PEACE OF MIND
You can help create peace of mind this holiday season.
When it comes to estate planning, most people automatically think about taking legal steps to ensure the right people inherit their stuff when they die. Although that thought is not wrong, it also leaves out a very important piece of planning for life.
Consider that at some point before your eventual death, you could be incapacitated by accident or illness.
Like death, each of us is at constant risk of experiencing a devastating accident or disease that renders us incapable of caring for ourselves or our loved ones. But unlike death, which is by definition a final outcome, incapacity comes with an uncertain outcome and timeframe.
Incapacity can be a temporary event from which you eventually recover, or it can be the start of a long and costly event that ultimately ends in your death.
Where to start
Planning for incapacity requires a different mindset and different tools than planning for death.
If you’re incapacitated by illness or injury, you’ll still be alive when these planning strategies take effect. What’s more, the legal authority you grant others to manage your incapacity is only viable while you remain alive and unable to make decisions about your own welfare.
To this end, the first thing you should ask yourself is, “If I’m ever incapacitated and unable to care for myself, who would I want to make decisions on my behalf?”
You’ll be selecting the person, or persons, you want to make your healthcare, financial, and legal decisions for you until you either recover or pass away.
You must name someone
The most important thing to remember is that you must choose someone. If you don’t legally name someone to make these decisions, the court will choose someone for you.
In the absence of proper estate planning, the court will typically appoint a guardian or conservator to make these decisions on your behalf. This person could be a family member you’d never want managing your affairs, or a professional guardian who charges fees and doesn’t know you. Either way, the choice is out of your hands.
An effective plan would give the individuals you’ve chosen immediate authority to make your medical, financial, and legal decisions, without the need for court intervention. What’s more, the plan can provide clear guidance about your wishes.
Proper tools for the job An incapacity plan is a comprehensive variety of multiple planning tools, each serving a different purpose and should include some, or all, of the following:
• Healthcare power of attorney. An advanced directive that grants an individual of your choice the immediate legal authority to make decisions about your medical treatment in the event of your incapacity.
• Living will. An advanced directive that provides specific guidance about how your medical decisions should be made during your incapacity.
• Durable financial power of attorney. A planning document that grants an individual of your choice the immediate legal authority to make decisions related to the management of your finances, real estate, and business interests.
• Revocable living trust. A planning document that immediately transfers control of all assets held by the trust to a person of your choosing to be used for your benefit in the event of your incapacity.
The trust can include legally binding instructions for how your care should be managed and even spell out specific conditions that must be met for you to be deemed incapacitated.
Don’t let a bad situation become much worse You may be powerless to prevent your potential incapacity, but estate planning can at least give you control over how your life and assets will be managed if it does occur.
Moreover, such planning can prevent your family from enduring needless trauma, conflict, court intervention, and expense during an already trying time.
This article is a service of Law Office of Lasca A. Arnold, PLLC. We ensure you make informed decisions for yourself and the people you love.
You should ask yourself, “If I’m ever incapacitated and unable to care for myself, who would I want to make decisions on my behalf?”
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