Diminished Capacity
Living in Retirement
Primary goal: Prepare both legally and financially
for late life dementia.
The Background
John and Ellen had always independently managed their finances. Now that they were approaching age 80 and Ellen had recently started to experience early signs of dementia, the couple approached HTG for help planning for future care expenses and managing their assets. They wanted Ellen to remain in their home as long as possible. They planned to eventually move to a continuing care facility where John could live in an independent apartment and visit Ellen daily within the community. They also wanted to prepare for the time when Ellen was no longer able to make decisions about their assets and document her wishes regarding her care.
The Challenges
- John and Ellen wanted to understand how much their planned care path would cost and the impact on their portfolio.
- They didn’t know if their existing estate documents were sufficient in the event of future incapacity.
- John and Ellen no longer wanted to self-manage their investment accounts and were unsure if their asset allocation was appropriate for their current circumstances.
How We Helped
Their HTG advisors worked to simplify their affairs, checked that their beneficiary designations were in line with their wishes, and coordinated with their attorney to make sure their estate plan was up to date, and appropriate powers of attorney and health care proxies were in place. They each created a living will that expressed their wishes for care should they become incapacitated. Their attorney recommended placing their home and investment accounts in a new trust. HTG helped them retitle the accounts appropriately to ensure everything aligned with the recommendation.
HTG also adjusted their investment allocation to reflect their new risk capacity and anticipated income needs. John can now devote more time to his family, hobbies, and traveling with Ellen while she is able.
- Quantified the cost of care and completed a financial plan projecting increasing levels of in-home care and an eventual move to a continuing care facility.
- Reviewed and worked with their attorney to update estate planning documents to ensure protection against future incapacity.
- Coordinated with their attorney to establish a living will for both John and Ellen to communicate their healthcare wishes.
- HTG assumed management of their investment accounts so they could enjoy their time together.
- Retitled accounts in the name of the new trust.
- Adjusted their asset allocation to better align with projected housing, health care expenses, and withdrawal needs.
