Guardianship may enter the life of a senior citizen when they are found to be lacking the ability, or capacity as it is known in legal terminology, to manage their own affairs. A court may be needed to intervene and appoint a Guardian to serve as a substitute decision maker for a person.

There are two types of guardians that may be appointed by a court to make decisions:

• A guardian of the person who has the authority to make personal decisions for the protected person, including decisions regarding health care and living situations; and
• A guardian of the estate who has the authority to manage the protected person’s money and other property.

One person may be appointed as both the guardian of the person and the guardian of the estate.

A guardianship attorney is able to assist in many aspects of the guardianship process, which is a paperwork intensive, court process. Their duties can include:

• Initiating hearings to determine competence;
• Setting up trusts for an adult family member with special needs;
• Annual reporting and accounting of assets and expenses; and
• Being the guardian of the protected person.

Guardianships are often the last choice in helping a loved one who may be impaired due to age or illness. In fact, many estate planning tools are set up to avoid the need for guardianship proceedings. But if the time does come for this intervention, a guardianship attorney helps guide families through protective proceedings.

The Hammond Law Group is a member of the American Academy of Estate Planning Attorneys.

A guardian is a surrogate decision-maker appointed by the court to make either personal and/or financial decisions for a minor or for an adult with mental or physical disabilities. Guardianship may enter the lives of the elderly or infirmed if they lose the capacity to handle their own affairs. But guardianship is often the last resort, as it is taking away the personal rights of an individual, as well as allowing a personal issue to be aired within the public record of a court proceeding.

Rather than resorting to a guardianship, less intrusive alternatives should be considered before it becomes an issue or in lieu of a guardianship proceeding.

• Durable Power of Attorney: A durable power-of-attorney is in force even if a person becomes incapacitated. A durable power-of-attorney lets a person choose who will act on their behalf if he or she can no longer handle either finanical or personal affairs, therefore, the ‘attorney-in’fact’ that is designated must be someone who is totally trustworthy.
• Advance Medical Directive – An advance medical directive allows a person to select another person who will act as their agent in making health care decisions when the individual cannot make their own decisions.
• Living Trust – A trust is a powerful estate planning tool. Property is transferred into the ownership of the trust and put in the control of a trustee for the benefit of the individual. Although the trustee controls the funds, the trust document dictates how the money is to be handled and for whose benefit it should be spent. If a person’s funds are in a trust and the trustee is reliably paying the person’s bills, there may be no need for a financial guardian.

Having an estate plan in place can help avoid a guardianship proceeding should you or a loved one need assistance later in life, but should this become necessary, a guardianship attorney can assist with the process.

The Hammond Law Group is a member of the American Academy of Estate Planning Attorneys.

Just because you haven’t reached retirement age doesn’t mean it’s too early to begin planning your estate. Your estate plan will help resolve your debts and distribute your assets upon your death. And though we all hope to live a long and happy life, we also know that the future is not guaranteed. Planning your estate now ensures that your estate and your loved ones are protected after you’re gone.

Last Will and Testament

The best tool to begin planning your estate is a Last Will and Testament. This is a basic estate planning document that allows you to name heirs for all of your belongings and stipulate an executor to settle your estate and pay your final debts.

Guardianship

If you have minor children, it is vital to name a guardian in case both you and your spouse should pass away. You can include your guardian plan in your Last Will and Testament or in a Living Trust. A guardian plan ensures your children are looked after by a skilled and willing caregiver without enduring a lengthy court custody battle. Creating a guardian plan will give you the peace of mind to know your children are being cared for. And here’s an extra tip: Don’t forget to name a back-up guardian in case anything should happen to your first choice.

Disability Plan

If you saw the news reports on Terry Schiavo, then you can understand how important it is to create a mental disability plan. Such a plan allows you to name someone to speak for you in the event that you are no longer able to make your own medical or financial decisions. With a disability plan you can name someone to handle your financial affairs, made medical decisions on your behalf and even let your healthcare providers know how you want to be treated in certain end-of-life situations.

Life Insurance

If you pass away, who will help your spouse pay the bills? How will your children go to college? Life insurance is a financial safety net for family members who depend upon you as a source of income. It is best to purchase a life insurance policy in your twenty’s when your premiums will be much lower, and you will have a better chance of being approved.

To learn more about building your own estate plan, contact our office today.

The Hammond Law Group is a member of the American Academy of Estate Planning Attorneys.

If you have children under the age of 18, it’s vital to have a Will that names a guardian just in case something happens to you. This avoids the potentially costly and lengthy process of requiring various family members to go to court and have the court try to determine the best guardian for your children.

In selecting a guardian, it’s important to understand exactly what a guardian does. A guardian enjoys the same legal authority and duties as a parent. Food, clothing, shelter, safety, education and medical care of the children are the responsibility of the guardian until they reach the age of 18.

Guardians educate children in the differences between right and wrong, help them with their homework, settle disputes between siblings and friends and later down the road, will help the children choose a college, help them move out and may even walk them down the aisle.

The probate court generally stays out of the guardian’s way and requires only an annual status report of how the children are coping with their new situation, whether or not they’ve changed addresses and any new changes that the court should know about. There are some things, however, that the guardian must ask permission of the court before doing with the children. If the guardian wished to relocate out of state, for example, they would first need to seek the court’s approval. A family member could also ask the guardianship to be terminated if they thought the guardian was not properly taking care of the child.

Guardians can also receive financial assistance to help support the child. If you set up a trust with your children as beneficiaries, however, their financial future can be secure. You may name the guardian as the trustee of the trust, or designate a separate person to serve as conservator and manage the children’s assets.

You can then turn over the trust funds to the child when they reach age 18, or set milestone ages or education goals throughout their lifetime for them to receive set amounts from the trusts.

An estate planning attorney can help you set up the proper financial accounts to ensure your children’s financial futures and help your named guardian provide the necessary care and nurturing of your child after you pass on.

The Hammond Law Group is a member of the American Academy of Estate Planning Attorneys.

A Revocable Living Trust is one of the most efficient ways of avoiding Conservatorship. If you are in a debilitating accident, suffer a stroke, develop Alzheimer’s or other dementia otherwise become incapacited, a Successor Trustee of your choosing would manage the assets instead of a Court-appointed conservator. As many of you know, when my mother developed early-onset Alzheimer’s I had to hire an attorney, go to court, ask to have her publicly declared incompetent, and then follow the court’s investment instructions and file annual accountings and reports with the court. This court oversight continues for the rest of your life. The Revocable Living Trust avoids all of the legal hassle, and allows someone of your choosing to continue to manage your affairs according to your instructions, rather than the court’s.

How to Set Up a Revocable Living Trust

A Trust requires three parties – Grantor (also known as settlor or trustor), Trustees and Beneficiaries. Initially, all three parties are the same person – you.

When you set up the Trust, you continue to handle all your assets in the same manner as you normally would – they are just in the name of the Trust instead of you as an individual.

In the event that you become incapacitated, your Successor Trustee would step in and manage the assets for you. Since all the assets are funded into the Trust, there is nothing in your name as an individual and nothing for the court to address.

You will still of course, need to include Advanced Medical Directives in your estate plan to ensure that all your wishes regarding medical care and treatment are honored.

The Hammond Law Group is a member of the American Academy of Estate Planning Attorneys.