Estate Planning for the Sandwich Generation

People in the sandwich generation, those who are caring for aging parents as well as children, including near-adult or adult children (the worries are never over!), have a lot on their shoulders from logistics to the “what ifs,” especially, “What if I am not around to take care of everyone?” 

Though a lot of scary scenarios might run through your head at first thought, there is a way to quiet your fears: estate planning. Yes, estate planning in the sandwich generation is an effective means to turn what feels like insurmountable burdens into peace of mind that the people you love and care for the most would be taken care of in your absence or in the event of your incapacity.  

Think of estate planning in the sandwich generation as shopping in bulk. Just as you would load your cart up with food from Costco if a snowstorm were coming, buying extra to last you for a few days if you couldn’t get out of your house, you should arrange to have a Washington state estate planning attorney draft five key documents for your estate plan, your children’s, and your parents’. Start with yours (oxygen mask on first), and then quickly move on to your children and parents within a short time.  

When you draft estate planning documents (or update them, which you should be doing every three years or any time there is a life passage in the family that could affect your estate planning decisions) concurrently or close in time, your beneficiary information, or anything else in your estate plan that may relate to one another’s estate plans, has a stronger likelihood of staying consistent and up-to-date. As a member of the sandwich generation, here are the documents you will need for yourself, your children, and your parents.   

Last Will & Testament

Your last will & testament is often the first document that comes to mind when people think of creating an estate plan. It includes instructions about how you want your assets to be disposed of (i.e., distributed to) and who will hold important estate planning roles, such as executor, guardian, powers of attorney (discussed below), and trustees and guardians, if applicable. 

The thing is, a last will & testament is only one piece of the puzzle. And while it’s smart to have a will, with just this one document, you, your children, and your parents won’t be fully protected. 

Financial Power of Attorney

In addition to your last will & testament, you will also need what’s known as a financial power of attorney. This document grants a person you choose to pay your medical bills from your various financial accounts should you become incapacitated. Because this person will have access to your financial information and be in charge of managing your finances, it should be someone you trust not only to be honest but also to be effective at managing bill payments and other related responsibilities.

When you assign someone to this or any other important role in your estate plan, it’s best to ask them first if they would be up for the job. If they’re not or don’t want that responsibility, they can then decline, allowing you to find someone else who would. Whoever you choose should also know where to find account numbers, logins, and passwords so they can fulfill their role should they ever find themselves in that situation. 

Healthcare Powers of Attorney and Advance Directives/Living Wills/Healthcare Directives

Healthcare powers of attorney differ from advance directives/living wills/healthcare directives, terms often used interchangeably. The former appoints an agent (a healthcare proxy) and outlines the decisions they may make. The latter outlines what should happen if you’re on life support, such as whether you want lifesaving measures, information that your healthcare proxy would be responsible for communicating to your medical team.

Again, given the responsibility involved in this role, you want to choose someone you trust. This is why, if you’re in the midst of a divorce, we suggest revisiting your estate plan so you don’t have your soon-to-be ex-spouse in a position you might not be comfortable with. 

The person you choose should also be comfortable carrying out your last wishes, even if it’s to communicate a do-not-resuscitate order, for example. If you think they might hesitate because they won’t agree with your wishes or be too emotional to give a particular instruction, you should consider finding someone else. Speaking to someone you are thinking of assigning before actually doing so will provide you with this insight.    

HIPAA Authorization

The HIPAA Authorization is a critical document because it ensures that the person you name — whether a healthcare proxy or someone else — can access your medical records. Many people, especially parents of children who have recently turned 18, are surprised to learn that once their child becomes a legal adult, they won’t have access to their child’s medical records. With children far away at college or having moved away from home, this can quickly become a logistical nightmare and a waste of precious time in the event of a medical emergency. 

The same holds for you and aging parents. If you or they were in a medical crisis, you would want the person of your choosing to have access to your medical records immediately for informed decision-making. A HIPAA Authorization can provide you with the peace of mind that the person in charge of your care won’t be shut out.    

Trusts

There are numerous types of trusts to support your estate planning needs. Wills can include what’s called a testamentary trust. Testamentary trusts form upon the testator’s (will creator’s) death. They are used, for example, to hold the funds or assets left to a minor child if other arrangements have not been made.

Other types of trusts are revocable trusts (one in which the creator can make changes to it during their lifetime), irrevocable trusts (one the creator will no longer be able to make changes to but can reap certain tax benefits during their lifetime from, among other benefits), and special needs trusts (which can be used to provide for a child who reaches the age of majority but may need continued care or aging parents who may not be able to care for themselves). 

You can have more than one kind of trust, and many estate plans include various types. Your Seattle estate planning lawyer will be able to advise you on which kind of trust you need, if any, based on your individual situation and Washington state’s complex estate planning laws. 

Find a Seattle Estate Planning Attorney to Support Your Needs as a Member of the Sandwich Generation

Estate planning can feel daunting when you consider how much goes into it, but when you create a comprehensive estate plan, you get the satisfaction of knowing all your i’s are dotted and your t’s crossed. In other words, you can rest easy that you and your loved ones will be taken care of.
At Elise Buie Family Law, our team of Seattle estate planning attorneys has extensive experience navigating Washington state’s estate planning laws and applying them to families of all shapes and sizes. Estate planning is not one-size-fits-all, and we are here to handle, with patience and care, your intentions for yourself, your children, your aging parents, and anyone else you care about. Contact us today or schedule a convenient time to speak.