The Long View: Sally Balch Hurme: Getting Your Affairs in Order as You Get Older

Key Concepts

• Elder Law: Legal practice focused on issues affecting older adults, including estate planning, guardianship, and healthcare decisions.
• Checklist Approach: Utilizing structured lists to organize and address essential life planning tasks.
• Power of Attorney (Financial & Healthcare): Legal documents granting authority to another person to manage financial or healthcare decisions.
• Beneficiary Designations: Specifying who will receive assets from retirement accounts and life insurance policies.
• Digital Assets: Online accounts, passwords, and digital information requiring management and access planning.
• Legacy Contact: Designated individual authorized to manage online accounts after death (offered by some platforms).
• Guardianship: Legal process where a court appoints someone to make decisions for an incapacitated individual.
• Estate Planning: The process of arranging for the management and disposal of one's assets after death.

Comprehensive Summary of "The Long View" Podcast with Sally Balch Hermy

This podcast episode of "The Long View" features an interview with Sally Balch Hermy, author of Checklists for My Family: A Guide to My History, Financial Plans, and Final Wishes, and a veteran in the field of elder law. The discussion centers on proactive planning for aging, caregiving, and end-of-life considerations, emphasizing the importance of organization and clear communication with family.

I. Sally Balch Hermy’s Background and Career

Sally Balch Hermy has dedicated nearly 50 years to elder law, beginning as a legal services attorney and evolving through roles at the American Bar Association (ABA) and AARP. She notes being a pioneer as one of the few women practicing law during the early stages of the field’s development. Her work at AARP allowed her to broaden her understanding of the diverse legal challenges faced by older adults. She authored over 20 law review articles and contributed to the development of guardianship standards through her involvement with the National Guardianship Association and the Center for Guardianship Certification. Prior to AARP, she was a partner in a private law firm and taught elder law at George Washington University Law School for eight years. She has sold over 100,000 copies of her checklist books.

II. The Importance of Proactive Planning & Personal Experience

Hermy stresses that planning isn’t solely about preparing for death, but about simplifying life for the future. She draws on her personal experience as a full-time caregiver for her husband, who has been living with dementia for over 10 years, to illustrate the practical benefits of advance planning. Key actions taken included downsizing to an accessible home, relocating closer to family for support, simplifying finances to one bank account and credit card, and updating legal documents while her husband still had capacity. She emphasizes the importance of patience, flexibility, and maintaining perspective – reminding herself that the disease, not her spouse, is the source of the challenges. She highlights the difficulty of implementing plans even when they seem straightforward on paper.

III. Getting Started: Overcoming Overwhelm

The conversation addresses the common feeling of being overwhelmed when facing these tasks. Hermy suggests starting with personal history – documenting life stories, childhood memories, and significant experiences – as a less daunting entry point. She emphasizes that it’s a process, not a destination, and that small steps can be motivating. She frames the work as a "gift" to family, providing confidence and reducing burdens during difficult times.

IV. The "Gift of Knowledge" and Reducing Family Conflict

Hermy argues that families cannot fulfill wishes they are unaware of. She emphasizes the value of communicating preferences, from sentimental items to funeral arrangements, to avoid disagreements and ease the grieving process. She cites examples of families torn apart by disputes over medical treatment or estate distribution due to a lack of clear direction. She stresses the importance of documenting these preferences in writing, regardless of whether death is anticipated or sudden.

V. Practical Steps: Checklists and Documentation

The discussion details specific practical steps:

• Personal History: Documenting birthplaces, childhood friends, education, career, and significant life events.
• Essential Documents: Maintaining copies of birth certificates, marriage licenses, passports, insurance policies, and financial account information in a secure, accessible location. She recommends both physical and digital copies.
• Financial Power of Attorney: Selecting a trustworthy agent and ensuring they understand their responsibilities.
• Beneficiary Designations: Regularly reviewing and updating beneficiary designations on retirement accounts and life insurance policies. She highlights the tax implications of gifting assets versus inheriting them.
• Medication List: Keeping an updated list of all prescriptions and over-the-counter medications for convenience and emergency situations.
• Digital Assets: Creating a secure list of online accounts, passwords, and login instructions. Utilizing legacy contact features offered by platforms like Facebook, Google, and Apple. She recommends a specific power of attorney for digital access.
• Emergency Box: Preparing a portable box with copies of essential documents for quick access during emergencies.

VI. Avoiding Common Pitfalls: Joint Ownership of Property

Hermy cautions against adding children to real estate deeds, citing potential complications with divorce, bankruptcy, and eligibility for benefits.

VII. Resources and Further Reading

Hermy recommends Beth Pinsker’s My Mother’s Money and her own book, Checklist for Family Caregivers, as valuable resources.

VIII. Technical Considerations & Bank Access to POA

Hermy highlights the ongoing challenge of banks accepting valid Powers of Attorney (POA), emphasizing the need for specific bank forms and proactive communication.

Conclusion

The podcast emphasizes the importance of proactive planning for aging and end-of-life matters. Sally Balch Hermy advocates for a checklist-based approach, emphasizing clear communication, thorough documentation, and the value of simplifying life for both oneself and one’s family. The conversation underscores that planning isn’t just about preparing for the inevitable, but about empowering individuals to maintain control and provide a lasting gift of peace of mind to their loved ones.

Disclaimer: (As stated at the end of the podcast) This recording is for informational purposes only and should not be considered investment advice. Opinions expressed are as of the date of recording and are subject to change without notice. Morning Star is not affiliated with guests or their business affiliates unless otherwise stated.