Life is unpredictable, and you may get into a situation that affects your ability to make reasonable decisions regarding your financial and personal matters. You could get into an accident and suffer a traumatic brain injury or develop Alzheimer’s due to old age.
While you may not want to experience incapacitation and are probably doing everything in your power to avoid it, nothing is certain. That’s why it’s recommended to plan for incapacitation.
So, how do you do this?
You draft an advance health care directive
An advance health care directive is an estate planning document that allows you to list the medical treatments that can be administered and those that should be avoided.
This document also allows you to name someone to make health care decisions on your behalf (an agent). They will ensure the wishes you listed are respected and make other decisions. Due to the sensitivity of their role, you want to choose someone you trust who is willing to serve.
Before listing your medical wishes, obtain more information about your health from your physicians. It can also be beneficial to talk to your loved ones about your wishes before making them official.
You draft a durable power of attorney
Since incapacitation can also affect your ability to make financial decisions, you need a durable power of attorney. This estate planning document allows you to give another person the authority to make legal and financial decisions on your behalf.
This party can be any adult you trust – your spouse, your sibling, your close friend, an attorney, a bank etc. They will manage your property. For example, they can sell, lease, mortgage or purchase real estate property on your behalf.
Planning for incapacitation is a crucial part of estate planning. Get legal guidance to determine the documents you need and how to validate them.
