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Estate Planning Blog Articles

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An Elder Law Attorney Can Help Navigate Social Security Benefits

Social Security is a vital source of income for millions of retirees. However, the system’s complexity often leaves people uncertain about how to maximize their benefits. From determining the best time to claim benefits to understanding taxation and spousal eligibility, making incorrect choices can result in a reduced lifetime income and unexpected financial burdens.

An elder law attorney can help individuals and families navigate Social Security rules, ensuring that retirees receive the benefits they are entitled to, while coordinating them with other financial and estate planning strategies.

Determining Eligibility and Maximizing Benefits

Social Security eligibility is determined by a person’s work history, earnings and age at the time of filing. Individuals can begin claiming benefits as early as age 62. However, doing so results in permanently reduced monthly payments. On the other hand, delaying benefits past full retirement age (typically 66 or 67) results in a higher monthly payout.

An elder law attorney can analyze an individual’s financial situation to determine the optimal time to claim benefits. For married couples, strategies such as spousal benefits and survivor benefits can be used to increase total household income. Understanding how to structure claims for a higher-earning spouse versus a lower-earning spouse can have a significant impact on long-term financial security.

Social Security and Tax Implications

Many retirees are surprised to learn that a portion of their Social Security benefits may be subject to federal income tax, depending on their overall income. Up to 85% of benefits can be taxed if an individual’s combined income exceeds certain thresholds. This includes wages, pensions, withdrawals from retirement accounts and investment income.

An elder law attorney can help develop tax-efficient strategies, such as adjusting withdrawal schedules from 401(k) or IRA accounts to minimize taxable income. Proper planning can ensure that retirees keep more of their Social Security income, while staying in a lower tax bracket.

Social Security Benefits for Spouses, Widows and Divorced Individuals

Social Security rules provide benefits not just for workers but also for their spouses, widows and even former spouses. Spousal benefits enable a lower-earning spouse to receive up to 50% of the higher-earning spouse’s benefit, providing a significant financial advantage.

Widows and widowers can claim survivor benefits, allowing them to receive their deceased spouse’s full benefit if it is higher than their own. Divorced individuals may also qualify for benefits based on an ex-spouse’s earnings, provided they were married for at least 10 years and remain unmarried at the time of filing.

Because these rules can be complicated, an elder law attorney helps individuals determine which benefits they qualify for and how to maximize their payout. Choosing the wrong claiming strategy can result in thousands of dollars in lost benefits throughout retirement.

Appealing Denied Social Security Benefits

Not all Social Security claims are approved on the first attempt. If benefits are denied due to missing paperwork, incomplete applications, or eligibility disputes, an elder law attorney can assist with the appeal process.

The Social Security Administration offers multiple levels of appeal, including reconsideration, administrative hearings and federal court review. Without legal guidance, many applicants struggle to present the necessary medical or financial evidence to reverse a denial. An elder law attorney understands how to structure appeals effectively, ensuring that eligible individuals receive the benefits to which they are entitled.

Coordinating Social Security with Other Retirement Income

For most retirees, Social Security is just one part of a broader financial picture. An elder law attorney helps integrate Social Security benefits with pension distributions, investment income and estate planning strategies to ensure long-term financial stability.

Proper planning can help retirees:

  • Avoid excessive taxes on Social Security income
  • Ensure that benefits continue for a surviving spouse or dependent
  • Structure distributions from retirement accounts in a way that preserves government benefits

By taking a comprehensive approach, an elder law attorney ensures that Social Security benefits work in tandem with other financial assets to provide a secure and sustainable retirement.

Key Takeaways

  • Social Security claiming decisions impact lifetime income: An elder law attorney helps determine the optimal time to file for benefits.
  • Spousal and survivor benefits can provide additional income: Understanding eligibility rules ensures that married, widowed and divorced individuals receive their full entitlement.
  • Taxes can reduce Social Security payouts: Strategic financial planning minimizes tax liabilities on benefits.
  • Legal assistance is critical for appealing denied claims: An attorney can guide individuals through the appeals process to secure rightful benefits.
  • Social Security should be coordinated with other retirement income sources: Proper planning ensures financial stability in retirement.

