08-14-2006, 02:45 AM
I don't do living trusts, and know little about them, but I have quite a bit of experience with the other issues raised, since I now practice elder law. There really are two separate questions, health care related and financially related.
For the health care issues, your parents should execute what is called an advance directive or durable power of attorney for health care (or maybe a living will) in your state. There are two aspects to an advance directive, the appointment of an agent to make medical decisions for you, and any medical instructions or preferences you may have. Your state's forms should be available online, and this should be pretty straightforward for most to do on their own.
The financial issues are much more complicated, particularly if you are thinking of a living trust, or a will, or avoidance of probate, and any tax implications. However, given your parents health status, the single most important consideration is the possibility that either of them will need nursing home level care (which can be provided in a nursing home, community or residential care home, or in their own home in many states) in the next 5 years. Nursing home level care can run 6000 a month or more and can continue for months or years (the average stay is a little over 2 years), so the cost is very high, and most need to go onto medicaid at some point. Medicaid law changed dramatically in Feb 2006 for the worst. Planning for possible long term care medicaid outweighs any other consideration at this point, so you need to have them consult with an attorney about that issue, as well as all the rest. A general or financial power of attorney would also be a good idea for them to do.
For the health care issues, your parents should execute what is called an advance directive or durable power of attorney for health care (or maybe a living will) in your state. There are two aspects to an advance directive, the appointment of an agent to make medical decisions for you, and any medical instructions or preferences you may have. Your state's forms should be available online, and this should be pretty straightforward for most to do on their own.
The financial issues are much more complicated, particularly if you are thinking of a living trust, or a will, or avoidance of probate, and any tax implications. However, given your parents health status, the single most important consideration is the possibility that either of them will need nursing home level care (which can be provided in a nursing home, community or residential care home, or in their own home in many states) in the next 5 years. Nursing home level care can run 6000 a month or more and can continue for months or years (the average stay is a little over 2 years), so the cost is very high, and most need to go onto medicaid at some point. Medicaid law changed dramatically in Feb 2006 for the worst. Planning for possible long term care medicaid outweighs any other consideration at this point, so you need to have them consult with an attorney about that issue, as well as all the rest. A general or financial power of attorney would also be a good idea for them to do.