AN UNEXPECTED CONSEQUENCE OF DEMENTIA: MORE LITIGATION
The numbers and statistics are unmistakable. In the year 1900, there were approximately three million people in the United States who were 65 years or older. That was about 4% of the population. By 2010, those numbers had increased to more than 40 million people, and more than 13% of the population, and the projections simply go upward.
In 2010, there were about five million people suffering from Alzheimer’s disease; it is projected that within 40 years, that number will increase to nearly 20 million.
We have heard much discussion about the medical and social consequences of dementia. However, there is an increasing consensus among attorneys that there will also be a significant increase in estate litigation. The factors for this can be described as:
- People in their 80’s and 90’s are transferring substantial wealth.
- Baby boomers are starting to turn 70 years of age.
- The number of retired people in this country has never been greater.
- Because of blended marriages (divorce, second and third marriages) there are more and more families with step-children which can lead to tensions within some families.
- More people now own their own retirement accounts, like IRA’s, with the opportunity to name beneficiaries, rather than company pension accounts, which did not pass on to survivors.
There will be many instances where this will simply lead to litigation. Whether it is litigation concerning one spouse’s right to transfer assets to his or her own children, or capacity to transfer assets, based upon dementia or other illnesses, cases of undue influence, or elder abuse, the warnings are unmistakable, that there will almost certainly be a massive increase in litigation over these issues in the coming years.
There are things that you can do. It will be increasingly important to do advance planning, including such things as Powers of Attorney, Trusts, Marital Property Agreements and the like. The failure to do such planning could be disastrous.
Respectfully Submitted
Attorney Peter E. Grosskopf