Using a power of attorney for disability, aging issues
A financial durable power of attorney has several drawbacks from the standpoint of planning for aging, but this is the only document often used to protect against disability and aging-related issues such as cognitive impairment.
Establishing a revocable trust allows for some checks and balances that designating a financial power of attorney doesn’t, Mr. Shenkman said. Those include the appointment of a “trust protector” (a fiduciary who’s empowered to change trustees) and the appointment of a trust company rather than an individual to serve as successor trustee.
“The vast majority of elder financial abuse is committed by family and home health aides. So why does everybody name family members in these positions when you can name a trust company?” Mr. Shenkman said.