The Three Biggest Senior Estate Planning Blunders

It might be shocking to learn, but the truth is that there are a variety of dangers lurking in most estate plans. Some potential issues are relatively benign, while others are extremely costly and time consuming to fix – if they can be fixed at all. Unfortunately, the three most harmful problems are surprisingly common.
One flaw elder law attorney’s see in seniors’ estate planning is having the wrong type of financial power of attorney. That is, most think that their financial power of attorney will allow their agents to do whatever they need them to do, if they become incapacitated. Regrettably, this is usually not the case when seniors are in need of long-term care. The reason for this, is that a financial power of attorney focused on estate planning rather than on elder law, rarely includes powers that allow an agent to divest the senior of his or her assets in favor of asset protection planning, so that the senior can avail themselves of Medi-Cal and/or Veteran’s Pension Benefits. This one misstep alone has resulted in impoverishment for countless seniors who ended up needing long term care.
The second most damaging mistake happens when seniors are not vigilant in updating their estate plan. To illustrate, probate avoidance trusts – which make sense for younger people – typically do nothing to protect an elder’s assets from long term care costs. Also, many couples with old plans, still needlessly have AB-type trusts which result in extra administration, headaches and costs. All of this is to say nothing about changes in family dynamics that warrant altering an estate plan.
But, by far, the biggest blunder that a senior can make when it comes to estate planning is simply ignoring it, in the first place. Addressing questions about asset protection, who gets what of your assets after you are gone as well as who is in control of your financial and/or health care decisions, if you become incapacitated, is essential. The devastating effects caused by a lack of planning (or bad planning) oftentimes leads to bankruptcy, unnecessary and costly court proceedings, higher taxes, disinherited beneficiaries and/or battles between loved ones that forever rip families apart.
To ensure peace of mind for your loved ones, contact Randall F. Kaiden, Esq., at Kaiden Elder Law Group, PC at 661-247-8433, or via our website: www.kaidenelderlaw.com.