References: Super Lawyers (May 7, 2024) “How Do You Become Eligible for Social Security Benefits?”, Social Security Administration (December 2024) “Your Right to Representation“ and AARP (January 17, 2023) “7 Things to Know About Social Security and Taxes”

How to Create a Comprehensive Estate Plan in Five Steps

Those who live or work in the heart of high-tech corridors are often future-focused, with innovation at the center of their world. However, planning for the future should include estate planning to ensure that assets are distributed according to your wishes, rather than according to the laws of your state. A recent article from Puget Sound Business Journal, “5 essential steps to craft a comprehensive estate plan,” offers the five key steps that every adult needs to take to create an estate plan.

Create an inventory of assets. Today’s inventory includes tech investments, real estate, cryptocurrency, life insurance, retirement accounts, personal property and the contents of a safe deposit box. This information will help your estate planning attorney know what planning tools will best suit you and your family. A complete inventory will also be required by your executor to settle your estate, regardless of how far off that may seem.

Asset ownership and beneficiaries. Knowing what you own and knowing how you own it are two different things. If you live in a community property state, for instance, each spouse owns half of the property purchased during the marriage. However, if you own property as Joint With Right of Survivorship (JWROS), the property will pass to the surviving spouse without going through the will.

Estate planning includes reviewing beneficiary designations. Life insurance, retirement accounts and investment accounts typically allow you to name beneficiaries who will receive the assets directly upon your death. These designations override any wishes expressed in your will. Be sure they are current and review them periodically to ensure accuracy.

Plan for guardianship of minor children. Your will is used to name a guardian for any minor children. If you don’t have a will and you have young children, the court will decide who will raise the children in the event of both parents dying. If you have young children and no will, you must take care of this as soon as possible.

Power of Attorney for Financial and Healthcare Decisions. Part of estate planning is to protect you while you are living, but not able to speak on your own behalf. An estate plan typically includes a Power of Attorney to name someone to manage your financial affairs and a Healthcare Proxy or Healthcare Power of Attorney to designate a person of your choice to make decisions and participate in your medical care in the event of incapacity. Both documents should be crafted to reflect your personal wishes.

Discuss your estate plan with family and advisors. Death and illness are not as pleasant to discuss as your latest exotic vacation. However, it’s important to let certain family members or trusted friends know about your estate plan. For instance, your executor should be aware of the location of your will and the type of memorial you wish to have. Discussing your wishes can help prevent misunderstandings and even litigation.

Estate planning requires maintenance, just like your home or car. As you go through the different stages of life, your estate plan needs to adapt. Conducting a regular review every three to five years ensures that your estate plan accurately reflects your wishes and provides for the care of your loved ones.

Reference: Puget Sound Business Journal (March 17, 2025) “5 essential steps to craft a comprehensive estate plan”

Can I Include Digital Assets in My Estate Plan?

From a bird’s-eye view, digital assets encompass digitally stored documents, electronic communications, loyalty programs, airline miles, photos, videos, social media accounts, cryptocurrencies, subscriptions, online businesses and accounts provided by service providers (e.g., Facebook, Instagram, GoDaddy).

If this sounds overwhelming, imagine how taking care of this asset category will feel to your executor if you haven’t prepared a full inventory as part of your estate plan. A recent article from The National Law Review, “5 Ways Estate Attorneys Can Bring Order to Their Clients’ Digital Asset Chaos,” outlines the necessary steps to organize your digital affairs.

Clarify your digital asset status. In addition to the items listed in the first paragraph, you may own domain names, digital recordings and content, or conduct business on sites such as Amazon, engage in cryptocurrency, NFT, or gaming token transactions, to name a few. If you spend five minutes on the internet, you also have NIL—name, image and likeness, which is a digital identity.

Your estate planning attorney will ask if you use online bill pay for recurring expenses, how you store photos and videos, how extensively you use social media and if you have created a digital inventory in case someone needs to access this information to manage your estate or pay bills in the event of incapacity.

Make an inventory of digital assets. A thorough inventory of digital assets begins with hardware and ends with apps. This includes any devices where you store or access information, such as desktop and laptop computers, tablets, mobile phones, external hard drives, e-readers, digital cameras, gaming devices, smart home systems and flash drives. Cryptocurrency owners will also have online wallets.

