Planning For Decrepitude Part II

PLANNING FOR DECREPITUDE PART II is where to buy a home after retirement. Yeah, that’s me, I ain’t ‘a leavin’.

The Blockdaughters have said they remember laughing and using the word “decrepit” as pre-teens.  They still like to use “decrepit” because its sounds fun to say.

Blockdaughter II is a Certified Financial Planner, and this post originated with her question “Dad, what is the condition of your estate planning?” I said, “From your standpoint, it is a disaster, the revocable trusts and living wills are out of date, and accounts are not organized nor instructions prepared.” I had to promise to complete “decrepitude planning” or be subject to a family “cabal” which is an illegal gathering of daughters to pass judgment on wayward parents. To avoid this fate I’m completing decrepitude planning. Then I’m posting my progress so everyone can gauge my progress, including Blockdaughters.

Ahh harr! I’ve started the new revocable living trust, with dispositions of property, but more importantly, a simple incompetency clause in the event I fall off the roof (or have a stroke, get Alzheimer’s, or who knows what) with living will and durable power of attorney for health care!

Adult children tend to have disputes along about the time mom passes away, so it is important adult children participate, know and agree to who trustees are, and who makes health care decisions. My policy is each Blockdaughter has a part and responsibilities all children agree to ahead of time.

I also provide instructions about how the trust and living will are to be used. For instance, if I could not admit and sign myself into the hospital, I instruct the trustee of the trust to admit me by signing as Trustee. This avoids personal liability for hospital bills my children could otherwise incur without realizing it. Trustees should know where original copies of trust and living will documents are kept.

Right after retirement people are in the “go-go” having fun stage of life. They make mistakes. Typically the “go-go” stage of retirement lasts only 5-8 years, for men until about 72. Then the “slow-go” stage begins when you’re going; but not often, and much slower. This stage typically starts at 72 and lasts another 5-8 years. It is at this “slow-go” stage you need to worry about slipping and falling at home, or not being able to climb stairs, even a couple, and driving a car. The “no-go” stage of retirement is tough because of chronic illness, or disability. Often the “no-go” stage of retirement lasts 8-15 or more years.

There are excellent retirement community selection books to read.

Since most of us will spend 16+ years in the “go-slow” and “no-go” stages of retirement the smart decision is to:

1) stay in or move to a community near adult children, within say a half hour drive, and

2) the community should have a full array of medical facilities, hospitals and doctors, senior recreation, and transportation facilities not more than a fifteen minute drive away. (Generally this means cities of seventy thousand people or more.)

The basic mistake I’ve seen my friends make is to move to a beautiful retirement area far from doctors, hospitals, transportation and children. Then “dad” has a major disabling illness. Mom drives dad miles and miles for doctor visits. There is no help. Ambulances are not readily available. In-home nursing visits are difficult to arrange. Life revolves around doctor and hospital visits with long drives often of 1-5 hours duration one way. Not good. Mom gets no help. Then mom has an illness. Single adult seniors have similar difficulties.

The first step in retirement planning is choosing a community to buy a home in, or just planning to stay put. I’m holed-up in Santa Clara County.  But some of you will want to move to the perfect place to retire.

Be sure to read Part III, how to stay in your home during prolonged illness or disability.

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