For many adults, the main concern during estate planning is ensuring the support of their loved ones. They make arrangements to distribute their assets to specific beneficiaries and may name people to care for their dependents.
For others, estate planning is about protection and comfort during their golden years. Estate planning can help people ensure they qualify for key benefits or protect their assets from recovery efforts that could leave them financially insolvent later in life.
Proper planning can also reduce the likelihood of an involuntary guardianship.
One document can limit guardianship risk
The courts generally only establish an adult guardianship in cases where there is clear documentation that an individual has medical issues that prevent them from acting in their own best interests. Many people who are healthy and independent throughout their adult lives are vulnerable to guardianship due to decline as they age.
The basic estate planning documents many people draft do not necessarily address this specific situation. Instead, a specific document is necessary to prevent an involuntary adult guardianship. Durable powers of attorney allow people to designate a trusted person to act as their attorney in fact or agent.
While other documents may lose their legal authority when the person who drafted them becomes permanently incapacitated, durable powers of attorney remain in effect until a person recovers from their condition or dies. People can take control of their circumstances by choosing who provides them with support in an emergency situation instead of depending on whoever pursues that authority when the time comes.
Reviewing existing estate planning documents can help people find gaps in their legal protection and update their documents as necessary. Proper planning can help people age with dignity and can reduce the risk of the wrong people assuming financial or medical control.