Powers of Attorney and Health Care Proxies

As I stated yesterday, me and my fellow Boomers, are, of course, in the last scene of all, in second childhood and we need to plan for the end when we are sans teeth, sans eyes, sans taste, sans everything. One way to do this is to have an estate plan. Yesterday I talked about Wills today I want to talk about  Powers of Attorney and Health Care Proxies

People should also work with a lawyer to execute a durable power of attorney and when they create a Health Care Proxy

The Power of Attorney document authorizes a named individual (the agent) to act on behalf of a person (the principal) if the principal becomes incapacitated. It applies only while the principal is alive. At death, the powers pass to the executor of the estate.

A key decision is whether to grant the power of attorney to a relative or to a professional such as an attorney. If an older person does not trust family members with this responsibility or is concerned that a family conflict may erupt over the chosen family member, appointing an independent professional may be the best alternative. Second marriages and mixed families raise the potential for problems in these areas.

Unfortunately, many cases of elder abuse and even stealing do involve family members, so it is worth being cautious in granting this power.

The other important document is the health care proxy. Also called a health care power of attorney, this may be a standard state-issued form that spells out the person’s wishes for care at the end of life.

The wishes may cover the extent to which the person wants use of extraordinary measures that prolong life and whether to allow organ donation. It may name specific medical procedures to use or not use when the person is terminally ill and unable to make decisions.

Typically, the health care proxy form appoints a health care agent and an alternate health care agent to carry out the person’s wishes. Often these appointees are the spouse, who is typically named the agent, and an adult child, typically named the alternate.

Retirees should know that having a health care proxy in place is extremely important. It can relieve a family from a terrible decision-making burden at a time of extreme stress.

All the world

Returning to my high school reunion, got me thinking about a bunch of stuff that is important to all of us as we start on this new journey on the final stages of our life. Shakespeare said in his powerful poem The Seven Ages of Man, from the play “As You Like It”
All the world's a stage,
And all the men and women merely players,
They have their exits and entrances,
And one man in his time plays many parts,
His acts being seven ages. At first the infant,
Mewling and puking in the nurse's arms.
Then, the whining schoolboy with his satchel
And shining morning face, creeping like snail
Unwillingly to school. And then the lover,
Sighing like furnace, with a woeful ballad
Made to his mistress' eyebrow. Then a soldier,
Full of strange oaths, and bearded like the pard,
Jealous in honour, sudden, and quick in quarrel,
Seeking the bubble reputation
Even in the cannon's mouth. And then the justice
In fair round belly, with good capon lin'd,
With eyes severe, and beard of formal cut,
Full of wise saws, and modern instances,
And so he plays his part. The sixth age shifts
Into the lean and slipper'd pantaloon,
With spectacles on nose, and pouch on side,
His youthful hose well sav'd, a world too wide,
For his shrunk shank, and his big manly voice,
Turning again towards childish treble, pipes
And whistles in his sound. Last scene of all,
That ends this strange eventful history,
Is second childishness and mere oblivion,
Sans teeth, sans eyes, sans taste, sans everything

My fellow Boomers, are of course in the Last scene of all, in second childhood and we need to plan for the end when we are sans teeth, sans eyes, sans taste, sans everything. One way to do this is to have an estate plan. When preparing a plan, always talk to a trusted advisor, or a legal expert, this step is too important to be done by yourself.

Estate planning is another word for putting one’s personal affairs in order. People do estate planning all along life’s journey, but especially when reaching the doorstep of retirement.
That is a time in life when thoughts naturally turn to leaving a legacy after one’s death.

The estate plan includes wills, powers of attorney, health care proxies, and other documents relating to end-of-life decisions. The objective is to spell out how people want to be cared for in their last days and also how they want their assets and other possessions distributed once they die. If they do not have an estate plan, the government will make decisions for them, but the outcome may not be what they or their loved ones would want.

Wills and Trusts
A good place to start is to draft a will. Dying without a will can lead to assets being distributed in unintended ways. As noted earlier, the government will step in and make decisions on behalf of the deceased in case the executor predeceases or is not available for some other reason. This may lead to family disputes, excessive legal costs, and delays in disposing of the estate.
Bookstores and Internet outlets offer do-it-yourself will kits. However, to ensure that the deceased’s wishes will be implemented as desired, it makes sense to have an attorney draw up a proper will that is witnessed and signed in a legal manner.

