Future Elderly Boom Makes Estate Planning a Necessity Now

By the time 2050 rolls around, a little more than three decades away, it’s estimated that one out of every five Americans will be 65 or older, and 85 or older will be the demographic with the fastest growth in the nation.

As we find more cures or effective treatments for life-threatening diseases, people will live longer, fuller lives. That’s the good news.

The challenges, in part, will stem from the fact that planning for late-in-life and end-of-life situations will change significantly. As the elderly demographic grows, so will cases of financial abuse and fraud. Laws regarding inheritance and end-of-life care will change and require adaptation. Simply having a power of attorney likely won’t be enough to deal with the complex estate planning and protection scenarios that will arise in the future.

With three million more baby boomers entering retirement each year, it may seem odd to say that their children’s generation should be even more focused on putting estate planning documents in order right now. Due to the outlook for the future, that’s just sound advice.

You can help protect your long-term financial future, and help protect your parents from abuse and fraud in the near term, by making some important decisions now. Here are some valuable tips to keep in mind as you think about completing estate planning while you’re still in your 40s and 50s.

Some Contingencies

One big problem that people often run into when they complete estate planning earlier in life is simply selecting a spouse as the sole agent to act in case of incapacity. It makes sense when both wife and husband are young and healthy. But, too often, when the time comes for a care plan to be put into effect years down the road, the elderly spouse is not in a position to take on responsibilities.

Naming a trusted, younger third party, in addition to your spouse, to handle care and be responsible for paying bills is a wise choice. Accounting for this contingency in legal documents is one of the best ways to ensure that your wishes are followed under a wide range of scenarios.

Tips for Naming a Younger Agent

If you are without capable children to select, it may be a challenge to identify someone to act as a reliable agent for your estate. The natural instinct is to look at relatives because they usually can offer a combination of geographic proximity and personal history. In cases where there is no ideal relative or acquaintance, a trusted accountant or legal professional is a good backup option.

Don’t Delay Your Estate Planning: Call Cohen & Burnett Today

Now is the time to secure your financial future. Please visit our homepage to learn more about the estate planning, legal planning, tax preparation, and tax strategy services from Cohen & Burnett.

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