What if there’s a period in your life in which you can’t keep up with financial management? Most people hope this never happens to them, and if it does, their loved ones are stuck trying to get the authority through the court. That might only make a difficult situation worse.
Targeting an ideal retirement age brings around many questions and concerns about the most appropriate way to protect yourself and get to that endpoint. Many aspects of retirement and financial planning can be overlooked, especially as it relates to how these may connect to your estate plan. Lining someone up known as a fiduciary or agent is a valuable process because this is someone who can take control of your finances if you become incapacitated.
Many people recognize that incapacitation can occur as a result of things such as a diagnosis of dementia, but it can also occur for many other reasons such as an overall decline in cognitive ability, or while someone is recovering from an accident or in a coma. Accidents and illnesses can happen to anyone at any time, meaning that it is critical in your older age to plan for the possibility of retirement and financial planning. There are major things to keep in mind when it comes to choosing a financial agent.
A recent study published by Boston College’s Center for Retirement Research finds that by handing over your money too soon, you could find yourself a perfectly competent individual with no control over your life. Handing control over too late may mean that mistakes are made that could harm your financial future. Communicate with a Pasadena, CA estate plan lawyer to discuss the creation of a financial power of attorney that allows you to name this other person.