Saturday, February 1, 2014

10 Legal Problems That Could Change Your Financial Situation After 50's

Photo: aarp

Society is getting ruthless by the day and it takes no second thoughts for me to analyze that the elderly people are a vulnerable lot; they start to reflect on those vulnerabilities once they are into their 50’s. They have a lot to worry about, such as how to pay for health-care, how to protect assets, how to ensure good care for their spouse, how to get home care and a lot of other things besides these. To ensure protection of your rights, litigation may become necessary which involves long battles and a severe drainage of resources. But if you already have some idea about the legal problems and ways to deal with them, you can save yourself from a lot of hassle later on.

Disobeying the terms in your Advance Healthcare Directive

If you become incapacitated or paralyzed, you must have someone to communicate your wishes regarding the finances for health-care. You should get the health care that you desire to get in writing in advance healthcare directive or living will. Your kith and keen may be reluctant to adhere to the will since that may involve selling of assets or such other things. 

Continuance of treatment to terminally ill patients

There may occur a situation when your near and dear ones may be wanting to continue your treatment even when your quality of life and prognosis of disease is very poor. They may have interest in your survival; or just don;t have the strength to let go off of you. If you lay down strict terms in your Living Will that in such situations, treatment should be discontinued then you need not suffer along.

Asset protection

When all the resources for paying for your health-care are exhausted, your property is the last resort. What if the property itself is under litigation? Your spouse, children or others may have an eye on it and may prevent selling or mortgaging it. You would not want to think negatively of your family, but taking the point in consideration is of extreme importance to ensure you don;t end up n a difficult spot later on.

Wills and estates

All the money you have made and properties that you have acquired may be a source of litigation with even your near and dear ones. Even if you have made a will it may be a source of discontent for many and result in litigation. Ensure you are aware of such situations and have plans on tackling them sorted beforehand.

Long term care facilities

With increasing number of people claiming resident rights in Long Term Care Facilities, it may be a source of litigation too. 

Estate income

Income from the estates acquired or inherited by you may also be a source of acrimony between your siblings and others. This may give rise to legal problems.

Gift tax

People in their 50s should remember not to use gifting as a way of paying for nursing expenses. This is because the gift tax is applicable to the donor and not to the recipient. You may end up coughing up a large amount of tax or get involved in a court case.

Power of attorney

It is usual for elderly people to appoint Power of Attorney to take financial decisions on their behalf. But you can get involved in legal problem with him or her if he or she deviates from your principles. A mischievous power of attorney holder may also rob you off your resources.

Distribution of assets

Distribution of your assets between your spouse, children and other beneficiaries may be a source of legal conflict.

Financial transaction penalties

Quite a lot of interest may be due to the bank on your credit card transactions. If you are not able to pay the interest timely then it will amount to a huge sum due to accumulation of all the penalties and fines. This may be a source of bitter legal problem after 50s.

It is always a good idea to know what can cause you harm and take actions before that problem starts to engulf you. Like they say, Prevention is Better than looking for a cure.

Written By:
Adam Prattler blogs about attorneys and the best practises before hiring one. He has an extensive post on no win no fee specialists and when to hire such set ups on his website.

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