The years closer to retirement bring with it a sense of accomplishment. For a lot of senior citizens, it is a time to unwind and enjoy the fruits of their labor. It is an ideal time for them to think about their legacy and get a handle on their assets – a responsibility that can be effectively addressed by making a Will.
For the uninitiated, a Will is a legal document that outlines a person’s wishes regarding the distribution of their assets. Getting a head start on planning and creating a Will is a smart move for seniors. These proactive measures not only simplify the process for their loved ones but also cultivate a sense of reassurance. In some cases, senior citizens might also want to appoint guardians for their dependents, if needed, and appoint an executor to manage the estate after their death. The legal consequences that could result from not having a valid Will are particularly significant for senior individuals, as well as their families.
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Legal Hurdles faced by Seniors
To tackle legal hurdles, a Will is a necessary tool. One of the biggest challenges posed in front of seniors is the smooth transition of assets. A Will plays a crucial role in helping them assign assets to members that they would want as beneficiaries. In the absence of a Will, intestacy laws apply, which dictate how the assets are distributed. The laws may or may not assign the assets in alignment with the senior’s wishes. In the case of Raghunath, without a Will, his wealth may be transferred to family members that might not be his intended beneficiaries, possibly members who he has familial differences with.
This can result in family disputes and delay the distribution of assets. In another instance, if a senior has dependents, such as minor children or disabled family members, in the absence of a Will, a court may designate a guardian that may not be in accordance with the senior’s wishes. Another common challenge frequently encountered is the vulnerability of senior citizens to coercion when navigating decisions related to inheritance. The absence of a Will leaves these seniors defenseless in the face of potential coercion during the transfer of assets, underscoring the importance of a Will. Those in need of healthcare directives should create living Wills and appoint healthcare personnel to make medical decisions and ensure proper care. Since Raghunath is suffering from an illness, with the help of a Will he can ensure his wishes regarding medical treatment and end of life treatment, if any, are legally binding.
The Power of Attorney
In parallel, the interests of elderly citizens are vitally protected by the Power of Attorney (POA) document. A Power of Attorney is a legal document that grants someone, the agent, the authority to make decisions and act on behalf of a person, the principal, typically in financial, legal, or healthcare matters in cases where illness or other circumstances render the principal incapacitated. An individual can designate a reliable person to handle their affairs with the use of a Power of Attorney. In the case of Raghunath, he can assign a trusted friend or family member or a trusted lawyer to be his agent to make decisions in case he becomes incapacitated.
The Power of Attorney document, according to the circumstances, can be of different types. For example: A Health Care POA lets the individual choose an agent to make health related decisions only. This would be important for someone like Raghunath. Similarly, in case an individual is incapacitated and wants someone to manage finances, a Financial Power of Attorney lets an agent make financial decisions on behalf of the principal such as signing cheques, filing returns, and managing investment accounts. Financial POA’s are further divided into three categories namely General Power, Limited and Durable Power of Attorney. A thorough awareness of legal requirements is also necessary while drafting a Power of Attorney. The principal designating an agent must be of sound mind. To avoid abuse or overreach, the document should also clearly define the agent’s area of authority. It is also important to understand how to cancel a Power of Attorney in case an individual needs to make changes due to circumstances.
The Bottomline
Estate planning becomes increasingly important for senior citizens in their later years. The importance of appointing a Power of Attorney and writing a Will extends beyond asset distribution to include the preservation of dignity, autonomy, and the assurance of peace of mind for both the individual and their loved ones. The case of Raghunath highlights the legal challenges that seniors may face without a will, emphasizing the essential role these documents play in safeguarding their wishes. Understanding the critical role of Power of Attorney and Wills is imperative, as these instruments serve as crucial safeguards for the well-being and desires of senior citizens. By proactively undertaking these measures, elderly individuals can fortify the security of their belongings during post-retirement years and after life, fostering a comprehensive and thoughtful approach to their legacy.
(By Vishnu Chundi, Founder and CEO, AasaanWill. Views are personal)