When to Start Estate Planning

How to Discuss Estate Planning with Your Parents

Today, we’re diving into a topic that is absolutely crucial: when to start estate planning for your parents. As they elegantly navigate their golden years, ensuring their peace of mind and yours too, becomes a top priority. Whether they raised you the way you wanted, or showed you how you want to do things differently, as your parents continue into their sunset years, one of the very best things you can do for yourself and your family,  is to ensure your parents have their affairs in order. And helping them to understand why it’s so vitally important for all concerned.

The questions you need to start asking now are:

• How will you help them if they become ill or injured?
• Who will take care of their bills and make sure their health needs are met?
• How do they want to be cared for, if and when they cannot care for themselves?

When to start estate planning is the first question. A simple starting place is open conversation, and three powerful estate planning tools can help save the day: the General Power of Attorney, the Power of Attorney for Healthcare (including a Living Will), and the HIPAA Waiver.

Now, let’s break down why these tools are the unsung heroes of comprehensive estate planning that you can discuss with your parents, and how to bring them up so you can support your parents to get them created or updated, no matter how much or how little money they have in the bank.

1. General Power of Attorney (POA)

A General Power of Attorney (or POA) grants a person you name (often a family member or trusted friend) the authority to manage your financial affairs if you become unable to do so yourself. From handling bills to making investment decisions, the General POA ensures that your financial matters are handled, whether you’re experiencing a temporary illness or a long-term inability to manage your money, such as in the case of memory problems.

If your parents have assets that you must be able to access easily in the event of their incapacity, you may decide that a POA for accessing their accounts is not sufficient, as it can be difficult to get access to bank accounts even with a POA in place, and will require court action. In that case, the best course of action is to ensure that their assets are titled in the name of a Trust, with you or someone you trust as the named successor Trustee, who can step in and handle financial matters for your parents, without any court involvement, when needed.

2. Power of Attorney for Healthcare and Living Will

It’s possible your parents already lean on you for guidance with their healthcare decisions, and it’s equally possible they don’t share details of their healthcare with you at all. No matter which side of the scale your parents stand on, the question of what will happen to their healthcare needs if they become seriously ill can feel overwhelming, especially during moments of medical crisis.

Thankfully, a Power of Attorney for Healthcare and Living Will allows your parents to explain their medical wishes to guide medical providers and family members on what treatments and life-saving measures they’d like to have, even in the toughest of times.

The Power of Attorney for Healthcare designates someone to make these medical decisions on behalf of your parents if they’re unable to do so. This trusted individual becomes the advocate, ensuring that healthcare choices align with your parents’ values and preferences.

Meanwhile, the Living Will – also known as a Declaration to Physicians – outlines your parents’ wishes regarding life-sustaining treatments in the event they’re unable to communicate. From CPR to artificial hydration, this document provides clarity amidst uncertainty, giving both your parents and their loved one’s peace of mind that the decisions being made around their care and what they themselves would want.

3. HIPAA Waiver

In the digital age, privacy is paramount – but what happens when privacy becomes a barrier to essential healthcare-related communication? Enter the HIPAA Waiver, the ultimate tool for opening communication roadblocks in times of need.

HIPAA (the Health Insurance Portability and Accountability Act) protects the privacy of individuals’ medical records. While this is crucial for safeguarding sensitive medical information, it can sometimes hinder the flow of communication between healthcare providers and family members, especially for the elderly and those incapacitated by an illness or injury.

By signing a HIPAA Waiver, your parents authorize specific individuals to access their medical information and speak directly to their medical providers, ensuring seamless communication and informed decision-making. This is essential in medical emergencies but is also extremely helpful if your parents need help hearing their doctor or understanding their medical advice.

When to Start Estate Planning with Your Parents

The best way to bring up estate planning with your parents is to get your own planning handled first. Then, let your parents know that in the process of handling your own planning, your lawyer raised the question of whether you were an agent under anyone else’s power of attorney, or named as a successor Trustee in your parents’ Trust, or if you are going to be caring for aging parents at some point.

And, if you have worked with a lawyer and they didn’t ask you those questions, give us a call and let’s review your plan and your parents’ planning to make sure that everything you’ll need is adequately addressed. This can all get quite messy very quickly, and there is no better time than now to talk with your parents. This will help you bring up estate planning with your parents.

Why the Time is Now

Life is unpredictable and waiting until a crisis or unforeseen tragedy hits your parents can make everything feel much more unmanageable. We can help you avoid legal and emotional turmoil by creating a plan that puts everyone at ease. Procrastination risks your parents’ wishes and legacy. Planning ahead brings peace of mind for your entire family. We’re here to help—call (480) 525-6244, email us, or visit our website for more information