NEW YEAR ’ S
CHECKLIST
Throughout history , the New Year has always been representative of a new beginning . Every January 1st presents us all with the opportunity to take an inventory of last year ’ s resolutions and recommit ourselves to a new set of goals . Due to the ongoing Covid-19 pandemic , many will add “ getting affairs in order ” to their list of aspirations for 2022 . Many people think only of a Will when contemplating the legal documents necessary to protect their future . However , there are more documents and considerations in developing a well-rounded estate plan . Every estate plan ought to include the following documents :
2 Durable Power of Attorney 2 Medical Power of Attorney 2 Directive to Physicians and Family or Surrogates ( Living Will ) 2 Authorization to Release Medical Information ( HIPAA Authorization ) 2 Declaration of Guardian 2 Will 2 Long-term Care Insurance
Although often overlooked , a Durable Power of Attorney and a Medical Power of Attorney are critical parts of long-term care planning , since they designate the person or persons who will be acting for you in the event you are unable to handle your own financial and health care decisions . Without these documents , no one , not even your spouse , is legally authorized to handle your finances or make medical decisions for you .
Your estate planning documents are extremely powerful and should be executed after great contemplation . The people you appoint to act on your behalf as your agents should be those you trust fully to handle your affairs now , as well as when you cannot handle them on your own . If you do not trust the person you have named to act for you right now , be careful about naming that person to act for you when you are incapacitated . Often people appoint spouses , adult children , or other family members as agents to keep affairs private and to avoid hurting feelings . However , appointing a family member may not always be the best option . In all cases , signing estate planning documents should be done only after deep reflection as to the abilities and trustworthiness of each candidate .
In addition to the essential legal documents listed above , another planning area that warrants early and informed consideration is preparing for the cost of funding long-term care . Long-term care differs from other types of healthcare , in that the goal of long-term care is not to cure an illness , but to provide an individual with support so they can maintain an optimal level of functioning . Some people want to stay in their homes as long as possible and bring in outside help to make that possible . Others want the freedom from home maintenance that a senior residence community offers . There is a wide range of living arrangements for seniors , from retirement communities to assisted living facilities to skilled nursing facilities . There exists a long-standing myth that Medicare will cover all our healthcare needs , including the cost of long-term care . The reality is that Medicare provides support only in limited situations . Notably , Medicare does not pay for assisted living , memory care , or long-term custodial care in skilled nursing facilities .
Some people are fortunate to have the ability to private pay for long-term care , which ranges from $ 3,000 –$ 16,000 / month in the Dallas-Fort Worth area . Others have long-term care insurance ( an insurance policy designed to cover long-term healthcare expenses that are not covered by health insurance or Medicare ). However , long-term care insurance may not be available if you have certain existing health problems , and the costs and premiums can rise as you age . Therefore , it is important to investigate the availability of long-term care insurance as early as possible . If you cannot qualify for long-term care insurance , there are financial options that may fit your circumstances and provide similar coverage . Professionals who work primarily with seniors , such as Elder Law attorneys , can often provide connections to a community of support agencies and other professionals who may be of assistance to you as you explore your options .
This year , resolve to take the time to craft a thoughtful , and thorough , estate plan . Educate yourself on your options , and seek qualified professional advice on legal documents , healthcare , insurance , and financial planning . A little planning now goes a long way towards ensuring that you and your loved ones are protected , no matter what the future holds . Lori Leu , Erin Peirce , Lauren Olson , and Emily Seale are Elder Law attorneys with Leu & Peirce , PLLC located in Plano , Texas . They can be reached at 972-996-2540 .
COLLIN COUNTY • 21