Part of the will-making process involves designating an executor of the estate and a backup for the executor. Many people appoint a trusted family member. This may work out if the appointed individual is capable of handling administrative/paperwork matters effectively and if the family functions well. If a qualified family member is not available, however, appointing an independent third party such as an attorney may be the best alternative.

In many instances, a will adequately covers the disposition of assets after death. But some retirees may need one or more trusts as well.

A trust is a legal document that names a person or entity—a trustee—who then manages and controls what happens to the assets. To set up a trust, it is best to consult with an experienced trust attorney who is up-to-date on the latest laws.

The basic difference between a will and a trust is that a will simply hands assets over to beneficiaries while a trust can be much more specific about managing and paying out the assets.

Trusts may also be used to:
• Establish care arrangements for minor grandchildren for whom the grandparents are legally responsible.

A living trust is a trust that a person sets up and funds while still alive.
A testamentary trust is a trust that a person—the testator—establishes in his or her will; the funding occurs at the time of the testator’s death.
• Provide oversight on spending by an adult child who has problems handling money.
• Specify bequests when the heirs may be from previous marriages.
The downside of using trusts is the time and expense involved and the need, in many instances, to hire a professional trustee. In addition, some people “overuse” trusts in the sense that they try to use the trust to “micro-manage from the grave.”

My wish for you

As you move into the next adventure in your life, I wish for you flowers and sunshine, gentle breezes and clear skies, calm seas and rainbows. 

But, perhaps most of all, I wish for you the glorious breadth of experiences you are now poised to receive, so that these tidbits are mere icing on the cake of a life that's rich in adventure

Did you ever notice?

Ever notice how when someone dreams of happiness, abundance, health, romance, or friendship, they never have to wonder if it's in their best interest? 

But when someone dreams of a specific house, employer, love interest, deadline, dollar amount, or diet fad, they often end up contradicting themselves?

Keep your "end results" general. Everything else is just a how. 

To the big picture!

How many seniors are there?

A recent report on Seniors in my home province shows some interesting numbers.

The number of older people in British Columbia has grown significantly since 1971 and will continue to grow.
• From 1971 to 2002, the number of seniors age 65 and over grew from 9 percent to 13.3 percent of the total estimated population.
• In 2031, seniors will make up an estimated 23.7 percent of the total population in British Columbia. This translates to 1,341,319
seniors in 2031, more than double the number of seniors today. 
• During the next five years, the senior population will continue to increase at a higher rate than in previous years.
• Between 2001 and 2004, the number of seniors is expected to increase by 35,125.
• Between 2004 and 2007, the number of seniors is expected to increase by 41,554.

Life expectancy has increased for both men and women in British Columbia over the past 50 years. However, it has increased slightly more for women than for men; in fact, women have consistently had a longer life expectancy than men.
• Average life expectancy at age 65 increased 5.64 years for women and 4.36 years for men between 1950 and 2001.
• In 2002, life expectancy at age 65 was 21.4 years for women and 18.2 years for men.
• Overall life expectancy for seniors at age 65 was 14.5 years in 1950 and 19.8 years in 2001

Most seniors are either married or widowed. Few seniors are single (never married), separated, or divorced. Younger seniors (age 65 to 74) are slightly more likely to be divorced than older seniors. 
As age increases, the likelihood of being widowed increases for both men and women. However, senior women are much more likely to be widowed than senior men, and widowhood may lead to social isolation.
Women
• Approximately three-quarters of women age 85 and over are widowed, compared to 26 percent of women age 65 to 74.
• 3 percent of women age 85 and older and 10 percent of women age 65 to 74 are divorced.

Men
• 36 percent of men age 85 and older are widowed compared to 78 percent of women in the same age group.
• 7 percent of men age 65 to 74 and 17 percent of men age 75 to 84 are widowed.
• 92 percent of men age 85 and older are either married or widowed.
• 5 percent of senior men age 65 to 74 and 5 percent of senior men age 75 to 84 are single (never married).