact (for power of attorney). They must act in good faith, avoid self-dealing, and put the other person’s interests above their own. As such, choosing the wrong fiduciary for your will, trust, or power of attorney can have disastrous consequences. When choosing a fiduciary, ensure that the person (or persons) you choose is trustworthy, ethical, and competent.
Avoid These Common Mistakes by Working With a Springfield Elder Lawyer
For more information about getting started on creating an elder plan, please contact a Springfield elder lawyer at LifeGen Law Group by calling 417-823-9898 or using our online contact form.