As we continue the 2010 year  and the relaunch of http://www.spectrumseniorconsultants.com, there are many issues that should be addressed for our older friends and family.  This article helps make sure your documents are accurate.  Each year we should check all of our paperwork in case there have been changes in our lives that would prompt us to make changes in our planning.

                Too common are horror stories like the following.  A woman gets a job and names a spouse as the beneficiary to a retirement account.  Over the years, the couple retires and the spouse passes away.  When it comes time for the beneficiary to receive payments from the account the children aren’t named and therefore don’t receive what could be lots of money from that account.

Has your financial advisor discussed with you the tax benefits of not naming a spouse as a beneficiary, or is that the best thing for you to do?

                There was a gentleman who named his daughter as a beneficiary.  They had a falling out, so he removed his daughter and named someone else.  Over the years, they made up.  When he passed, the daughter didn’t get any money because he did not change the document back to include his daughter.  These are heartbreaking, but common stories.

                Many people find advance planning-creating living wills, wills, and Powers of Attorney-a difficult topic to acknowledge, and therefore may not do it as it should be done.  When there is no planning in place, there actually is a plan.   According to Attorney James Bohorad, of Lipkin, Marshall, Bohorad, and Thornburg, P.C. in Pottsville, PA, assets will be distributed according to the state intestate laws at death when an individual does not have a will.  

If a Power of Attorney isn’t named, and a person becomes incapacitated, the courts may need to declare a person unable to make decisions, take away their rights, and appoint a legal guardian.

                These documents are necessary.  A living will expresses your healthcare wishes should you be in a permanent vegetative state.  A will explains what to do with your estate when you pass.  And a Power of Attorney appoints someone you trust to handle both your financial and healthcare affairs if you are unable to, preventing the need for a court to appoint a guardian for you. 

                When should you create these documents if you don’t have them?  Too often, a crisis happens, and then people get their affairs in order.  But frequently, when the crisis happens, too many other issues are going on or the person is no longer able to do that type of planning.  The time to do it, according to Bohorad, is before the crisis occurs.  It is never too soon.  Bohorad added  it’s important to take the time and put the thought into doing these vital documents correctly.

                How often should you review these documents?  Some people say monthly, but a minimum of every few years, and especially if something has changed.  Again, you may have someone listed as Power of Attorney who has moved, passed away, or for some reason is no longer part of your life.  Maybe there were births or deaths in your family that would precipitate changes to your will and other legal documents.

                Because of the complexity of the various laws involved, it is very important to get the right professionals involved.  Who are these people?  You want to have a good attorney, financial advisor, and tax advisor.   Also, talk to your primary care physician about health care needs.

                Frequently people feel that they don’t have a lot of assets and this type of planning isn’t necessary.  But these professionals will help you find ways to save money and provide support for your family.  This planning is still preferred over having the government handle your assets and make your decisions.

                Of course you need to make sure the professionals you hire to work with you care about your best interest and understand your situation.  Don’t hesitate to ask for references and talk to these people before you make decisions.  If they are credible, they will be glad that you are doing your homework on them.

                So you have a Living Will, Power of Attorney, and a Will, and you know they are updated.  Who should have a copy of it?  Your health care providers should have a copy of your living will (Advanced Directives)-where healthcare issues are addressed.  The person or people named should also have a copy.  Your financial institution needs a copy of documents dealing with financial concerns.  Sometimes an attorney keeps an original as well.

                Also, you need all of your important documents.  Your Power of Attorney should be aware of where they are and have access to them, according to Bororad.  The Executor should also know where to look for the will.

                Incidentally, you should, if possible, have one or more successors named on all of your documents should something happen to the person you have named.   For example, many people name their spouse as Power of Attorney.  But what happens if the spouse is unable to fulfill that responsibility due to their own health concerns?  Or maybe the child named moved out of the area.  A back up person will be able to help in this situation.

                Many times, older married couples have each other as Power of Attorney, but they are overwhelmed with the many issues and challenges they face.  Sometimes an outside person to guide them is the best solution.

                Occasionally, people will find themselves in a situation where they have no one to appoint as Power of Attorney or Executor.  If they have a certain amount of assets, some financial institutions may be able to help.

                Good hearted neighbors, friends, or distant relatives sometimes step in.  But sometimes they get overwhelmed as well. 

                Many professionals in different areas will go the extra mile for seniors.  But those professionals need to be concerned about creating a conflict of interest if they go too far.

                A lot of churches and senior organizations have resources.  If you need some assistance in any area, please contact the various agencies in your community to learn what support is available for you.

                The next installment of The Senior Moment will discuss what is available to make the home safer and healthier for your senior friend or relative. 

                This article was written by Kimberly S. Noel, BA, President and Care Manager of Spectrum Senior Consultants, Inc.  Spectrum was created to provide care management, information, resources, and support to seniors and their caregivers.  Spectrum also provides Power of Attorney services.  They work with Good News Consulting, Inc.  to provide Professional Guardianship services.  The Good News team consists of nurses, therapeutic recreation specialists, certified care managers, social workers, former facility administrators and other long term care professionals.  The guardianship program and services are overseen by a National Certified Guardian (NCG).  GOOD NEWS CONSULTING, Inc. is a member of the National Guardianship Association. 

Spectrum has an advisory committee consisting of attorneys, financial professionals, and health and personal care providers.

For more information or an appointment, call (570) 668-0368 or toll free 1 (866) 202-1424 pin 1608, or email spectrumpres@yahoo.com.