The value of an elaborate estate plan is often understood by a person when he/she enters the old age bracket. The phenomenon of death and mortality begins to sound more realistic, as the body and mind does not function as actively as before. The possibility of a chronic illness, or a mental/physical disability is also a growing concern among seniors. They worry that who will take care of them and their estate when their health no longer allows them to do it themselves.
Unfortunately, there is so specific time for death or incapacity; both can happen at any given period, regardless of a person’s age or health condition. For example, many youngsters and adults incur fatal injuries in car accidents every day, and some of them are left incapacitated for life. Less than half of the U.S population has a legally approved estate plan. Moreover, most of the people who possess an estate plan have limited it to the basics, such as the last will and testament.
Incapacity planning is not something many people want to think about or act upon. It seems like an insignificant or frivolous expense when a person in physically and mentally fit. Elder Law Attorney in Massachusetts conveys that is necessary to comprehend that a plan for incapacity can solve a lot of problems in the event of unexpected grievances; it promises excellent management of your health and assets when you need it most. It will grant peace of mind to you and your family in critical times, whilst saving a lot of time and money.
Essential Documents for Incapacity Planning
Start planning for incapacity while you are still capable and eliminate hardships for yourself, as well as your loved ones in the future. Work with an experienced estate planning lawyer to prepare the following documents:
1. Living Will
The living will, also known as an advanced directive, communicates how you wish to be taken care of in a case of a medical emergency. You can choose the type of healthcare treatment that shall be given or withdrawn, should you lose consciousness. This document is only effective while you are alive, yet not capable of making healthcare decisions for yourself. The purpose is to ensure your comfort and take the burden off your loved ones.
2. Durable Power of Attorney
The durable power of attorney allows you to designate a reliable and trusted individual to manage your financial affairs. This individual obtains the authority to make financial decisions on your behalf while you are incapacitated. Duties include payment of bills, filing tax returns, managing investments, and handling business transactions. The durable power of attorney will become ineffective upon your death.
3. Medical Power of Attorney
The medical power of attorney or healthcare proxy is a legal document that lets you nominate someone to take charge of your medical treatment when you are disabled. The elected person gains exclusive rights to choose suitable treatments/procedures and make important healthcare decisions for you.
4. Revocable Living Trust
The revocable living trust helps you protect your estate from the lengthy and costly probate process, so your heirs can gain easy and immediate access upon your death. The person who manages the assets of the trust is called the trustee, who is essentially also the creator (which is you). You can appoint a successor trustee to take over management in case you become incapacitated.
5. HIPAA Authorization
HIPAA Authorization is a legal document that allows your doctor or healthcare provider to release confidential medical information to your loved ones, i.e. your friends, family, and relatives do not have to be kept in the dark.
