Parents spend much of their lives taking care of their children, but as they get older, that responsibility can begin to shift. Adult children may find themselves helping with healthcare appointments, finances, housing decisions, and other parts of day-to-day life.
That often leads to an important question: What legal documents do I need for my elderly parents?
The right documents can give your parents more control over their own future while making it easier for the people they trust to step in if help is ever needed.
Here are some of the most important legal documents for elderly parents to consider.
Financial Power of Attorney
A financial Power of Attorney allows your parent to name someone they trust to handle certain financial matters on their behalf.
Depending on how the document is structured, the person they appoint may be able to help with responsibilities such as:
- Paying bills
- Managing bank and investment accounts
- Handling real estate matters
- Working with financial institutions
- Managing certain business or tax matters
A Power of Attorney for an elderly parent can become especially important if illness or incapacity makes it difficult for them to manage their own finances.
Without the appropriate legal authority in place, family members may not simply be able to take over because they are a spouse, son, or daughter. In some circumstances, a court proceeding may become necessary before someone has the authority to manage another person’s affairs.
Putting a plan in place ahead of time allows your parent to decide who they trust with that responsibility.
Health Care Representative and Advance Directive
Your parents should also have a plan for what happens if they become unable to communicate their own healthcare decisions.
An Advance Directive allows a person to document healthcare wishes and designate someone to make healthcare decisions on their behalf when appropriate.
For Oregon residents, Oregon’s Advance Directive form addresses both healthcare instructions and the appointment of a healthcare representative.
Having these decisions documented can give medical providers and family members clearer guidance and may help avoid confusion about who should speak for your parent.
Living Will and End-of-Life Wishes
People commonly use the term “living will” to describe written instructions about the medical treatment someone would or would not want if they were unable to communicate.
These instructions may address issues such as life-sustaining treatment and other end-of-life care preferences.
In Oregon, these types of healthcare instructions can be addressed through an Advance Directive.
Talking through these wishes can be just as important as completing the document itself. The person your parent chooses to speak for them should understand what matters to them and feel comfortable carrying out those wishes.
HIPAA Authorization
A HIPAA authorization serves a different purpose from an Advance Directive or healthcare representative designation.
The Health Insurance Portability and Accountability Act, commonly known as HIPAA, protects the privacy of an individual’s medical information.
An appropriate authorization can allow designated individuals to receive certain medical information from healthcare providers.
This can be particularly helpful when an adult child is helping coordinate a parent’s appointments, treatment, medical records, or other aspects of their care.
Last Will and Testament
A Last Will and Testament explains how a person wants certain property and assets distributed after death and identifies the person responsible for administering the estate.
Without a valid will, assets that pass through probate are generally distributed according to state intestacy laws rather than according to instructions your parent might have preferred.
A will is therefore an important piece of an estate plan, but it is not necessarily the entire plan.
Depending on your parents’ circumstances, an estate planning attorney may also discuss trusts, beneficiary designations, property ownership, tax considerations, and other planning strategies.
Do My Elderly Parents Need a Trust?
Not every family needs the same estate planning tools.
For some parents, a will and incapacity-planning documents may cover many of their needs. For others, a trust may be useful for managing assets, planning for incapacity, avoiding or simplifying probate, or addressing other family and financial circumstances.
Whether a trust makes sense depends on factors such as the assets your parents own, how those assets are titled, their family situation, and their goals.
This is one reason estate planning should be tailored to the individual rather than treated as a standard set of forms.
What Happens If My Parents Don’t Have These Documents?
Problems often arise when families wait until a parent is already seriously ill or unable to make decisions.
Without the appropriate documents, family members may have difficulty managing finances, receiving healthcare information, making certain medical decisions, or carrying out a parent’s wishes.
In some situations, court involvement may be necessary.
Planning earlier gives your parents the opportunity to make these decisions for themselves, choose the people they trust, and communicate what they want.
Where Should My Parents Keep Their Legal Documents?
Once the documents are completed, make sure they can actually be located when they are needed.
Original estate planning documents should be kept somewhere secure but accessible. The appropriate agents, healthcare representatives, executors, trustees, or other trusted individuals should know where relevant documents are stored and how to access them.
Your parents should also review their estate plan periodically, particularly after major changes involving health, finances, property, marriage, divorce, deaths in the family, or other significant life events.
What Else Should I Prepare for With Aging Parents?
Legal documents are only one part of preparing for an aging parent’s future.
You may also need to think about healthcare information, insurance, financial accounts, beneficiary designations, long-term care preferences, important contacts, and where critical information is stored.
Our aging parents checklist walks through those practical next steps.
Getting Started
The best time to talk about these issues is before there is an emergency.
Start by asking your parents what documents they already have, when those documents were last reviewed, and whether their wishes or circumstances have changed.
An estate planning attorney can then help determine which documents are appropriate, make sure they comply with applicable state law, and identify any gaps in the existing plan.
If you’re just beginning the process, you can also take a look at our Estate Planning Primer for a straightforward introduction to the planning process.
Caring for aging parents is a big responsibility, but having the right plan in place can make future decisions much easier for everyone involved.
Give Caress Law, PC a call at (503) 292-8990 or fill out the form below to get started.
