The estate planning process provides resources to allow estate planners to make a plan for incapacity. Preparing for incapacity is one of the many purposes of the estate planning process and one of the many reasons it is important to understand what the process is and how to engage in it.
There are two types of incapacity to prepare for. One type of incapacity is to prepare for if the estate planner is unable to make financial decisions for themselves. The second type of incapacity to prepare for is if the estate planner is unable to make healthcare decisions for themselves. Estate planning tools can help estate planners prepare for both situations.
Financial incapacity
There are a couple of different types of estate planning documents that can help estate planners plan for financial incapacity. A financial power of attorney designates an agent to handle the estate planner’s financial affairs including paying bills, making financial decisions, managing investments, filing tax returns, mortgaging and selling real estate and handling other financial matters included the power of attorney document. A living trust can also be beneficial to have if the estate planner becomes incapacitated.
Healthcare incapacity
There are a couple of different types of estate planning documents that can help estate planners plan for when and if they are unable to make healthcare decisions for themselves. A medical power of attorney gives an agent the authority to make healthcare decisions for the estate planner if they are incapacitated. A living will spells out the estate planner’s wishes related to life-ending and life-sustaining medical treatments.
Estate planning serves many purposes. One important purpose of estate planning is to plan for incapacity which is something estate planners should take seriously.
