Five Estate Planning New Year's Resolutions

By Terry Douglas, Maryland Elder Law Attorney

Douglas Law Office

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Five Estate Planning New Year's Resolutions

Now that the holidays are over, it's time to make our New Year's Resolutions. We plan to walk more, eat healthier, or get a power of attorney. For some, it seems difficult to get started. So, another year goes by.

Oftentimes when dad dies, the family argues about who will care for mom because she is ill and can't afford at home care. Many older adults suffer throughout the day and night worrying and hoping for answers. Isn't it time to get your legal affairs in order?

Promise Yourself To Act On 1 Item Now

Resolution #1 Get the basic documents in place

(A) Maryland “Advance Health Care Directive” – Allows you to designate a person to be in charge and to spell out your instructions, including which medical care, treatment, and procedures you want, and authorizes your physician to communicate with your family if you become incapacitated. Can you imagine how frustrated your children will be when the doctor refuses to update them about your medical condition because of privacy concerns?

(B) “Power of Attorney” – Authorizes a person you trust to make legal and financial decisions for you when you are unable to do so; such as paying bills, making bank deposits, managing the property, or dealing with government benefit agencies. If something happens to you, does your family know what to do?

Resolution #2 Plan now to fund nursing home care.

The average cost of a nursing home is $7,900 per month ($94,800 year). Most people don't realize their limited options until they are in a crisis-usually when a loved one is being discharged from a hospital to rehab. If you are fairly healthy, inquire about “long term care insurance” or a rider.

Resolution #3 If you are still driving or own a home, ask your insurance agent about the benefits of an “umbrella insurance” policy to protect your home and life savings from lawsuits.

Resolution #4 Obtain a copy of your “Beneficiary Designation” Forms. This includes your 401(K), life insurance, bank accounts, retirement and investment account forms. Then, review and update as necessary.

Resolution #5 For a military veteran of WWII, Korea, or Vietnam (or a surviving spouse), locate a copy of the military discharge papers (DD214). You may be eligible for up to $2,085 a month in extra income from the VA to help pay for long term care expenses. It is tax free and does not affect your social security.

Death, Disability, or Illness aren't easy to talk about with our family, friends, or doctors. Start the conversation with your family and physician. Then, watch the PBS broadcast Consider the Conversation A Documentary on a Taboo Subject.

Planning your estate is one of the most critical things you will accomplish during your lifetime.

Take action while you are still competent. Meeting with an attorney can reduce the emotional burden and family fighting during a crisis and give you peace of mind.

Planning is more than a New Year's Resolution. Planning is a solution.