What Documents Do Elderly Parents Need in Their Estate Plan?

As your parents age, a comprehensive estate plan becomes increasingly important. Here’s a guide to the essential documents that should be included in your elderly parents' estate plan.

Last Will and Testament

A Last Will and Testament is a foundational document in any estate plan. It outlines how your parents want their assets distributed after they pass away. The will also names a Personal Representative (or executor) who will be responsible for managing the estate, paying any debts, and distributing the assets according to the will’s instructions. Without a will, the state’s intestacy laws will determine how assets are distributed.

Durable Power of Attorney

A Durable Power of Attorney (POA) allows your parents to appoint someone they trust to manage their financial affairs if they become unable to do so themselves. This person, known as the agent, can handle tasks like paying bills, managing investments, and handling property transactions. The "durable" aspect means that the POA remains in effect even if your parents become incapacitated. 

Healthcare Surrogate Designation

Also known as a Medical Power of Attorney, this designates someone to make healthcare decisions on the parents’ behalf if they are unable to do so. This document is crucial in situations where your parents cannot communicate their wishes due to illness or injury. The designated surrogate will have the authority to make decisions about medical treatment, surgery, and other healthcare matters in line with your parents' preferences.

Living Will

Sometimes called an Advance Directive, outlines your parents’ wishes regarding end-of-life care. It specifies what types of life-sustaining treatments they do or do not want if they are terminally ill or in a permanent vegetative state. A Living Will provides clear guidance to both healthcare providers and family members to avoid difficult decisions during emotional times.

Revocable Living Trust

A Revocable Living Trust is a legal document that places your parents’ assets into a trust during their lifetime. They can serve as the trustee, maintaining control over the assets, and name a successor trustee to manage the trust after their passing. A significant advantage of it is that it allows assets to bypass probate, resulting in a faster and potentially less costly distribution to beneficiaries.

Consulting with an experienced estate planning attorney can help make sure that all necessary documents are in place and made to your family’s specific needs.

For more information, contact our office at Askew & Associates, P.A. by calling 954-546-2699.