Having control over your own finances and health care is something most people take for granted when they are younger. But with age, seniors are often unable to exercise the same control. That's why it can become increasingly important for you to help your aging loved ones manage these issues. No matter how good your intentions are, there are many legal issues that could trip you up as you care for your loved ones.
How well do you know the legal issues of caregiving? Take our quiz to find out.
The process of writing a will takes a few weeks at most.
False. It may take six months to several years to complete a legal will.
A Health Care Proxy is a general term that describes documents that allow another person to make health care decisions for you if you become incapacitated.
True. These documents may be called also be called a Living Will, Health Care Directive, Health Care Power of Attorney, Durable Power of Attorney for Health Care Decisions, or other similar names.
Revocable Living Trusts are similar to wills.
True. A Revocable Living Trust lets parents direct how their property will transfer after their death. It also lets them choose a person to transfer the assets. Unlike a will, however, trust property goes immediately to the beneficiaries without probate.
Health care power of attorney (HCPA) is when your attorney gives the power to your children to manage your finances and automatically inherit 75% of your wealth.
False. Health care power of attorney is a special kind of durable power of attorney that lets you give another person the power to be your advocate and make decisions regarding your medical treatment. It becomes effective only if you are temporarily or permanently unable to make your own decisions.
Parents can make an adult child a joint owner of their bank accounts so that the child can act for the parents in an emergency.
True. Parents can also appoint someone as joint renter, deputy, or agent for their safe deposit box.
Durable power of attorney for finances (DPA) is a document that allows you to give another person the authority to make financial decisions on your behalf.
True. Without a DPA, the court must appoint a spouse, close relative, or companion to manage an incapacitated persons financial affairs. Typically, a DPA goes into effect as soon as you sign it or, if you specify, when a doctor certifies that you have become unable to make decisions.
A Living Trust allows you to create a trust and appoint a trustee to manage your assets if you become incapacitated.
A living will is a document that insures that your health insurance will cover all medical expenses after the age of 65.
False. A living will directs the doctor to withhold or withdraw life-sustaining treatment should a patient be diagnosed with a terminal condition and be unable to state his or her preferences.
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