Next, map out where data exists. This likely includes cloud services, such as Google Drive and Dropbox, as well as local hard drives, backup systems and applications.

Online accounts and digital assets encompass a wide range, from email to utilities, cryptocurrencies and NFTs, bank accounts, investment accounts, social media platforms, Venmo, PayPal, subscriptions, transportation apps and any other online activity, accessible on any device.

Creating an inventory might be easier if you scan and print emails for receipts and password reset links to uncover any forgotten accounts. While some people no longer print anything, this might be a good exception to make to help your executor’s tasks easier.

Determine your directives for each account. What makes this process more complicated is the different values ascribed to different digital accounts. A long-unused library application, for instance, doesn’t need to be treated in the same manner as the portal where you store your financial information. However, both require attention. Some accounts may need to be deleted in the interest of privacy, while others, like photos and videos, you may want to share with family members. None of this information should be included in your will, which will become a public document.  It should instead be part of a digital estate plan.

Name a savvy executor who is comfortable in the digital world. Identifying traditional assets can be challenging without an inventory. However, identifying digital assets is even more complex: there is no paper trail. For those with significant assets, it may be wise to empower your executor to retain a technical advisor to help unravel a digital estate.

Make it legally binding. A bare-bones estate plan typically includes a will, a revocable trust and financial and healthcare powers of attorney. An estate plan that includes digital assets should provide clear directions about who will manage these assets. Speak with your estate planning attorney about how to maintain the inventory of assets and manage updating it as assets change at a more rapid pace than traditional assets.

Reference: The National Law Review (March 21, 2025) “5 Ways Estate Attorneys Can Bring Order to Their Clients’ Digital Asset Chaos”

Preparing to Move a Loved One to an Assisted Living Facility

Moving a parent or elderly relative into an assisted living facility is a significant life change. While assisted living provides valuable support, many families face challenges when making this transition. Understanding how to prepare both logistically and emotionally can make the process smoother and ensure that the move is beneficial for everyone involved.

Assessing the Need for Assisted Living

Recognizing when a loved one needs assisted living can be difficult. Some seniors may struggle with daily tasks, such as meal preparation, medication management, or maintaining personal hygiene. Others may experience memory issues or social isolation, making it unsafe or unhealthy for them to continue living alone. While family caregivers often step in to help, the demands of full-time care can become overwhelming.

A professional evaluation from a doctor or geriatric care manager can provide insight into the level of care required. This assessment helps families determine whether assisted living is the best option or if alternative solutions, such as in-home care, may be more suitable.

Choosing the Right Facility

Finding the right assisted living community is critical to ensuring a loved one’s safety, happiness, and quality of life. Factors to consider include the level of medical care provided, the availability of social and recreational activities and the overall environment of the facility. Some communities also cater specifically to individuals with conditions such as Alzheimer’s or mobility issues.

Visiting multiple facilities, asking about staff-to-resident ratios and reviewing inspection reports can help families make an informed choice. If possible, involving the loved one in the selection process ensures that their preferences and comfort are considered.

Preparing for the Move

Once a facility has been chosen, preparing for the transition is crucial. Downsizing can be an emotional process, especially if a loved one is leaving a home they have lived in for many years. Deciding which personal belongings to bring requires striking a balance between practical needs and sentimental value. While space may be limited, familiar items such as photographs, favorite furniture, or cherished keepsakes can help ease the emotional impact of the move.

Handling financial and legal arrangements is another critical step. Reviewing contracts, understanding payment structures, and ensuring that the necessary estate planning documents—such as powers of attorney—are in place can prevent complications down the line. Families should also coordinate with the facility to arrange medical care, prescription transfers and any necessary accommodations.

Addressing Emotional Challenges

The emotional adjustment to assisted living can be just as necessary as the physical move. Many seniors fear losing their independence or worry about feeling lonely in a new environment. Open and honest conversations about why the move is happening can help ease these concerns. Reassuring a loved one that assisted living provides a safer and more supportive lifestyle can alleviate some of their anxiety.

