Old age and the law
LET’S START with this inescapable truth: If we live long enough, we will all get old. One of the features of old age is the need to rely on others to assist in doing things that were routinely undertaken without a moment’s thought, such as a trip to the doctor or to the bank.
The usual legal advice to clients well before any debilitating effects of old age set in is that there is a need to engage in thorough estate planning. This may include the transfer of property into the joint names of a parent and his or her child, or the establishment of a trust, which involves the appointment of trustees to manage the trust property. Also aligned with these ideas is the preparation of an enduring power of attorney, which may be utilised even if the grantor of the power (such as an elderly parent) becomes mentally incapacitated.
Usually, it is only after carefully laid plans are tested that we realise that no plan is foolproof. Even the wealthy and famous must accept this. Within the past 12 months, Buzz Aldrin, lunar module pilot on the Apollo 11 mission, who was one of the first two humans to land on the Moon, has been faced with this challenge.
PUBLIC DISPUTE
In June last year, the legendary astronaut’s dispute with his children and business manager became a public matter when two of his children filed an action in court to be appointed as his legal guardians and cited concerns about his “increased confusion and memory loss”. Buzz fought back by filing his own legal action and contended that his children and business manager were trying to take advantage of him and strip him of his autonomy.
More than six months later, the feud between Buzz and his children has apparently intensified. Based on media reports, Buzz had established trust accounts at Morgan Stanley, two of which named his son as trustee. Buzz recently issued instructions to close the accounts and transfer the funds to him, but his son also issued instructions not to transfer the funds. In the face of these competing instructions, and to protect itself from liability, Morgan Stanley asked the court which instructions should be followed. The matter is pending.
Former US President Ronald Reagan suffered from Alzheimer’s disease, and the first female Supreme Court justice, Sandra Day O’Connor, announced that she had been diagnosed with dementia. In both cases, they increased the level of public awareness about mental illness and its debilitating effects. How well persons in these situations are able to cope will largely depend on proper diagnosis and the support of trusted family.
Ultimately, even if plans are not foolproof, we must not despair and fail to put measures in place to protect our assets and minimise the stress on our loved ones in relation to financial and medical decisions. The following suggestions from alz.org mean that discussions with trusted family members, a lawyer, a financial adviser and a doctor: • Taking inventory of existing legal documents, reviewing and making necessary updates. • Make legal plans for finances and property.
• Putting plans in place for enacting your future health care and long-term care preferences.
• Naming another person to make decisions on your behalf when you no longer can. The best advice is to ensure that you seek advice and make informed decisions.