Incapacity is an important thing to plan for and several estate planning tools can help estate planners address those concerns in their estate plan. Estate planners should be familiar with their options for building their incapacity plan to protect themselves and their families.
There are several components of an incapacity plan that estate planners should take into account when planning. They should ask themselves the question who they would want to manage their financial affairs if they were unable to do so for themselves. They should also ask themselves who they would want to manage their medical care if they were unable to do so for themselves.
To appoint a trusted agent to manage their financial affairs for them, the estate planner should include a power of attorney for financial affairs as part of their incapacity plan included in their estate plan. A revocable living trust can also be helpful to set up for the management of the estate planner’s financial affairs.
To appoint a trusted agent to direct their medical care for them, the estate planner should include a power of attorney for their medical care and treatment as part of their incapacity plan. The estate planner may also want to consider including a living will or advance healthcare directive as part of their incapacity plan which can specify the types of medical care and treatment, including end-of-life medical care and treatment, the estate planner wishes to receive or does not wish to receive.
Estate planning helps estate planners address a variety of different concerns, including what will happen and how their family will handle it if they become incapacitated. Addressing those concerns in advance can be helpful down the road for both the estate planner and their loved ones. For that reason, it is helpful to be familiar with how to build an incapacity plan as part of an estate plan.