Encouraging participation in community activities and social events can help new residents feel more at home. Regular visits and phone calls from family members also play a vital role in ensuring a smooth transition. If signs of depression or withdrawal appear, working with facility staff or a counselor can help address emotional barriers.

Work with an Elder Law Attorney to Help Make the Transition to Assisted Living

Preparing a loved one for the transition to assisted living can be a challenging process. However, it can lead to a positive outcome. If you’re preparing to move a loved one to assisted living and need guidance on how to best navigate the transition, contact our law firm today to create a plan that respects your loved one’s needs.

Key Takeaways

  • Recognizing the right time for assisted living is crucial: Declining health, safety concerns, or caregiver burnout often signal that a move is necessary.
  • Choosing the best facility requires thorough research: Evaluating medical care, social opportunities and staff quality helps ensure a good fit.
  • Preparing for the move involves emotional and logistical planning: Downsizing, handling financial matters and bringing familiar belongings can help ease the transition.
  • Emotional support is essential for a successful adjustment: Open discussions, family involvement and participation in activities help seniors feel comfortable in their new environment.
  • Legal and financial preparation prevents complications: Reviewing contracts, arranging for medical care and ensuring that estate plans are in order safeguard the transition.

Reference: Elder Law Answers (March 6th, 2025) “Before You Move Your Parents to an Assisted Living Facility”

How Does a No-Contest Clause Protect Your Will?

In a perfect world, you create your will with the guidance of an experienced estate planning attorney, your heirs inherit their legacy and everyone lives happily ever after. In the real world, however, it doesn’t always work out that way. Every year, families scrap over inheritances, says a recent article from Market Watch, “Avoid drama with your will by adding this to your estate plan.”

What can you do? Consult with your estate planning attorney about the possibility of including a no-contest clause in your estate plan. This can deter heirs from challenging your will by creating a no-win situation if they challenge the will in court. When a no-contest clause is included in the will, the beneficiary risks losing their entire inheritance.

The goal is to avoid challenges resulting from an emotional response to grief, which is not unusual, or a long-standing family resentment emerging after the death of a parent. People who are quick to pursue litigation will think twice with a no-contest clause.

Is it possible your heirs might challenge your will? Even if the likelihood is low, it’s worth adding the clause. Estate litigation is lengthy, expensive and emotionally draining. Second marriages, economic disparities among siblings, or estranged offspring provide fertile grounds for will challenges. However, even happy families sometimes find themselves in court battles when large inheritances are at stake.

Another factor: seniors who live longer than expected may have heirs who thought they were receiving a substantial inheritance. When there’s a smaller inheritance, the surprise can lead to litigation. Unfortunately, the cost of estate litigation can significantly reduce the value of an inheritance, making it even smaller.

Warren Buffett’s advice to talk about your estate plan with your adult children is a straightforward and sound approach for most families. Offspring taken by surprise in a time of emotional turmoil are more likely to become contentious.

You don’t have to reveal every detail to your heirs. Howwever, you can educate them about the contents of the will and the estate in general. Letting them know about the no-contest cause and your reasons for adding it may preempt strong reactions if they don’t learn about it until after you’ve passed, and they can’t get answers to their questions.

If the family is a blended one, someone is going to be left out entirely, or there are nuances, such as one person inheriting outright while another receives distribution through a trust over time, there’s the possibility of a challenge. If you plan to give assets to someone who isn’t a family member, like a charity or a close friend, the family may unite to challenge the will.

A no-contest clause isn’t a guarantee there won’t be a challenge after you’ve died. However, it’s a simple thing to insert into your will and reduces the risk. Consult with your estate planning attorney about whether your state allows them—Florida does not—and explore other strategies to minimize estate litigation.

Reference: Market Watch (March 14, 2026) “Avoid drama with your will by adding this to your estate plan”

Protect Your Parents’ Savings From Nursing Home Expenses

As parents age, the possibility of needing long-term care becomes a genuine concern. Nursing home expenses can exceed $100,000 per year, making it easy for a lifetime of savings to disappear within a few short years. Many families assume Medicare will cover these costs. However, Medicare only pays for short-term skilled nursing care, not long-term stays.

To protect your parents’ financial future, proactive planning is essential. With the right legal and financial strategies, it’s possible to preserve assets while ensuring quality care.

