Why It's Essential To Plan For Incapacity

Most assume that estate planning is solely about writing wills and trusts to make sure assets and property are distributed according to your wishes.

Although incapacity planning is often overlooked, it is essential to address what happens if you are unable to make medical decisions or handle your financial affairs.

Wishes regarding favored medical treatment may be made known by executing an advance directive, as this set of documents expresses your healthcare wishes. A healthcare directive is very similar to a living will; however, living wills take effect only when your death can no longer be delayed by treatment. Alternatively, healthcare directives become effective as soon as you are unable to speak for yourself.

Healthcare directives allow you to express the kinds of medical treatments that should be employed or withheld. For example, you may specify that you would not want surgery, respirators, or other life-prolonging procedures to be used if there is not a reasonable expectation of your recovery. It is important to know that once you have executed a healthcare directive, you have the option to make updates or revoke it at any time.

Healthcare Power of Attorney

Because a healthcare directive cannot address every situation that might arise, it is also a good idea to draft and execute a healthcare power of attorney. A healthcare POA allows you to designate an agent to make healthcare decisions on your behalf should you become unable to communicate your own personal healthcare wishes.

You can specify that your agent is to make healthcare wishes according to what is stated in your healthcare directive. If your healthcare directive does not address a the specifics of a particular situation, you can direct your agent to make a decision based on the credentials you have provided, or based on their knowledge of your wishes.

In addition to making healthcare decisions on your behalf, your agent has the ability to:

• Check you in/out of hospitals and medical facilities
• Receive information about your medical status
• Hire and fire medical staff in charge of your care
• Receive and review medical records

Durable Power of Attorney

If you become incapacitated, a durable power of attorney allows your designated agent to manage your financial needs.

Even though you may have complete control over which matters your agent can manage, most people who execute this type of document empower their agents to pay their taxes, take care of their bills and manage any additional financial affairs they may have (stocks, bank accounts, etc.)

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