Submitted by Bears on Tue, 10/11/2011 - 09:21
My wife and I are caring for her mother who has Alzheimer's disease in it's early stages. She is still very much in touch with reality and only has "periods" during the average day when she seems confused. So I don't think, at this point, competency is an issue if she needs to execute new estate planning documents. My question is whether there is anything special she should do to update her estate plan or any special estate planning documents that might be useful for her. She has some property and assets but is more concerned with making sure we will continue to have all necessary authority to assist her with her care. My wife is her Healthcare Agent under her Healthcare Proxy. Thanks for your help.
Estate planning for Alzheimer's
Whenever a person has a major change in their life, it's a good idea to review her estate plan and update it to accommodate that change, if necessary. You should encourage your mother-in-law to talk to an experienced estate planning attorney as soon as possible. To your question, I don't believe there are any special estate planning documents for your mother-in-law's situation, just the usual documents that people should use in their planning: will, trust, power of attorney, healthcare proxy, etc. Depending on your mother-in-law's current estate plan, those documents will be created or amended, after the review of her plan, to accommodate her special needs and unique circumstances.
She is off to a good start with the healthcare proxy. You say her health care is a major concern for her, and that document will allow your wife to fulfill her mother's wishes with respect to that care. Similarly, a durable power of attorney will allow your wife, or some other person nominated by your mother-in-law to make decisions regarding other aspects of her life, such as financial decisions. A durable power of attorney remains effective even after the principal loses her mental capacity to make her own decisions. Your mother-in-law can decide how much authority she wishes to grant to her agent (sometimes called an attorney in fact), and can allow her agent to do such things as pay bills or withdraw and deposit funds, important tasks for a person dealing with medical issues.
Assuming your mother-in-law is competent to execute a power of attorney, that document, along with the healthcare proxy, should allow her appointed agents to take care of her needs while she is alive and avoid the need to appoint a guardian or conservator. (Interestingly, Massachusetts residents can use a power of attorney to nominate their guardian or conservator, if such an appointment becomes necessary. Avoiding the need for a guardianship is a very good thing: The process can be costly, time consuming, and unpleasant, especially if your wife has relatives who raise objections. Hope that helps.
Medicaid Planning
Hi Bears. In additiona to a will, health carae proxy, and power of attorney, you might want to consider planning for Medicaid (MassHealth) eligibility. If your mother needs to go into a long-term care facility, MassHealth will only cover her costs if she meets strict asset guidelines--she can currently only have $2,000 in her name.
Best, Matthew Karr, Esq.