Understanding the Risk of Nursing Home Costs

Most seniors will need some form of long-term care, whether through in-home assistance, assisted living, or a nursing home. Unfortunately, many families wait until a crisis occurs before considering how to pay for care, leading to last-minute decisions that can be financially devastating.

Without planning, families may be forced to:

  • Sell assets or liquidate savings to cover care costs
  • Drain retirement funds, leaving a healthy spouse with limited income
  • Lose their home if proper legal protections aren’t in place

Medicaid is the primary payer for long-term nursing home care. However, strict asset limits can make it difficult to qualify without careful preparation.

Legal Strategies to Protect Assets

1. Medicaid Planning and Asset Protection

Medicaid requires individuals to spend down their assets before qualifying. However, strategic asset planning can help preserve wealth. Key Medicaid planning techniques may include:

  • Medicaid Asset Protection Trusts (MAPTs) – Transferring assets into a trust can shield them from Medicaid’s asset count, but this must be done at least five years before applying to avoid penalties.
  • Spousal Protections – If only one spouse needs care, the community spouse (the one staying at home) can retain a portion of the couple’s assets without affecting Medicaid eligibility.
  • Exempt Assets – Certain assets, such as a primary residence (up to a state-set value), are excluded from Medicaid’s limits. However, planning is necessary to ensure proper protection.

Without a clear Medicaid strategy, families may unknowingly deplete their assets before qualifying for benefits.

2. Long-Term Care Insurance

For those who plan early, long-term care insurance can provide financial relief by covering nursing home and assisted living costs. However, premiums increase with age, making it critical to explore policies before health issues arise. Some hybrid policies combine life insurance with long-term care benefits, offering a more flexible financial tool.

3. Gifting and Transfers

Some families consider gifting assets to children to reduce countable wealth for Medicaid. However, Medicaid enforces a five-year look-back period on asset transfers. If assets are given away during this time, Medicaid will impose a penalty period, delaying benefits.

Instead of outright gifts, placing funds into an irrevocable trust or making structured transfers can help protect assets while maintaining Medicaid eligibility.

Steps to Take Now to Protect Your Parents’ Savings

Waiting until a health crisis occurs limits options for preserving assets. Families should take these steps as early as possible:

  1. Assess current assets and long-term care needs – Understanding financial resources and care preferences allows for early intervention.
  2. Meet with an elder law attorney – Legal professionals can help create Medicaid-compliant trusts and asset protection plans.
  3. Discuss long-term care options – Exploring in-home care, assisted living, or nursing home facilities ensures informed decision-making.
  4. Review estate planning documents – Wills, powers of attorney and healthcare directives should align with long-term care goals.

Proactive planning provides financial security and peace of mind, ensuring that parents receive quality care without jeopardizing their savings.

Key Takeaways

  • Nursing home costs deplete savings quickly: Without planning, families may be forced to sell assets or exhaust retirement funds to pay for care.
  • Medicaid has strict asset limits: Failing to plan may result in losing wealth before qualifying for benefits.
  • Asset protection strategies can preserve savings: Medicaid Asset Protection Trusts and exempt asset planning help safeguard wealth.
  • Long-term care insurance offers financial relief: Early enrollment in a policy can help offset nursing home costs.
  • Early planning provides better options: Starting the conversation now prevents financial hardship and ensures better care choices.

Reference: Elder Law Answers (Jan. 16th, 2025) “Protecting Your Parents’ Assets from Nursing Home Costs”

Lacking a Strong Estate Plan, Family Battle Destroys Farm

Farms passed from generation to generation require careful estate planning to keep them in the family. Without a good estate plan, the property becomes the subject of estate battles, family fractures and even forced sales. The recent article, “How Inadequate Estate Planning Led to Likely Sale of Family Farm” from Morning Ag Clips, explains what happened to one family.

A mother who owned a farm left a will that gave life estates to her son and daughter, and upon their deaths, the will directed their respective shares to pass to their children. The son’s share would pass to his two sons and the daughter’s share would go to her own daughter and son. The mother and the son passed away and the son’s two boys weren’t interested in farming. They filed a lawsuit to partition the farm and divide the proceeds. Partition refers to a court-ordered process for dividing jointly owned property when co-owners can’t agree on its sale.

