Cognitive decline is a concern many of us may face as we age. However, it is something to face head on. Planning for this possibility is not about expecting the worst but being prepared. Whether you or a loved one are already experiencing early signs of cognitive decline or want to be proactive, an elder law attorney can help protect your future.
According to Assured Assisted Living, the best time to start planning for cognitive decline is before it happens. Working with an elder law attorney can create a legal framework that safeguards your wishes, even if you face cognitive impairment later in life. Above all, there are three critical legal tools to be proactive now, provide for asset protection, and prevent problems in the future.
One of the most essential legal documents is a Durable Financial Power of Attorney. This document appoints someone you trust to handle your financial and legal affairs if you cannot do so. Choosing this person ahead of time, along with a backup or two, can prevent court intervention and ensure that your finances remain secure. In the asset protection realm, a Financial Power of Attorney with unlimited gifting is crucial to enable your Agent to protect assets for your heirs in the event you require skilled nursing.
In addition to financial matters, it is important to consider your healthcare decisions in an emergency. By using a Durable Healthcare Power of Attorney (for positive care/positive treatment when you can recover) and a Living Wil or Advance Healthcare Directive (for end-of-life instructions), you can outline your wishes if you ever become incapacitated or unable to make medical decisions for yourself. Just because you can’t speak for yourself doesn’t mean you have to lose agency in your care.
Another very important way to be proactive now and plan for a potential cognitive decline in the future is for a husband and wife to prepare Wills that provide for assets of one spouse to pass into a supplemental needs trust for the other spouse, rather than passing those assets directly to the spouse. Simply put, with the correct provisions in your Will, if your spouse suffers from a cognitive decline, assets of the spouses are retitled to the healthy spouse. If the healthy spouse predeceases the cognitively-impaired spouse, the marital assets will pass through the healthy spouse's Will into a supplemental needs trust for the unhealthy spouse. Those assets are available for spouse's care, but the majority of the assets, if not all, in that trust are protected from creditors, including a nursing home.
Managing day-to-day tasks, such as paying bills or understanding complex legal documents, can become problematic as cognitive decline progresses. For some, the decline may occur gradually, giving time to plan and adjust. For others, it may be more sudden. With a plan in place, your family could avoid the stress of navigating the court system to gain control over your finances or healthcare. Keep in mind that even a cognitively declining individual may retain enough capacity to have prepared and sign updated estate planning documents, rather than going through the court system for a guardianship, which can be quite costly.
Proactively creating legal protections protects yourself from potential complications, allowing your loved ones to act quickly and efficiently when needed.
If you suspect that you or a loved one may be experiencing cognitive decline, it is essential to seek medical advice early. As discussed in a recent reflection from an attorney facing cognitive impairment, many health conditions, such as vitamin deficiencies or sleep disorders, can mimic symptoms of cognitive decline. Addressing these issues early can slow or even reverse specific symptoms. If your cognitive decline is more advanced, early diagnosis allows for more effective legal planning.
Building a support team to help manage legal and healthcare issues is essential when planning for cognitive decline. An elder law attorney can assist in preparing the necessary documents to ensure that trusted individuals can step in to manage your affairs, if needed. Having a reliable primary care physician and specialists, such as neurologists or geriatricians, can also help identify health-related concerns early. Also, at Curran Estate & Elder Law, a life care planning firm in Berks County, Pennsylvania, we have a care coordinator on staff who helps loved ones of a declining person navigate all of the care options that come along.
Planning for cognitive decline is also about protecting your family. Your family could face emotional and financial strain without the proper legal documents. Legal battles over guardianship, medical decisions, or asset management can be stressful and time-consuming. By acting now, you can help avoid these challenges and ensure that your family is cared for in a way that reflects your wishes.
The future is unpredictable, but your legal plans don’t have to be. Whether you’re already noticing early signs of cognitive decline or want to be proactive, now is the time to meet with an elder law attorney. Contact us today to schedule a consultation and start creating a plan that protects your future and gives your family peace of mind.
Reference: AssuredAssistedLiving (Sep. 20, 2024) "Legal and Financial Planning and Cognitive Impairment”
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