What does the word “incapacity” mean to you? Do you only associate it with the older generation and serious ailments such as Alzheimer’s disease?
Remember this: anyone, regardless of age or current level of health, could become incapacitated as the result of a serious illness or injury.
For this reason, incapacity planning is a must. With the right plan in place, you’re prepared for anything that comes your way.
Incapacity Planning: Answer These Questions
As you consider what incapacity planning should include, a variety of questions will move to the forefront. Some of the most common include:
- Who do you want to have the legal authority to make healthcare decisions for you?
- Who do you want to manage your finances in the event that you can’t do so?
- Have you made it clear in regards to the type of health care you want to receive?
With an incapacity plan in place, there’s an answer to every question. Conversely, if you don’t take the time to plan for potential incapacity, there’s no way of knowing what will happen. For example, a judge may have to decide which family member is in charge of your finances.
Incapacity Planning Tools
There are a variety of incapacity planning tools that can give you and your loved one’s peace of mind.
A living will, for instance, allows you to make advanced decisions about the type of medical care you want to receive. This takes a lot of stress off your family if you become incapacitated.
A financial power of attorney is another tool to consider, as it outlines who will manage your finances if you’re unable to do so. You can give your agent as much or as little power as you want, with common responsibilities including:
- Paying bills and taxes
- Paying medical bills
- Maintaining insurance coverage
- Collecting compensation
- Managing your bank accounts and retirement accounts
- Managing other assets, such as real estate
There is no good reason to forgo the creation of an incapacity plan. Once you work through the details, you’ll have a clear idea of what will happen if you become incapacitated.
Contact us if you have any questions about incapacity planning or want to get started with the process.