As people age, preparing for the future becomes crucial. Cognitive decline could affect their ability to make decisions and manage our affairs. Thankfully, estate planning can help people prepare for cognitive decline, ensuring that both they and their loved ones have the support they need.
What is cognitive decline?
Later in life, people often experience gradual loss of cognitive abilities like memory, thinking, and reasoning skills. Conditions like Alzheimer’s disease and other forms of dementia are common causes of cognitive decline in older adults.
Studies have shown that this decline can begin fairly early. In fact, after age 60, the ability to make financial decisions decreases around 2 percent every year. This makes it especially important for aging people to think ahead when creating their estate plan.
How can you use estate planning tools to prepare for cognitive decline?
Cognitive decline can impair a person’s ability to manage finances, make medical decisions and understand the consequences of legal choices. Creating an estate plan can be a beneficial way to prepare for potential future decline.
Some of the tools that can protect you and your loved ones include:
- Wills and trusts: These documents help you control the distribution of your assets. By setting up a will or a trust, you can ensure that your property is passed on according to your wishes, potentially reducing family conflict and legal complications that could arise if cognitive decline impairs your decision-making capabilities later on.
- Powers of attorney: This document allows you to appoint someone you trust to manage your financial affairs or make medical decisions if you cannot do so yourself.
- Advance healthcare directives: This document outlines what kind of medical treatment you prefer to receive if you become unable to make decisions for yourself.
Estate planning while still in good health and clear mind can reduce the burden of difficult decisions on your family and provide you with peace of mind knowing that your affairs are in order. Proper estate planning can also help protect your assets during your life and secure financial stability for your dependents.
Estate planning is not just about managing assets. It is a crucial part of caring for your future self and those you love.