Avoiding the Ageing Parent Trap

I was fortunate to attend a talk by Brian Herd, a Brisbane based lawyer who had a legal firm specialising in Elder Care.  Now retired, but still involved with family mediation, his book will demonstrate many of the unintended traps encountered by children and their parents.  This is a book every parent and child should read.

The forward by Noel Whittaker says:

This book should be required reading for all law students, lawyers, accountants, financial planners and advisers.  Equally important, it should be read by older people preparing their enduring documents (wills, powers of attorney and advanced care directives) and their families.

Brian Herd has used his extensive experience in Elder Law to put together a considerable list of examples of where things have gone wrong in the business of preparing the right documents for the final stages of life.  While many of these experiences will not be relevant to your personal situation, I believe they will make interesting and entertaining reading for everyone.

I think the most important thing is to understand “unintended consequences” and be sure that you and your family look past the immediate situation to what may happen in the future.  For example, what may happen if one partner has dementia and is in a care facility where they develop a relationship with another resident.

During Brian’s talk and after reading this book, I became very aware of the term ‘de facto’ relationship.  Many people think that because they are not actually living in the same residence they are not in a de facto relationship.  This may not be true in some circumstances and something you should discuss with your lawyer.

The book describes a situation where one person was in four de facto relationships at the same time, and each had equal entitlement to the deceased estate.

Over my lifetime, I have been amazed at a number of friends, facing a terminal illness, and often with blended families who have not made a will.  If you learn nothing else from this book and you are one who have not made the correct provisions, please read this book, visit your lawyer and prepare the following documents:

• Last Will and Testament
• Enduring Power of Attorney
• Advanced Health Directive

Much of the information is relevant to those who are just commencing their investment journey.  It is important that your investments are made in the best entity taking into account future capital gains and inheritance.

I recommend this book to everyone who wants to ensure that their inheritance is given to those for whom you intended.  It is a book you may want to recommend all your family members read so you all understand the implications of not taking action now.

Glenis Phillips SF Fin – Good Financial Reads