Incapacity planning definitions are provided below from our attorney Richard Gershberg. Our firm hopes that these terms and definions provide you with quality information so you are able to make the best decisions regarding your estate planning needs.
Power of Attorney:
You empower someone else to act on your behalf. Technically, this person becomes your “Attorney in Fact,” but is more commonly referred to as your “Agent.”
General Power of Attorney:
Provides your Agent with broad authority. It says that at any time – and in just about any capacity – your Agent can conduct business in your name. The Agent can be given great discretion.
General Durable Power of Attorney:
This is a General Power of Attorney that remains valid even during your incapacity.
Durable Power of Attorney for Health and Living Will:
These documents authorize termination of life support if you are terminally ill and appoint an Agent, of your choice, to make health care decisions for you if you become incapacitated.
Gifting Language:
Special language that may be drafted and included with your Trust document and Power of Attorney to give authority to gift assets to accomplish planning goals.
Medicaid Triggers:
These “triggers” or events can put into motion the shift of assets out of the name of the person who is incapacitated in order to qualify for Medicaid benefits.
Conservatorships/Guardianships:
This is the court-supervised proceeding which names an individual or entity to manage the affairs of an incapacitated person.
HIPAA Release:
The Health Insurance Portability and Accountability Act of 2003, known as “HIPAA,” created privacy protections for medical information which prevents hospitals and physicians from providing your personal health information to anyone that is not listed in a signed HIPAA Release. This release allows the Agents under your Advance Health Care Directive/Durable Power of Attorney for Health Care, and the Trustees under your Revocable Living Trust to carry out their duties.
Contact Us
These incapacity planning definitions are not to be considered as legal advice. If you have questions about terms that are not listed on this page, please contact our office at (410) 654-3850 and our team will be glad to offer you our assistance. You can also use our contact page to reach out to us.
