Retirement should be some of the best days of your life, with freedom to spend time with friends and family and pursue hobbies. With some planning ahead, you can make sure your affairs are in order so that any unexpected circumstances can be dealt with, without stress or confusion. Don't put off dealing with the following issues—they can make the difference between a good retirement and bad one. Here are 15 legal pitfalls seniors should do their best to avoid.
Keep your family estate documents up to date with births, deaths and so on. Whenever there are changes, update the documents to reflect that. You don't have to be rich to need proper estate planning—your belongings need to be transferred after death, so plan accordingly.
Make sure to plan for having a guardian or conservator just in case it's needed. If a person is considered incapacitated before making that decision, it will be up to the court to decide. By planning ahead you can avoid ending up with a guardian you don't like.
Seniors are frequently targeted by scammers because they often don't understand the implications of sharing certain information. Never trust anyone who wants you to give them money. Go through an accountant or other professional when making financial decisions.
Having a solid will and trust is crucial for estate planning. If you haven't prepared for this, the state can decide how your assets are divided.
Talk to an expert about what might happen with taxes related to retirement accounts or sale of property. The last thing you want is to be hit with unexpected liabilities.
Dealing with estate planning and wills are difficult and can be tricky. Complex issues require expert advice, so don't try to handle it by yourself. Get professional help when needed.
Make sure to designate a trusted person with power of attorney for finances. If for any reason something happens or you become incapacitated, this person will have the power to manage your financial affairs and prevent abuse.
Losing a spouse is traumatic enough in itself, but it comes with many related legal issues. "Losing a spouse is extremely difficult and can come with an overwhelming list of legal responsibilities," according to Churchill, Quinn, Hamilton & Van Donselaar. "After initial tasks like notifying loved ones and planning the service, estate issues involving the will, trusts, assets, debts, taxes and more must all be settled."
Medicaid is not just a given—there are rules in place about eligibility. Talk to an expert about anything that might cause penalties or prevent you getting benefits.
Gifting can cause legal pitfalls, experts warn. "As people get older, they often think of passing on their wealth to their heirs," according to Churchill, Quinn, Hamilton & Van Donselaar. "Many seniors want to start gifting while they are still living, but this can cause some legal issues. For example, giving away too many of your assets can cause you to be penalized by Medicaid if you try to apply for long-term benefits. It is always a good idea to speak with your attorney and develop a well-thought-out plan for gifting during your retirement years."
Look into Medicare and long-term care insurance to avoid issues down the road. Learn which resources are available to you and plan accordingly.
Don't neglect to draw up a living will, which is different from a traditional will. A living will is a crucial document that instructs how your medical issues should be handled in case you cannot make those decisions yourself, for whatever reason. In California it's also known as a advance healthcare directive.
If you can't afford your prescription medication, don't be tempted to take a good deal without verifying that it's not a scam. "You should never assume that prescription drugs you buy on the internet are what you should be taking," says the State of California Department of Justice. "They may be sugar pills. They may be something much more dangerous. If you're unable to pay for your prescriptions, you may be eligible for assistance from the drug manufacturer."
Don't be bullied into spending more money than you want to with funeral arrangements. "Unscrupulous funeral homes may try to take advantage of your grief by selling you burial items and other services that are unnecessary or inappropriate to your financial condition," says the State of California Department of Justice. "Consider making arrangements for yourself and your loved ones before death."
If you live in a nursing home and need help, don't hesitate to tell someone. "One of the hardest legal issues facing seniors can be improper care at a nursing home," according to Churchill, Quinn, Hamilton & Van Donselaar. "Abuse in a healthcare facility can include physical abuse, overmedicating, verbal abuse, lack of proper nutrition, poor hygiene and much more. Unfortunately, it can be a common occurrence and legal assistance should be sought out at the first sign that you or a loved one may be a victim."
