'Tis the Season to Lend a Helping Hand
During the holiday season, platitudes abound about the importance of giving and helping others.
We know there is truth to sayings such as "it's better to give than to receive" because we know
how it feels to find the perfect gift for someone and watch them unwrap it. The idea that giving
makes us feel better is also backed by science, which identifies the emotional and psychological
benefits of generosity.
Simple acts of kindness may be a proven happiness hack. But if a client is suddenly thrust into a
role - such as a caregiver, an agent under a power of attorney, or a trustee - that requires them
to put another person's needs before their own, platitudes alone will not suffice. They may need
professional guidance to help them manage or wind up a loved one's affairs.
Caregiving and Estate Planning Roles a Client Might Face
The holidays serve as a reminder of how quickly life happens. It can also feel this way when we
get the news that family is counting on us - and not just to bring the rolls to this year's holiday
dinner.
Perhaps a client finds out that their mother's health has deteriorated and she needs somebody
to take care of her or their father has passed. They might have known this day was coming.
However, now that it is here, your client may feel unprepared and unsure of what to do next,
especially if they have been put in any of the following positions:
- Agent or attorney-in-fact. An agent (also referred to as an attorney-in-fact) under a
power of attorney has the legal authority to act on another person's behalf to handle their
financial or medical matters, depending on which powers are granted under the power of
attorney.
- Trustee of a trust. A trustee manages a trust for the benefit of the trust's beneficiaries.
- Estate executor. An estate executor (also called a personal representative) is appointed
to administer and settle a deceased person's estate in probate court according to their
estate plan (or state law if they have not created an estate plan).
- Caregiver. A caregiver assists with the daily activities of an elderly or disabled person.
These roles have their own set of duties and responsibilities. However, they have one thing in
common: the person chosen to serve may not be fully prepared - even if their background
makes them a good fit.
A daughter may be an emergency room nurse, but Mom's dementia presents entirely different
challenges (perhaps medically and emotionally) from what she is accustomed to dealing with. A
son may work in finance, but that does not mean he knows how to properly oversee a trust.
Family members may be willing to help and may have been given the legal authority to act. But
that does not mean they have the experience and knowledge necessary to do what is asked of
them without encountering substantial difficulty. In these situations, how can they ensure that
they are doing not only what is best for the family but also what might be legally required of
them? Who helps the helpers?
Where Clients Can Turn for Assistance
Working-age Americans put in an average of 45 hours per week of both paid and unpaid labor.1
The exact number is based on gender and individual circumstances.2
Many of us struggle to find the time for our own personal affairs. Finding extra time to serve as a
caregiver or fiduciary, especially during busy periods like the holidays, can be overwhelming.
A client also faces time-consuming legal requirements when serving as a healthcare agent,
attorney-in-fact, executor, or trustee. A person legally responsible for making decisions for
others is held to a high degree of accountability. It may be a family affair, but beneficiaries and
heirs have rights, including the right to sue an executor or trustee they believe is not acting in
the best interests of the person they are acting on behalf of or in their own interests in the event
of death.
Family conflicts surrounding end-of-life decision-making should be expected. These difficult
situations do not always bring out the best in people. They can often bring out the worst and
exacerbate existing tensions.
If you have a client who is uncertain about navigating the role they have been given, they should
know that help is available and where to find it.
- An accountant can advise them on tax matters, such as providing the court with an
inventory of the estate's assets and filing all necessary tax returns and accountings for
the deceased.
- A financial advisor can provide guidance about investing and managing trust assets.
- Home healthcare providers can assist with skilled and nonskilled care of an older adult.
- An attorney can help clients understand their fiduciary duties and perform their tasks as
agents, trustees, or executors.
In some cases, it may take a group of professionals working together to provide the appropriate
amount of assistance. Consider an aging parent who requires long-term care, a Medicaid
spend-down, and related asset protection - a situation that involves medical, financial, and legal
planning.
We Can Team Up Year-Round
The holidays come only once a year. However, clients count on our advice no matter the
season.
You could get a call out of the blue from a client asking how to approach an unexpected and
highly charged family matter. Despite having the best intentions, they may be unsure how to
proceed. They want to do right by their loved ones while also protecting themselves. What
should they do?
We became advisors because we value helping others. Sometimes, helpers need helpers, and
the professionals assisting the helpers might need help, too.
In this giving season, we should remember that it is okay to ask for help. That goes for us as
much as for our clients. Working together, we may be better able to solve problems and expand
our offerings. If you need attorney advice about a client matter, please reach out.
MEREDITH | PC
4325 Windsor Centre Trail
Suite 400
Flower Mound Texas 75028
214-513-1013
This newsletter is for informational purposes only and is not intended to be construed as written advice about a Federal tax matter. Readers should consult with their own professional advisors to evaluate or pursue tax, accounting, financial, or legal planning strategies.
You have received this newsletter because I believe you will find its content valuable. Please feel free to Contact Me if you have any questions about this or any matters relating to estate planning.
