Individuals who are the most savvy with the finances know that it is best to create their estate plan while at their sharpest mentally. They know they cannot wait until they have dulled. Many people, however, do not like the idea of addressing their potential incapacity or death, and so they put it off. Unfortunately, this approach not only does not fix anything, but it actually makes things worse. Fortunately, the lack of an estate plan that addresses possible cognitive impairment is a problem that is easy to fix.
Expect the Best, but Plan for the Worst
As many people know, the loss of mental capacity is a real risk that many face, and that risk increases with age. Of course, we never know if that will happen, smart estate planning will address that possibility.
Studies have shown that because of the baby boomer generation, the cases of Alzheimer’s are expected to spike from the current 5.1 million to 13.2 million as soon as 2050. These numbers are still incomplete, as Alzheimer’s is just one of several diseases that impact our cognitive abilities. About 10 percent of Americans over 70 experience cognitive impairment on some level.
Diseases like these are worth planning for in your estate plan. And fortunately, you can plan for this, and the solutions are easy to create and adopt. Not planning for these types of diseases is a mistake that you can easily avoid.
You Can Plan for Possible Cognitive Impairment
If you develop a trust, you can put disability provisions into your trust, directing how you want your trust property to be used to provide for you if something should happen. Additionally, your estate planning attorney should connect you with a financial professional who can help you purchase long-term care insurance and other financial options that are appropriate for your situation and needs.
Many people choose to not do this planning, but not doing this planning often proves to be more costly and time-consuming than proactive planning, and it always causes unnecessary heartache for loved ones. Also, creating and amending an estate plan requires that you have a certain level of mental ability, and if you wait, it may be too late.
Planning for possible loss of cognitive impairment does not have to be a headache. If anything, it avoids it. If you proactively do the planning now, you can actually be helping and blessing your loved ones if you ever experience a mental disease. Contact The Rains Law Firm or schedule a complimentary initial meeting. to begin to factor the possibility of cognitive impairment into your estate plan.