Do you know who will handle your finances and medical decisions if you become incapacitated? Have you designated beneficiaries for your assets? If not, you’re in the majority.
Only an estimated 46% of adults over 55 have completed significant estate planning. Some may assume they have plenty of time to get their estate in order. Others may not realize the importance of estate planning.
We’re here to discuss estate planning for seniors moving to assisted living. Read on to learn what estate planning is, why it’s important, and what steps you can take to get your estate in order.
What Is Estate Planning?
Estate planning is the process of creating multiple legal documents that protect your interests, both financial and medical. Proper estate planning will ensure that your assets get distributed as you see fit, including:
- Physical property (e.g., vehicles, heirlooms, and furniture)
- Liquid assets
- Life insurance
- Stocks, bonds, and other investments
Estate planning is not just for the wealthy or merely a matter of financial distribution. If you become incapacitated, you will also designate individuals to take over your important decisions. In other words, estate planning allows you to decide who may step in and manage your money and health decisions on your behalf.
Why Does Estate Planning Matter?
Estate planning is a huge benefit to your loved ones. If you don’t have designated beneficiaries, your assets can get tied up in probate court for a long time. The court will distribute most assets among family members, and close friends or beloved organizations may not receive anything.
In fact, most decisions will default to the court’s ruling. In North Carolina, anyone who becomes incapacitated without an advanced directive may fall under the care of your next of kin. Rather than the person of your choosing, this person will have the power to make medical decisions for you.
Estate Planning for Seniors Moving to Assisted Living
Whether you’re getting ready to move into assisted living or already settled in, now is a great time to plan your estate. Here are the steps to complete to get your legal documents in order.
Get Legal Aid
Estate planning is a complex process that can require the help of legal experts and notaries. Before you get started, it’s useful to think about the kind of legal aid you’ll use.
One option is to hire an estate planning attorney. This is the best choice for personalized care and airtight legal oversight. Because seniors in assisted living may have complex financial needs, working with an attorney is a great option to ensure all current and future expenses are accounted for.
There are also many online estate planning tools, often at a lower cost. The only drawback is that many online programs use generic templates and may not account for state or local laws.
Assess All Assets
The next step is to assess what your estate consists of. It’s often easiest to begin with assets with a clear dollar value, including:
- Savings accounts
- Retirement funds
- Investment accounts
- Life insurance policies
- Outstanding debt
From there, begin to inventory your possessions, including those you intend to move into your new apartment and those that you’re storing elsewhere. Make sure to include large assets like vehicles, real estate, and businesses. If the specific financial value of any of these assets is important to your planning, you may need to get an appraisal.
Budget for Assisted Living Costs
While reviewing your assets, you can budget for assisted living and long-term care costs. Start by assessing the value of your long-term care insurance, if relevant. Long-term care insurance is often non-transferable, meaning your beneficiaries can’t cash in on any remaining balance.
Budgeting for assisted living is a great way to ensure you have the financial support you need and determine what may be left for loved ones. It’s also a great way to ensure that, if necessary, your power of attorney pulls funds from the right places to cover your expenses.
Create a Will or Trust
A will outlines who your beneficiaries are and what they’ll receive upon your death. This includes all of your assets, although you can also use your will to name a person to take over ownership of your pets. You will also use your will to name an executor who will oversee this distribution.
A trust is a similar document that allows for one key addition. In a trust, you can transfer your assets to a trustee until a set time when your beneficiaries may claim them. This is a common choice when one or more beneficiaries are minors or when you want specific assets to cover specific costs (such as college or housing).
Designate a Power of Attorney
Regardless of your current health, it’s always a good idea to designate a power of attorney. In fact, you’ll need to do this twice: once for medical care and once for financial oversight. This can be the same person, but it doesn’t have to be.
Always choose a power of attorney you trust to make sound decisions that reflect your wishes.
Create a Living Will
A living will ensures that most major medical decisions your healthcare power of attorney makes reflect what you would want. This document allows you to outline the types of care you would want and those you would not want. This includes choices surrounding:
- Medications
- Feeding tubes
- Life support
- Resuscitation
- Palliative care
- Organ donations
Considering these kinds of things can feel strange, especially when you’re in good health. You aren’t required to have a living will to have a healthcare power of attorney. However, drafting a living will can be useful to your loved ones by eliminating their need to make hard choices for you.
Find Out More About Raleigh Assisted Living Options for Retirement Care
Estate planning for seniors moving into assisted living can seem overwhelming or unnecessary at first glance. We hope this guide has shown the importance of estate planning and how simple it can be with the right legal assistance.
If you’re looking for a lively and pet-friendly community in Raleigh, we hope you’ll consider TerraBella Northridge. We’ve got great community events, fantastic dining, personalized fitness programs, and tiered care that changes with your needs.
Schedule a tour to see for yourself why North Carolina seniors love TerraBella Northridge.
