Parents spend their lives taking care of their children, but at some point in life, that responsibility tends to shift. As our parents grow older, they begin to rely on their children for support. While no one likes to talk about health concerns or death, this uncomfortable conversation is necessary to understand our aging parents’ plan for the future, so we can ensure they are cared for in the way they wish.
Estate planning does just that — it ensures they are cared for as they intend and their wishes are honored. If this responsibility has fallen on your shoulders and you’re asking, “What legal documents do I need for my elderly parents?” we’ve created a breakdown of the essential documents needed and what they entail.
Planning for the Medical Unknowns of Life
These documents go beyond taking care of your parents; they also help prevent family disputes, court intervention, and a loss of control over personal affairs. There are four essential documents that help protect your parents, reduce stress, and ensure their care is fully covered. We understand that taking care of your aging parents is already a big responsibility, so we’ve put together this simple guide.
Financial Power of Attorney/Property Power of Attorney
This legal document allows your parents to designate someone as their agent to handle their financial matters if they are unable to do so themselves.
If your parents become too ill or incapacitated to manage their own finances, this document allows the agent to step in and handle tasks such as paying the mortgage, covering medical bills, and managing retirement accounts.
Health Care Power of Attorney/Healthcare Proxy
A Health Care Power of Attorney allows your parents to choose someone who will make healthcare decisions for them if they can’t speak for themselves. This document can help pre-plan for the worst-case scenario and ensure their medical wishes are honored.
Without a Health Care Power of Attorney, the court may need to intervene in a Guardianship proceeding, potentially making decisions that go against your aging parent’s wishes. This situation could also lead to disagreements among family members, as they may have differing opinions on which medical actions to take.
Living Will & Advance Directive
A Living Will, also known as an Advanced Directive, states what kind of medical treatment your parents would or wouldn’t want if they become incapacitated or unable to express their wishes.
This document can remove the responsibility from the family members having to make tough decisions. Often in a Living Will, one can state if they would prefer to be kept on life support or have feeding tubes in the case of end-of-life care.
For Oregon residents, the statutory Oregon Advance Directive form actually combines both the Health Care Power of Attorney and Living Will into one statutory form. This allows your parents to make their own health care wishes known and indicate who has the authority to speak on their behalf if they are unable to do so themselves.
Last Will and Testament
This is the document where your parents can specify how they want their assets, including property, belongings, and money, to be distributed after their passing. They can choose the beneficiaries, appoint guardians for minors or individuals with special needs, and select an executor to manage the distribution of assets.
Without a clear Last Will or Testament, the Probate Court could intervene and make decisions on your parent’s behalf. This can delay the inheritance process, which some family members may rely on for their well-being, and it could also result in assets being distributed in a way that goes against your parents’ wishes.
Additional Considerations and Next Steps
The first step to having an effective plan is having an initial conversation with your elderly loved ones. It’s never too early to start the conversation. Many people make the mistake of waiting until tragedy strikes, and by then, it’s often too late for parents to complete the documents or clearly state their wishes.
When approaching the conversation, it’s important to do so with care, empathy, and basic understanding of the topic so you can address the essential questions and help secure their future.
Once you’ve had the initial conversation, reach out to an estate planning attorney. They can guide you through the process, ensure documents are legally valid, and tailor strategies to specific state laws for any unique family circumstances.
When you have these legal documents in hand, store the original copies in a secure and accessible location. Then, create copies for agents, executors, family members, and keep extra copies for yourself.
Getting Started
Estate planning can often feel overwhelming on top of all your day-to-day responsibilities. If you’re just getting started, take a look at our Estate Planning Primer, a straightforward guide designed to help you make informed choices with clarity and ease.
Caring for your aging parents and planning for the future is a big responsibility, but you don’t have to do it alone. Reach out to our team today to ensure your elderly loved ones are taken care of no matter what the future holds.
Give us a call at (503) 292-8990 or fill out the form below to get started today.
