Having “The Talk” With Your Family
By Katherine Douglas-Johnson
Did you know that less than half of Americans have an estate plan in place? If you or a loved one should become ill or pass away without some key documents in place, it could lead to added emotional strain and stress during a difficult time, and it could have financial implications for the entire family. Talking about estate planning is probably not a discussion everyone looks forward to, but you need to have the talk. The following tips can help guide you through the conversation.
Talk About General Durable Power of Attorney for Finances
If you should be unable to take care of paying your bills or access your bank accounts, who would you trust to take over your finances? Having an agent appointed through a General Durable Power of Attorney will allow that person to take care of things for you. Without this document, if you should become incapacitated, your loved ones would not be able to step in and take care of things without becoming your legal guardian.
Discuss Healthcare Powers of Attorney
A Healthcare Power of Attorney is NOT the same as a medical/advance directive. This important document empowers your agent to fight for your healthcare wishes with all the power and authority you would typically have over yourself, if you had capacity.
Address the Topic of Wills or Trusts
Determine whether there are existing wills or trusts in place and whether the documents are up to date. If they were created more than five years ago, they should be reviewed to ensure they still reflect your wishes, and for potential legal issues. Discuss where these important documents are kept. A very important note, wills do NOT avoid probate in the state of Missouri.
Nursing Home
You may be afraid of losing your home if you or your loved one must enter a nursing home. While this fear is well-founded, transferring the home to your children or other family members is not always the best way to protect it. Transferring your house to your children (or someone else) may make you ineligible for Nursing Home assistance through Medicaid for a period of time. Additionally, when you give property to a child during your lifetime, they may have to pay capital gains taxes, which could be avoided by inheriting the property upon your death.
There are special circumstances and methods an Elder Law Attorney can utilize to transfer a home without penalty, thus “saving” it from the Nursing Home.
After You Have “The Talk”
If you or your loved ones don’t have adequate and up to date estate planning documents in place, you should consult an experienced Elder Law Attorney to help you and your family get the peace of mind you deserve.