HOW TO MAKE SURE THAT DECISIONS WILL BE MADE IN YOUR BEST INTEREST?

By:  Robert J. Myers, Esq.

In making decisions about potential sources of funding for health care, you should consider certain
"protective services." These become important if you ever become unable to handle your own
affairs, due to physical or mental incapacity. Unless proper legal action is taken in advance, your
family may be unable to act on your behalf should the need arise.

                                        Problems With Joint Ownership

Joint ownership is often used to give legal authority to another person. For example, you might
simply add your daughter's name to your account, thinking you've solved various estate and
financial planning problems, such as avoiding probate or ensuring you will be taken care of.

But joint ownership may not solve some problems, and could even create others. First, the joint
owner may be able to withdraw 100% of the assets held in joint name. Second, both joint owners'
signatures are usually required anyway to sell or liquidate assets. In addition, your assets may
become subject to claims by your children's creditors.

                                              Revocable Living Trusts

One strategy you should consider is establishing a revocable living trust, which would hold title
to your assets. Such a trust not only offers estate planning advantages, such as avoiding probate,
but also ensures that a trustee would handle your financial affairs in the event of your incapacity.

But your financial situation is not the only thing to consider in the event of incapacity. You may
need someone else to step in and make personal decisions regarding your health care or the
maintenance of property you own. In addition, a trust may not be appropriate, depending on the
amount of assets you own.

Since joint ownership is obviously not the ideal solution and trust may not be for everyone, are
there other ways to plan for the possibility of you incapacity? Generally, there are three other ways
you can give legal authority to another person:

          Guardianship
          Conservatorship
          Durable power of attorney

Of these three, the most effective is a durable power of attorney. In our next article, we will take
a look at how these legal transfers of control and decision-making work and which method would
be best for your situation.

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Robert J. Myers is managing attorney of the Estate and Trust Division of  Maney l Gordon P.A.,
located at 1135 Pasadena Avenue South, Suite 140, St Petersburg, Florida. The telephone number is 727-347-5131. Mr. Myers welcomes calls regarding this article and other related legal topics. 
This column outlines general legal principles and is not intended to give you legal advice. 
If you have a specific question about the law, please consult an attorney. 

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