Let’s face it. We all plan to die.
So we buy life insurance to take care of financial responsibilities, or we work hard to ensure that our loved ones are well-covered. A will could be drawn up to take care of asset division, or there could be a strategy in place that will continue to take care of family finances after we are gone.
But do we have a plan for what would happen to us, if we continue to live but are unable to manage our own affairs?
Due to an accident. A medical emergency. An injury. A temporary illness. Or a disease, like Alzheimer’s. All of these are conditions that could cripple us, leaving us out of action and powerless to lead our lives productively. Putting all our dreams and life goals, and our entire daily schedules in jeopardy.
So we must remember, planning for the unexpected is crucial. Closing our eyes to the problem will not make it go away.
INCAPACITY PLANNING: WHAT IT IS AND WHAT WE SHOULD KNOW
When we are physically or mentally unable to take care of our own medical treatment, and financial responsibilities, it can leave us and our dear ones feeling helpless and totally shaken up. And it can happen to anyone of us, regardless of the stage of life we are in.
Although none of us would like to think about this, planning for the unexpected, is also a prime part of estate planning. Incapacity planning is a smart way to prepare for any eventuality; it helps to protect your well-being as well as your assets. It can also help you to keep the court from creating unpleasant situations for you and your family during the crisis.
When we are physically or mentally unable to take care of our own medical treatment, and financial responsibilities, it can leave us and our dear ones feeling helpless and totally shaken up. And it can happen to anyone of us, regardless of the stage of life we are in.
WHY WE NEED AN INCAPACITY PLAN
There are 2 primary reasons. One is to make decisions pertaining to our health and second, to take care of our financial matters.
When you are sick or injured, somebody has to be given the authority to make healthcare and financial decisions for you. Paying your bills, filing your taxes, and managing your medication – are all important tasks that have to be performed by someone responsible.
DOCUMENTS THAT HELP WITH INCAPACITY PLANNING
An incapacity plan needs some documents in place. With a Financial Power of Attorney, you can appoint an agent( someone you can trust) who will pay your bills and manage other finances. With a Medical Power of Attorney, your appointed agent can make medical decisions on your behalf. It would be wise to discuss them with your agent to rule out the confusion. An Advance Medical Directive (or a Living Will) states your end-of-life care decisions – it works side-by-side with a Medical Power of Attorney, but both of these are not interchangeable. The HIPAA Release makes it easy for your medical team to convey important details to your family, especially to the medical decision-maker.
COVID-19, OUR CHILDREN AND INCAPACITY PLANNING
We cannot stress enough, how critical it has become to have an incapacity plan with all the above documents in place, especially in the current Covid-19 scenario. If you have children 18 years or over, it becomes even more important. Once children turn 18 years of age they become legal strangers, and without the correct documentation, you as a parent no longer have the right to find out about their condition, direct their treatment or take care of their finances.
Hopefully, you may never need an incapacity plan. But, if you do, you will have earned the infinite gratitude of your family to have created it.
LET US TAKE CARE OF ALL OF THIS. FOR YOU.
With seasoned attorneys at Grey Dog Law by your side, you can be assured of a faithful guide to help you navigate all the intricacies of estate planning. Incapacity planning is an important part of estate planning, and we are here to help you create all the necessary documents and establish all the necessary safeguards in the estate planning process, so that your family moves on as normally as possible, even in the face of major life changes.
We invite you to schedule a consultation.
