If families understand the financial and legal issues involved in planning for incapacity, they may protect the parents’ assets from mismanagement, fraud, or exploitation by others. Although it will not reduce the emotional pain that accompanies disability, planning ahead can:
* help avoid decision making in times of crisis and make decisions easier in difficult times;
* reduce emotional and financial upheaval later on;
* ensure that your parents’ lifestyle, personal philosophies, and choices are known before the time comes when they are not able to participate in making decisions;
* increase the options available to older persons and their families;
* decrease the possibility that the family will have to engage in more intrusive and restrictive activities, such as taking court action to seek a guardianship or conservatorship;
* reduce disagreements among siblings about “what Mom or Dad wants” and how assets should be handled.
Planning ahead does not prevent all problems, but it does provide parents with more options and enables their families to act more effectively.
For additional information, visit Talking with Aging Parents about Finances.
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