Estate planning and cognitive aging
Planning ahead can help protect you and your loved ones
Conversations concerning cognitive decline can be difficult. By planning ahead, you can protect yourself and your loved ones should you ever find yourself unable to make personal or financial decisions.
Americans are aging. The 2020 United States Census showed that the number of Americans over the age of 65 has grown by over a third since 2010.1 As we age, we may become more susceptible to financial abuse, such as identity theft, fake investments and offers, threats, and intimidation. This vulnerability can be further exacerbated for people with a cognitive decline, such as dementia.
1 in 6
$28.3 billion
5.8 million
To ensure your wishes or those of your loved ones are carried out as intended, take time to think through what is important and put critical documents in place.
A power of attorney for property, a last will and testament, and a revocable trust can all work in conjunction to efficiently carry out your wishes, not only when you pass but also if you become incapacitated.
It’s critical to have legal documents in place that speak to your wishes when you no longer can speak for yourself.
Power of attorney for health care (sometimes referred to as an advanced health care directive)
- Allows you to name an agent to make health care decisions on your behalf.
- Most often, an agent’s powers will take effect if you become incapacitated and can no longer make decisions for yourself
- In some states, a power of attorney for health care will include an HIPAA (health insurance portability and accountability act) release, a living will and instructions on resuscitation:
- A HIPAA release allows an agent access to your medical records
- A living will provides an agent with instructions regarding life-sustaining measures (for example, whether mechanical ventilation or a feeding tube is acceptable if a physician deems you to be in a persistent vegetative state)
- Do not resuscitate orders provide an agent with instructions as to your wishes on resuscitation
- You may also want to consider having documentation providing instructions regarding burial wishes and organ donation
- A HIPAA release allows an agent access to your medical records
Organize and communicate
- You’ll want to organize all of your important information while you are able to do so and let your loved ones know the location of these items.
- Just as important, communicating your wishes to your loved ones while you are of sound mind can ease the emotional burden for your agent if you are incapacitated.
To learn more about estate planning for yourself and aging loved ones, download our publication, Estate planning and cognitive aging, or speak with a UBS Financial Advisor.
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