The surviving sister (their aunt) objected, as she was still alive, still owned her life estate in half the property and lived on the property. She maintained that the property could not be partitioned until after her death. The court, however, found that the mother’s will created a tenancy in common between the siblings rather than a joint tenancy with the right of survivorship. When the brother passed away, his sons inherited his half of the farm. The court ruled that they had a legal right to seek partition of the entire property despite their aunt still being alive and living on the farm.

If the two sons move forward, their aunt faces a tough choice. She can buy them out if she has the funds to do so, or the entire property will be sold. If it’s sold, she will lose her home and the family legacy at the same time.

Here’s how a better estate plan could have prevented this scenario:

Survivorship protections. The will could have created a joint survivorship life estate, so that upon the first sibling’s death, the other would have inherited full ownership. This would have delayed the transfer to the next generation until the second sibling had passed.

Using a trust. Instead of using a life estate and the remainder through a will, the farm could have been placed into a trust, which would have provided more specific directions on how the farm was to be managed, utilized and distributed across generations.

Using an LLC. The mother could have transferred the farm into an LLC (Limited Liability Company) and heirs would have inherited the LLC. Provisions could have been added to prevent partition and allow the farm’s sale only if at least a majority of the family agreed to the sale.

Maintaining multi-generational entities, such as family farms, closely held businesses, real estate and other assets, requires skilled estate planning. To keep a farm or business in the family requires an experienced estate planning attorney with knowledge of how to protect both short-term and long-term goals.

Reference: Morning Ag Clips (March 6, 2026) “How Inadequate Estate Planning Led to Likely Sale of Family Farm”

Managing a House After a Relative’s Death

When a loved one passes away, their home is often one of the most significant assets left behind. However, managing an inherited property can be complicated, involving legal procedures, financial obligations and potential family conflicts.

Knowing what steps to take can help heirs navigate the probate process, handle property expenses and decide whether to sell, rent, or keep the home.

Understanding Probate and Property Transfers

1. Determining Ownership and Title

Before making any decisions, confirming who legally owns the property is essential. Ownership depends on:

  • Whether the deceased had a will or trust specifying beneficiaries
  • The state’s inheritance laws if no will exists (intestate succession)
  • Whether the home was jointly owned by a surviving spouse or co-owner

If the property is included in a will, it must go through probate before transferring it to heirs. However, probate may not be necessary if it was placed in a living trust or owned jointly with survivorship rights.

2. Navigating the Probate Process

If the home is subject to probate, the executor of the estate is responsible for:

  • Filing legal documents to initiate probate
  • Paying outstanding debts and property taxes before distributing assets
  • Determining if the house must be sold to settle debts or be transferred to heirs

Probate can take months or even years, depending on the complexity of the estate. If multiple heirs inherit the home, they must agree on how to proceed with the property.

Financial Responsibilities of Inheriting a Home

1. Covering Mortgage and Property Expenses

If the home still has a mortgage, the heir must continue making payments or risk foreclosure. Other financial obligations include:

  • Property taxes and homeowner’s insurance
  • Utility bills and maintenance costs
  • Homeowners’ association (HOA) fees, if applicable

If the deceased had a reverse mortgage, the estate may need to sell the home or pay off the loan before inheriting it.

2. Selling vs. Keeping the Home

Once ownership is settled, heirs must decide whether to:

  • Keep the home – Ideal if a family member plans to live in it or use it as an investment.
  • Sell the property – A common choice to divide assets among heirs and cover expenses.
  • Rent the home – Provides an income stream but requires property management.

A legal dispute may arise if multiple heirs inherit the home but disagree on what to do. Having a clear estate plan can help prevent these conflicts.

Steps to Take When Managing an Inherited Home

  1. Secure the Property – Change locks, check for damages and notify homeowners insurance of the owner’s passing.
  2. Review Debts and Expenses – Determine if the home has outstanding loans, unpaid taxes, or liens.
  3. Get a Home Appraisal – Assess the market value to guide selling, renting, or estate distribution decisions.
  4. Settle Ownership and Probate Issues – Work with an attorney to transfer the title to heirs or sell the property.
  5. Decide on Next Steps – Weigh financial and personal factors before keeping, selling, or renting the home.

