Protecting a Legacy: 3 Estate Planning Forms Every Aging Parent Should Prioritize
Many of my friends’ parents are entering their golden years, and this stage of life gives us, as adult children, a lot to think about.
Our parents have shaped us according to their ideals or inspired us to pave our own paths. Now, the time is coming for us to care for them. Looking after aging parents is a responsibility that impacts our future, our children, our grandchildren, and beyond.
Here are a few questions you may have thought about:
How would I help my aging parents if they are ill or injured?
Who will manage their finances and health needs?
If they couldn’t make their own medical decisions, do I know what they would want?
How do they feel about life support and medical interventions?
Are there ways to shelter their assets when financing long-term care?
Enter the essential trio of estate planning instruments: the General Power of Attorney, the Power of Attorney for Healthcare (including a Living Will), and the HIPAA Waiver.
These tools are indispensable in safeguarding your parents’ wishes and meeting their needs during critical moments. I want all my clients, colleagues, and friends to truly understand how important these documents are, regardless of their financial circumstances.
It’s about empowering our parents and securing their future with dignity and care — just as this generation has done for so many of us.
1. General Power of Attorney (POA)
A General Power of Attorney (POA) designates a trusted individual — often a family member or close friend — with the authority to manage financial affairs if a person cannot do so on their own. Whether facing a temporary illness or long-term challenges like memory loss, the General POA ensures continuity in managing bills, making investment decisions, and handling other financial matters.
Relying solely on a POA for access to assets during incapacity, especially when dealing with bank accounts, may not suffice. Accessing accounts can pose challenges and require legal intervention, even with a POA. In such cases, a proactive approach involves titling assets under a trust and appointing a trusted person as the successor’s trustee.
2. Power of Attorney for Healthcare and Living Will
Supporting your parents through their healthcare journey can vary enormously — from being closely involved in their medical decisions to having little to no insight into their health details or care philosophies at all. No matter where you and your parents fall on this spectrum, trying to navigate healthcare needs during a medical crisis is the furthest thing from an ideal scenario.
The good news is that two legal documents — a Power of Attorney for Healthcare and a Living Will — can empower your parents to articulate their medical preferences and share them with family members before a crisis.
If your parents cannot make their own healthcare decisions, the Power of Attorney for Healthcare appoints a trusted representative to make those choices. This advocate ensures that healthcare choices uphold your parents’ values and beliefs.
Along similar lines, a Living Will (also known as a Declaration to Physicians) can clarify your parents’ preferences regarding life-sustaining treatments should they become unable to communicate. This legal document provides reassurance and clarity, from CPR preferences to decisions about artificial hydration. It also ensures all involved respect and understands your parent’s wishes, and no one is put in a near-impossible position of trying to guess what your parents may have wanted.
Preparing these documents while everyone can still make and define their preferences will provide profound peace of mind, knowing that healthcare decisions are clearly outlined and will be honored.
3. HIPAA Waiver
HIPAA, the Health Insurance Portability and Accountability Act, is a federal law protecting the privacy and security of medical information. Healthcare providers and organizations must handle personal health data responsibly and safeguard patient confidentiality.
Most everyone can agree that safeguarding privacy is more important than ever. But sometimes, privacy protections create obstacles between healthcare providers and family members, particularly for seniors or those incapacitated by illness or injury.
The HIPAA Waiver is a practical solution to navigate privacy concerns while ensuring seamless healthcare coordination and support for your loved ones.
By signing a HIPAA Waiver, your parents agree to allow specific people access to their medical information and communicate directly with their healthcare providers. This authorization ensures uninterrupted communication, facilitating informed decision-making during medical emergencies. Suppose your parents have trouble hearing their doctor or want your help understanding medical advice. In that case, the HIPAA Waiver allows access to such confidential information, as you are now a legal part of their support system.
Opening Conversations with Your Parents
Bringing up estate planning with aging parents is crucial. Of course, you want to honor their wishes and help get their affairs in order. Approach the conversation with openness, empathy, and respect, emphasizing the importance of planning to protect their legacy and ease family burdens during difficult times.
Focus on their peace of mind and the security such planning will provide the entire family. Try to explore topics like long-term care and their general healthcare philosophies. Please contact me if I can help you open conversations with your parents. I’ve assisted countless families through this process, and I assure you, there’s nothing we can’t handle together.
The Time is Now
Life’s uncertainties make procrastination a risky move, especially regarding estate planning. Please don’t wait for a crisis that jeopardizes your parents’ wishes and financial stability.
Taking proactive steps now isn’t just about completing a task — it’s about ensuring your parents’ peace of mind and securing your family’s future.
PS — The three documents we’ve covered above are not only for aging parents. They are critical legal documents that every adult should have in place. For some of my own friends, this means considering these same documents for their high school seniors or graduates just turning 18 — a legal adult in the eyes of the law.
I Can Help.
I am on a mission to offer guidance and expertise so families can secure their futures for generations. Schedule an appointment with me, and let’s design a plan to protect the people you love most.
