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Updating Your Estate Plan Is Crucial When You Notice Cognitive Decline

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Recognizing signs of cognitive decline in yourself can be emotional and overwhelming knowing that declining memory, decision-making abilities, and judgment often lead to difficulties managing personal, legal, and financial matters. Updating your estate plan as soon as you recognize the decline is critical to ensure you’re your wishes are honored, your assets protected, and family disputes are minimized. With that in mind, the Essex Junction elder law attorneys at Unsworth LaPlante, PLLC discuss why updating your estate plan is crucial when you notice cognitive decline.

Why Acting Now Is Crucial

Cognitive decline may be the natural result of aging or may indicate conditions such as Alzheimer’s disease or dementia. Acting quickly is essential because you must have the legal capacity to create or update estate planning documents for those documents to be honored and withstand challenges. Waiting too long could lead to legal complications and disputes which could lead to a court appointing a guardian or conservator to make decisions for you. By addressing estate planning needs promptly, you can ensure your wishes are legally protected.

Create or Update Key Estate Planning Documents

If you do not yet have an estate plan in place, it is essential to create one immediately. For those with an existing plan, now is the time to review and update it. Essential estate planning documents to create or update include:

  • Last Will and Testament: This document specifies how assets will be distributed and names an Executor to oversee probate. Without a Will, state laws will decide asset distribution, which may not align with your wishes.
  • Revocable Living Trust: A trust allows you to manage assets during your lifetime and streamline their transfer after death. Importantly, it enables you to name a Successor Trustee who will manage trust assets if you become incapacitated.
  • Durable Power of Attorney: This document designates someone to manage your financial and legal matters if you are unable to do so. Choosing a responsible and trustworthy Agent is essential.
  • Healthcare Power of Attorney and Living Will: These advance directives allow you to appoint someone to make medical decisions for you and outline your preferences for end-of-life care.

Choose the Right People for Key Roles

Selecting individuals for fiduciary roles, such as Executor, Trustee, or Agent, is a crucial part of the process. When making these decisions, consider:

  • Capability: The person should have the skills and judgment to handle financial, legal, or medical matters.
  • Trustworthiness: Ensure they will act in your best interest.
  • Willingness: Confirm they are willing to accept the role.
  • Backup Options: Name alternates in case the primary choice is unavailable.

Simplify Financial Affairs

Cognitive decline can make financial management challenging. Simplify matters by consolidating accounts, setting up automatic payments, and organizing records of all financial accounts, insurance policies, and assets. Keeping everything in one accessible location makes it easier for a Trustee or Agent to step in if needed.

Plan for Long-Term Care

Long-term care can be expensive, with costs exceeding $100,000 annually, on average, across the nation. To prepare, consider:

  • Long-Term Care Insurance: If affordable, this can help cover costs for services like memory care or assisted living; however, if you are already noticing signs of cognitive decline it may be cost-prohibitive to purchase long-term care insurance at this point.
  • Medicaid Planning: Medicaid may cover long-term care costs, but strict eligibility requirements apply. An attorney can assist with strategies such as transferring assets or creating trusts to preserve your estate while meeting eligibility criteria.

If You Have Noticed Cognitive Decline, Can We Help You Update Your Estate Plan?

For more information, please attend one of our upcoming FREE webinars. If you have noticed signs of cognitive decline and are ready to update your estate plan, contact an experienced Essex Junction elder law attorney at Unsworth LaPlante, PLLC by calling 802-879-7133 to schedule your appointment today.

Wendy S. Hillmuth
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