Grace and Al, both 75, are enjoying their retirement. Although they stay active with different activities and events, they also love the freedom to choose how they want to spend their time. Grace and Al are getting more and more concerned about their health. Al suffered a stroke last year, prompting a move to a retirement residence offering partial care facilities. Their income is relatively fixed and they are worried about the impact that long term care costs would have on their savings. Al’s health has also been a reminder that they need to update their wills and get their estate plans in order. Grace and Al aren’t sure if they have powers of attorney.

Solution

The first step for Grace and Al was to complete the Cash Flow Worksheet. This was a useful exercise because it helped them identify all of their retirement income streams and expenses. They weren’t surprised to see a cash flow surplus remaining at the end of each month. They plan to set aside some of this money to pay for Al's health care costs down the road. They also plan to look into long term care insurance coverage as a way of supplementing health care expenses for both of them.

Grace and Al's wills were prepared several years ago, but they have never prepared powers of attorney for property or personal care. They reviewed the Estate Planning Checklist and identified a number of changes they need to make. They plan to visit an estate planning lawyer next week to have their wills and powers of attorney updated.

Grace and Al and can rest easier knowing that they have planned for any additional expenses and that when they do pass away, their affairs will be in order.