Cognitive problems can be an unfortunate circumstance of getting older for many in New Jersey and elsewhere. Moreover, signs of diminished mental capacity may well make estate planning substantially more difficult, especially for those who are considering who will inherit what and how much from their estate. Those in their later years may thus consider giving a third-party approval to discuss financial issues with people like financial planners and estate lawyers.

A lot of people who work with senior citizens on their estate administration plans use third-party disclosure forms. These forms allow an attorney to speak to those authorized by the client to discuss estate matters if the attorney believes a client is experiencing problems with their memory. However, with any third-party disclosure form, there is always the risk that the third party may improperly use the information given to them. That is why it is so important to begin estate planning when one is healthy and able to make decisions about who is trustworthy.

Yet age is not the only factor in deciding when to use a disclosure form. If someone is involved in an accident or suffers from an illness that incapacitates them, the form could become very important because it allows an advisor or an attorney to reach out to a family member or friend. In addition, in the case of an emergency and when the client is otherwise unreachable, the disclosure form allows the adviser or attorney to speak to a third party immediately.

A disclosure agreement can even be made into a limited durable power of attorney, which is useful if one becomes incapacitated due to an unexpected injury or illness. However, it is also just one of many things that a proper estate planning process requires. In the past, New Jersey residents have often found it helpful to seek the aid of an attorney to assist with matters such as drafting a will, minimizing the impact of taxes on the estate, and with making appropriate dispensations of property.

Source: The Wall Street Journal, "As Population Ages, Disclosure Forms Become Key," Caitlin Nish, Jan. 26, 2012