Page 22 - Senior Link Magazine Fall 2017 - Online Magazine

Estate Planning for Life

MEDICAL AND FINANCIAL POWERS OF ATTORNEY

The author strongly recommends seeking legal counsel from an attorney. by Lee Franks
This article contains absolutely no actionable legal advice.

If pushed to define estate planning, most people might effective immediately, with fairly broad gifting authority and
suggest that the phrase has to do with who gets your stuff provisions allowing his agent to establish a qualified income trust
when you die. Although partially correct, estate planning for him and to access his safe deposit box.
also involves planning for life, particularly for life beyond The cost of long term care should be considered and effective
capacity. Consider the following story. estate planning should include the possibility of applying for
A 59-year-old office manager, mother and grandmother, Medicaid. If the individual became incapacitated and needed
struggles to give her employer forty hours each week, to care in a skilled nursing facility, his income would be insufficient
attend events for each grandchild, to provide her husband to cover monthly expenses. Nevertheless, his income disqualifies
companionship, and to care for an ailing father who him for Medicaid without the creation and proper administration
sometimes cannot remember his daughter’s name. She has of a qualified income trust (commonly called a Miller trust).
tried to make some long term decisions for him and to get Further, he would need his agent to dispose of resources in
his affairs in order, but his financial judgment failed a long excess of the Medicaid limit, currently two thousand dollars, in a
time before anyone realized something was wrong, and the manner consistent with his wishes and best interests.
bank tells her she has no authority to act for him. Just as Effective medical and financial powers of attorney can greatly
worrying, when she called the health insurance company simplify caring for an aged or ailing loved one. As illustrated
with questions about his Medicaid Supplement, the ‘service by the simple examples above, estate planning involves more
representative’ refused to speak with anyone but her father, than divvying up what remains of someone’s stuff when her or
who thought he was talking to an old army buddy from the she dies. Good estate planning contemplates life as well, and it
Korean War. includes making things easier for the very people that make that
Although fictional, this story illustrates typical difficulties life worth living – those that provide care and comfort during
faced by those caring for aging or ailing family members. one’s twilight years and those left behind by the final call.
Often, the caregiver ends up in that role whether he or
she had the desire, time, or wherewithal to shoulder the
burden. No one planned for things to happen as they did,
the situation just evolved.
When the caregiver lacks effective legal tools to do the job,
caring for an aging loved one can overwhelm the caregiver’s
financial and emotional resources.
The estate planning field encompasses entire professions,
industries, and agencies with a plethora of purposes,
theories, and legal instruments. This article offers a few
thoughts on just two basic documents that can help persons
who end up living beyond capacity and make it easier
for their care givers to assist them – the medical power of 8207 Hudson Ave, Ste D • Lubbock, TX 79423
attorney and a financial power of attorney.
In granting a medical power of attorney, a person,
also known as the ‘principal’, gives to another, known (806) 368-8805
as the ‘agent’, the right or authority to make health care
decisions for the principal if principal cannot. The agent fax: (806) 686-0444
can and should consult with other family members, if
there are any available, but a provider needing a decision Medicaid Qualification
made immediately will want to deal with one authorized Supplemental Needs Trusts
individual at a time, not a committee.
In granting a financial power of attorney, the principal Lee Franks Estate Planning
gives one or more agents the authority to conduct business Guardianship
on behalf of the principal. The law requires the agent to act
in the best interests of the principal and restrains the agent’s Probate
ability to profit from the relationship. Moreover, the law
requires the agent to make it clear when he or she is acting Your Elder Law
as an agent to avoid personal liability for the actions taken. &
To illustrate, an elderly individual with the capacity Estate Planning Team
to execute a power of attorney, might have a small estate, Laura Beth Pleasant
income from Social Security and a pension totaling $2500 per FPLAWTEAM.COM
month. He might consider executing a power of attorney,

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