Get Legal Guidance for Managing an Inherited Home

Inheriting a home can be complex, requiring careful legal and financial planning. Whether you need to navigate probate, resolve title issues, or explore selling options, our law firm can help ensure a smooth transition.

Key Takeaways

  • Property transfer depends on probate: If a will exists, the executor must navigate probate before heirs can claim ownership.
  • Financial obligations continue after inheritance: Mortgage payments, taxes and maintenance costs must be managed immediately.
  • Heirs must decide whether to sell, rent, or keep the home: Each option has legal, financial and emotional implications.
  • Legal conflicts may arise with multiple heirs: Having a clear estate plan helps prevent disputes over inherited property.
  • Professional guidance ensures a smooth transition: An estate attorney can assist with probate, property transfers and tax implications.

Reference: AllLaw (Aug. 03, 2022) “Transferring Real Estate After Death”

Good Parenting and Estate Planning Work Together

Wealth created by one generation is often lost by the third generation when financial discipline, respect for the process of wealth creation and understanding the responsibilities of wealth aren’t taught from generation to generation. There are ways that parents can help their children and grandchildren overcome this tendency, and estate planning strategies are part of the process, says a recent article from Barron’s, “Teach Your Kids to Preserve Family Wealth, Not Squander It.”

Preparing to transfer wealth is best done with an experienced estate planning attorney. In addition, an annual letter to your children with a summary of the family’s financial situation and a statement of the parent’s values will help educate and update the family.

The annual letter should also share info about where to find wills and trusts and other estate planning documents, contact info for the estate planning attorney, financial advisor and accountant, and the location of life insurance policies. Don’t neglect an inventory of digital assets, their value and how to access them.

Trusts offer an opportunity to express values by creating a trust with incentive provisions and age-related triggers. When a beneficiary reaches certain milestones, like graduating from college or getting married, distributions can be made. There are also means of discouraging problematic behaviors. Provisions may be written to delay distributions until a beneficiary retains a job or enters a rehabilitation program and maintains sobriety for a certain period. Your estate planning attorney will discuss which type of trust is best for your family.

Start by defining your own family’s values and what it looks like to put those values into real-life scenarios. For instance, if you value entrepreneurial spirit, a trust could be created with discretionary distributions and non-binding language encouraging heirs to use the funds to start or expand a business. A trust could also encourage children to buy a home in a community with an excellent school district to benefit their children.

Stating these models without living them defeats the end goal. Children learn values by seeing how their parents behave. These lessons are learned early in life.

For high-net-worth families, avoiding a sense of entitlement is a major challenge. This is where generations lose a work ethic and wealth. Good parenting can avoid this by encouraging children to become resilient and allowing them to fail in safe settings. Developing confidence based on their abilities, whether in academics, sports, or community efforts, will foster a sense of self and independence not based on the family’s wealth.

For regular families intent on building wealth over generations, a healthy respect for the work it takes to build bank accounts, buy a home and create the stability needed for the future takes extra effort. Creating an estate plan with an experienced estate planning attorney can help you plan for the unexpected.

Reference: Barron’s (Feb. 7, 2025) “Teach Your Kids to Preserve Family Wealth, Not Squander It”

Obtaining Power of Attorney for Parents

As parents age, it becomes increasingly important to plan for the possibility that they may need assistance managing their financial affairs or making healthcare decisions. Without proper legal documentation, adult children may face significant obstacles in handling their parents’ needs, especially in cases of cognitive decline or medical emergencies.

A power of attorney (POA) is a legal document that designates a trusted individual to act on another person’s behalf in financial, medical, or personal matters. Obtaining a POA before a crisis arises ensures a smooth transition of responsibilities and prevents costly legal battles.

What Is a Power of Attorney?

A power of attorney grants legal authority to a designated person, known as an agent or attorney-in-fact, to make decisions on behalf of another individual, known as the principal. The scope of authority varies depending on the type of POA.

