Why Elderly Parents Need an Estate Plan

You and your elderly parent are thinking about the future and what will happen to their assets after they've passed. You've found a writing a will guide and have started naming beneficiaries. Is that enough?

According to the National Council on Aging, thorough estate planning involves much more than writing a will. Their checklist also includes:

Trusts
Power of attorney
Living wills
Tax planning documents

What are the benefits of estate planning vs will and how can a more comprehensive approach benefit both elderly parents and their families? Read on as we share the top estate planning benefits.

Estate Planning vs Will: Key Differences

If you've already written a will, why do you need estate planning? Let's take a look at the two most important differences between estate planning vs will.

Planning for Your Future

When you write a will, you'll designate beneficiaries for assets like investment accounts and real estate. Your beneficiaries will receive these assets after you pass away. Unfortunately, the standard will is not designed to account for any decision-making while you're still alive.

Estate planning includes the legal designation of your power of attorney. A power of attorney (aka an agent) is someone you trust to make financial and medical decisions on your behalf if you become incapacitated. You can also create a living will, which outlines specific directives your family must follow while you are still alive.

Building Nuance Into Your Inheritance Planning

As we mentioned earlier, estate planning often includes trusts in addition to (or instead of) a will. You can build a lot more nuance into your inheritance planning when writing trusts vs wills. For example, trusts allow you to:

Distribute assets before death
Name an agent to manage funds for minors or family members with special needs
Decide if you want to finalize your plans (irrevocable trusts) or give yourself time to make changes (revocable trusts)

Not everyone will need to make use of trusts. However, this is a good choice if you want to leave assets to anyone who may need help managing them.

Benefits of Estate Planning

Now you understand why writing a will is only one portion of estate planning. Let's break down the biggest benefits of estate planning for elderly parents and why families should start talking about estate planning sooner rather than later.

Assessing Available Assets

When was the last time you evaluated your assets and the money you have to support your retirement years? Estate planning is a great tool for protecting your family, but it's also a great tool for making retirement care decisions.

For example, by assessing your available assets, you can decide when and where to seek assisted living. After all, while providing for your family is important, you deserve to use the wealth you've built to take care of yourself and enjoy your retirement years.

Protecting Assets and Their Distribution

For some families, a will is enough to account for all assets and their distribution. For others, more thorough planning may be necessary to ensure that every asset, liquid and otherwise, has a recipient, an agent, and a timeline for receipt, ensuring two important things:

All assets get distributed exactly as you intended.
There is no room for dispute or argument over who should receive what.

As an elderly parent, you don't want your family to deal with both their grief and conflict over your assets after you pass.

Minimizing Taxes

Estate taxes can take a significant portion of your assets, depending on the overall value of your estate and where you live. Fortunately for Ohio residents, there is no state inheritance tax to worry about. However, you may need to account for federal or gift taxes while preparing to distribute your assets.

During the process of estate planning, elderly parents will work with a variety of experts, including tax planners. They can build provisions into your estate planning documents that minimize the tax burden on your beneficiaries.

Avoiding Probate

If you're thinking about asset distribution, you've probably encountered the concept of probate. Probate is a complex legal process by which a court supervises the distribution of assets. If your estate goes into probate, it can take over a year for any of your family members to gain access to your assets.

Not only does probate take time, but it costs money. According to Smart Asset, Ohio residents can expect to pay up to $7,500 in legal fees alone if they have to go through probate.

Making Healthcare Decisions

As we mentioned earlier, true estate management doesn't just account for what will happen after you pass away. It also creates a plan in the event that you require decision-making assistance in life.

The National Poll on Healthy Aging found that less than half of American adults have advanced care planning. Now is the time to increase that number so more elderly parents will have a trusted representative making important decisions about long-term care and life-saving provisions if necessary.

Enjoying Peace of Mind

At Campbell Place Assisted Living, our senior amenities are designed to give elderly parents and their families peace of mind. Choosing the right assisted living community ensures that you can live with dignity and joy as your needs increase.

Estate planning also allows for greater peace of mind. It allows you to make important decisions for and with your family now so that your desires are represented even when you can no longer enforce them personally. Talk to an estate planner today about the documents you need to protect your assets and your goals.

Prepare for Your Future With Estate Planning

We hope this guide has shed light on the difference between estate planning vs will writing so you and your family can make informed choices for the future. Now, it's time to think about where you'll go to seek quality care.

Campbell Place Assisted Living is a top choice for seniors in Bellefontaine, OH, because we take a holistic approach to senior care. In addition to personal care assistance, we also provide amenities like quality dining and daily activities. Schedule a tour so you can find out why our residents love our community.