2022-2023 Senior Housing Options

W ILLS , T RUSTS ANd d IMINISHEd f INANcIAL c APAcITY

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increase as they age, which puts them in a perilous posi tion. As seniors begin to experience difficulty manag ing their money, they don’t realize they’re making poor choices, which makes them easy targets for financial exploitation, fraud, and abuse. Article Submitted by Nicole Robbins, Managing Partner, Robbins Law Group LLC. For more information on these or other Estate Planning Topics, please call 414-209-5390.

hat’s the difference Between a will and a trust? Both are useful estate plan ning tools that have different purposes, and both can work together to create a complete estate plan. Often only a will is created which is only effective after death and leaves the family in court and conflict. takes effect as soon as it’s signed and your assets are transferred into the name of the trust, known as “fund ing” the trust. To this end, a will directs who will receive your assets upon your death, while a trust specifies how your assets will be distrib uted before your death, at your death, or at a specified time after death. This is what keeps your family out of court in the event of your incapacity or death. furthermore, because a will only goes into effect when you die, it offers no protec tion if you become incapaci tated and are no longer able to make decisions about your financial, legal, and healthcare needs. If you do become incapacitated, your family will have to petition the court to appoint a con servator or guardian to han dle your affairs, which can A will only will go into effect when you die, while a trust

be costly, time-consuming, and stressful.

why is diminished Financial Capacity dangerous?

The National Institute on Aging estimates that near ly half of all Americans will develop some form of dementia, such as Alzheimer’s disease, dur ing their lifetime. And while the cognitive decline brought on by dementia affects a variety of different mental functions, one of the first mental abilities to go is one’s “financial capacity.” financial capacity refers to the ability to manage money and make wise financial decisions. cognitive decline brought on by dementia often develops slowly over many years, so a dimin ished financial capacity fre quently goes unnoticed— often until it’s too late. Moreover, studies have shown that seniors’ confi dence in their money-man agement skills can actually

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