Question 1

What's the difference between a will and a living trust for an aging parent?

Accepted Answer

A will takes effect at death and goes through probate — a public court process that can take months and cost 3–5% of the estate. A living trust transfers assets immediately to beneficiaries at death, avoids probate, and keeps the estate private. For parents with real estate in Illinois, a living trust often makes sense, but an elder law attorney can advise based on your specific situation.

Question 2

When should I set up power of attorney for my parent?

Accepted Answer

Set up both a financial power of attorney and a healthcare power of attorney as soon as possible — while your parent still has full mental capacity to sign legally. Once a parent loses cognitive capacity, you may need to go through costly and time-consuming court-appointed guardianship. Estate planning attorneys in the Northwest suburbs can typically complete these documents quickly.

Question 3

What does Medicaid planning involve and when should we start?

Accepted Answer

Medicaid planning involves legally structuring assets so a parent can qualify for Medicaid to pay for long-term care. Illinois has a 5-year 'look-back' period, meaning asset transfers made in the 5 years before applying can disqualify you. Starting early is critical — ideally before a health crisis forces the issue. A Medicaid planning attorney or elder law attorney can walk you through the process.

Question 4

What documents should every aging parent have in place?

Accepted Answer

At minimum: a will or living trust, a financial power of attorney, a healthcare power of attorney (proxy), a living will (advance directive) stating end-of-life wishes, and a POLST form if their health is declining. Make sure you know where originals are stored and that key family members have copies.

Question 5

How do I find a trustworthy financial advisor for my parent?

Accepted Answer

Look for a fiduciary — an advisor legally required to act in your parent's interest, not just recommend suitable products. CFP (Certified Financial Planner) and fee-only advisors are good starting points. Avoid advisors compensated primarily through commissions. The NAPFA directory at napfa.org is a good source for fee-only advisors serving the Northwest suburbs.

Legal & Financial in the Northwest Chicago Suburbs