Volume 2, Issue 9

Estate planning is often viewed as something needed only for when we pass away. But the reality is that many of us—particularly after the age of 65—may face a period of disability or infirmity before that day comes. In fact, federal statistics show that if you've turned 65, you have about a 70% chance of needing long-term care services at some point in your life.

That means estate planning isn't just about passing assets to your heirs—it's about protecting yourself, your health, and your finances while you are still living.

Why Estate Planning is About More than Money

Disability, for purposes of planning, means you may need help. It may be financial assistance—someone to access accounts, pay bills, or communicate with your financial advisor—or it may involve making critical medical decisions when you cannot.

This is why key legal documents like a revocable living trust, a financial power of attorney, and health care power of attorneys are essential. These documents work cooperatively to protect you.

Trusts vs. Financial Powers of Attorney

While trusts are often the preferred tool for smooth financial transitions, a well-prepared financial power of attorney is still critical—even if you have a trust in place. If you do not use a revocable living trust and rely solely on a will, then the financial power of attorney becomes even more vital, though it can come with limitations. Specifically, a financial power of attorney is a document that gives access to assets. But, it does not require continuous investing and provides less guidance and protection than a well-designed trust.

No matter which approach you choose, remember: Some planning is always better than no planning.

Statistics Speak Volumes

- 70% – Chance of needing long-term care if you are 65 or older.

- 80% – Of adults 72 or older say they have some type of estate plan in place, but it typically is extremely outdated and templated.

- 41% – Of millennials report having some type of will or trust created—meaning a majority still do not.

Yet across all ages, the most common reason for not having a plan is simple: procrastination.

Key Medical & Health-Related Documents

Financial tools are only half the equation. When facing disability, certain health care documents are essential to ensure your wishes are followed. These include:

1. Health Care Power of Attorney – Allows a trusted individual to make medical decisions on your behalf when you cannot.

2. Mental Health Power of Attorney – Especially important in Washington State, this document provides authority for temporary care in the event of a mental or emotional health crisis.

3. HIPAA Authorization – Ensures designated individuals can access medical records immediately—critical for timely decision-making.

4. End-of-Life Directives (Living Will) – Spells out your wishes regarding life support and care when recovery is no longer possible.

Avoiding Common Pitfalls

Many generic or low-cost plans combine documents that should be separate, or they fail to comply with state-specific statutes. Properly drafted documents protect your wishes, reduce stress for loved ones, and avoid costly delays.

Who Needs Estate Planning?

- Young adults (18+) – Parents may need authority for medical decisions.

- Families with children – Guardianship designations are critical.

- Adults of all ages – Disability or medical emergencies can happen at anytime.

Next Steps: Protecting Yourself & Your Family

Procrastination is the biggest barrier to being prepared. Don't wait until a crisis makes planning more complicated. The peace of mind that comes from having your estate plan complete is worth the effort.

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Disclaimer: This newsletter is for general educational purposes only and does not constitute legal advice. For personal guidance, please consult an estate planning attorney.