Types of Power of Attorney

  • Financial Power of Attorney – The agent can manage financial matters, such as paying bills, handling investments and managing property.
  • Medical Power of Attorney (Healthcare Proxy) – Authorizes the agent to make healthcare decisions if the principal becomes incapacitated.
  • General Power of Attorney – Grants broad authority over financial and legal matters. However, it typically ends if the principal becomes incapacitated.
  • Durable Power of Attorney – When “durable,” the POA remains in effect even if the principal is unable to make decisions due to illness or injury.
  • Limited (or Special) Power of Attorney – Provides authority for a specific transaction or period.

Choosing the right type of POA ensures parents receive the support they need while maintaining as much independence as possible.

Steps to Obtain a Power of Attorney for Your Parents

1. Start the Conversation Early

Many families delay discussing estate planning because of discomfort around aging and incapacity. However, waiting too long can result in complicated legal hurdles if a parent becomes unable to grant POA due to cognitive decline.

Approach the conversation sensitively, emphasizing that a POA protects their wishes and prevents unnecessary stress. Highlighting real-world examples of families who struggled without one may encourage proactive decision-making.

2. Determine the Right Type of POA

Assess your parent’s needs and preferences to determine the most appropriate POA. A durable financial POA may be suitable if they require help managing finances. A medical POA is essential to ensure that future healthcare decisions align with their wishes.

3. Choose a Trusted Agent

The person granted POA should be responsible, financially stable and able to handle difficult decisions. While many parents choose an adult child, they may also select a trusted family friend, financial advisor, or attorney.

The agent should be someone who:

  • Understands the parent’s values and preferences
  • Is capable of managing finances and healthcare decisions responsibly
  • Will act in the parent’s best interests without personal bias

Naming an alternate agent is also recommended if the primary agent is unable or unwilling to serve when needed.

4. Draft the POA Document

A POA must be properly drafted and executed according to state laws to be legally valid. While online templates exist, they may not provide the necessary legal protections. An estate planning attorney ensures that the document:

  • Complies with state-specific legal requirements
  • Clearly defines the agent’s powers and limitations
  • Includes provisions to prevent abuse or mismanagement

5. Sign and Notarize the POA

Most states require signing the POA in front of a notary public. Some states also require witnesses, particularly for medical POAs.

Once signed, distribute copies to relevant parties, including:

  • Financial institutions (for financial POAs)
  • Healthcare providers (for medical POAs)
  • Family members involved in caregiving

Keeping the original document in a secure but accessible location ensures that it is available when needed.

What Happens If No Power of Attorney?

If a parent becomes incapacitated without a POA in place, family members must petition the court for guardianship or conservatorship. This process is:

  • Time-consuming – Court proceedings can take months, delaying essential decision-making.
  • Expensive – Legal fees can accumulate quickly.
  • Emotionally challenging – Family members may disagree over who should be appointed guardian.

A properly executed POA prevents court involvement and ensures that a trusted individual is legally authorized to act on the parent’s behalf.

Common Misconceptions about Powers of Attorney

“I’ll Just Handle It when the Time Comes”

Many adult children assume they can automatically step in and manage a parent’s affairs in an emergency. However, financial institutions and healthcare providers will not grant access to accounts or medical records without a POA.

“A Will Covers Everything”

A will governs estate distribution after death—it does not grant decision-making authority during a parent’s lifetime. A POA is essential for managing affairs while they are still alive.

“POAs are Only for the Elderly”

While POAs are critical for aging parents, they are equally important for adults of any age. Unexpected accidents or illnesses can leave individuals unable to make decisions, making a POA a valuable safeguard for all adults.

Key Takeaways

A POA ensures financial and medical decision-making: Without it, family members may need to go through costly court proceedings to obtain legal authority.

  • The right POA depends on the parent’s needs: Financial, medical and durable POAs serve different purposes and should be chosen carefully.
  • A POA must comply with state laws: Improperly executed documents may not be legally valid, making professional guidance essential.
  • Without a POA, court intervention is required: If a parent becomes incapacitated without a POA, family members may need to pursue guardianship, which can be time-consuming and expensive.
  • Starting the conversation early prevents future stress: Delaying POA discussions can lead to legal complications and unnecessary burdens for family members.

Reference: A Place for Mom (Aug. 5, 2024) “A Beginner’s Guide to Power of Attorney for Elderly Parents”

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