Alzheimer’s, Dementia and Other Brain Diseases Require Special Estate Planning Steps
Financial and Estate Planning for Those with Brain Diseases
“Covid-19 or Coronavirus has created health worries and fear for everyone. For those with underlying health issues, which include multiple sclerosis, Parkinson’s disease, Alzheimer’s disease, or other brain diseases, those concerns are even more pronounced.”
There are certain steps that can be taken by individuals, loved ones, and family members to make this challenging time safer and smarter, advises an article “Financial And Estate Planning Steps To Take Now: Special Considerations For Those With Brain Disease” from Forbes.
The Importance of Tailoring Estate Plans to Reflect Individual Experiences of Brain Diseases
Anyone living with a neurologic condition needs to be sure their planning reflects not only their condition but their personal experience of the condition. The variability of each person’s experience of a brain disease, from symptoms and severity to the progression rate and future prognosis to the possibility of any recovery, affects how they need to plan.
For an Alzheimer’s patient, in the early stages, there may be no problems in signing legal documents and putting legal safeguards in place to protect finances. Most people are not aware that the degree of competency to sign legal documents varies, depending upon the complexity of the documents to be signed and the circumstances.
A relatively low level of competency is required to sign a will. This is known as “testamentary capacity.” A higher level of competency is required to sign something like a revocable trust, investment policy statement, etc. Therefore, a person who may be legally able to sign a will may not have the legal capacity to sign other documents. Alzheimer’s patients need to get their entire estate plan in order, as soon as a diagnosis is received.
Safeguards and Planning Strategies for Alzheimer's Patients
Strategies for Managing Finances and Conducting Business from Home for Those with Peripheral Neuropathy
Strategies for Dealing with Facial Expression and Handwriting Changes in Parkinson's Disease
It is important to have a Power of Attorney (POA) that is effective immediately or a revocable living trust with a co-trustee. In this way, you do not have to leave home to conduct your business.
Parkinson’s disease may not be well understood by professional advisors. You’ll need to explain that your facial expression—Parkinsonian masked face—does not mean that you are not responding to a conversation. They need to know that your handwriting may change, becoming small and cramped. This can result in a bank or other financial institution refusing to accept your signature on documents. Your attorney can prepare a document that confirms you are living with Parkinson’s disease and that micrographia is one of your symptoms. The document should include three or four different signatures to reflect the variations. Have each signature witnessed and notarized.
Preparing an Emergency Financial and Legal Roadmap for Those with Multiple Sclerosis
People living with MS (multiple sclerosis) face the possibility of an exacerbation that could leave them incapacitated at any time. A revocable trust to coordinate financial management, with trusted individuals as co-trustees should be in place.
The Importance of Updating or Creating an Estate Plan
For people with these and other brain illnesses, an emergency financial and legal roadmap needs to be prepared. It should include monthly recurring bills, and non-recurring bills like life insurance, property taxes, etc. Contact information for key advisors, your estate planning attorney, CPA, financial advisor, banker, insurance agent, etc., needs to be shared.
Your estate plan should be updated if you haven’t reviewed it in three or four years. If you don’t have an estate plan in place, now is the time to have one created.