AGING ALONE: HOW TO PROTECT YOURSELF AND YOUR HEIRS

Shannon L. Evans, LLM, JD

sle@evans-associates.com

702-699-7333

 

No one can predict the final chapter of his or her life. However, there are a few important steps to ensure that you remain safe and financially stable.

 

1. Update your Medical Power of Attorney: Each state has a form naming who you authorize to make decisions in medical emergencies. The people you name can be from anywhere.

 

2. Update your Financial Power of Attorney: Each state has a form to authorize someone to handle your finances if you are incapacitated. A general power means the designated person has power starting now. A springing power means, a doctor certifies that you are mentally incapacitated, and the person named can handle your financial affairs.

• Many banks require their own form and will not respect the state form. Check with your bank to verify if they require you to use their form.
• If you have a trust and/or will, usually the persons named as successor trustees and executors are the same as the financial power of attorney.
• This can be a DANGEROUS power. Whoever you name will have control of your money. But, if you fail to name anyone, the Public Guardian may take over.

 

3. Once you are deceased, your powers of attorney are no longer valid. Medical and Financial Powers of Attorney are only to help if you are incapacitated.

 

4. Wills: Even if you have a trust, which is coordinated with your will, the will does several important things:

• Cremated or buried: Mortuaries often require a copy of the will to confirm your desires.
• Guardian: Even though a will means you are deceased, Nevada will respect your preferred guardians in the case of incapacity, if they are named in your will. Since July of 2015, nonNevada residents can serve as guardians, so long as they designate a Nevada Registered Agent to accept service of process.

 

5. Trusts: There are two primary benefits for you.

• Avoids probate, so long as the accounts, properties and entities owned are titled to the trust.
• Allows a successor trustee that you select to handle your trust assets if you are incapacitated. That is why it should be coordinated with your financial power of attorney.

 

6. Bank accounts: Two other ways to avoid probate for personal accounts is to either name a joint owner or “POD” which means pay on death. There are pros and cons to each.

 

7. IRA/401Ks: Make sure you name primary and contingent beneficiaries. NOT YOUR TRUST.

 

8. Life Insurance: Make sure you name primary and contingent beneficiaries. A trust is okay.