Contrary to popular belief, estate planning is not purely a financial endeavor. Yes, you have to facilitate asset transfers after you’re gone, but the eventualities of aging should be addressed as well. Let’s look at the subject of incapacity planning and some actionable steps that can be taken.
Incapacity Among Elders
It is hard to wrap your head around something you have never experienced, and aging fits into this category. Your golden years can be among the best years in your life as you relax and cross things off your bucket list, but the twilight years are in a different category.
Over 30 percent of people that are 85 years of age and older have Alzheimer’s disease according to the Alzheimer’s Association. People with dementia cannot make sound decisions on their own, and Alzheimer’s is not the only cause of cognitive impairment.
Of course, other serious ailments can impair your decision-making capabilities when you reach an advanced age. Your life expectancy is 85 years if you are a 67-year-old man, and it is 87 years for a woman, so this is something everyone should take seriously.
Adult Conservatorship
If you do nothing to prepare for possible incapacity, you are taking a big risk. Under those circumstances, the state could be petitioned to appoint a conservator to act on your behalf.
This is a necessary safeguard, but most people would want to choose their own decision-maker. Plus, members of your family may not agree on the correct course of action. This can cause hard feelings during a difficult time for everyone concerned.
Proactive Incapacity Planning
Fortunately, with proper advance planning, you can prevent a guardianship proceeding and proactively take the matter into your own hands. When you embed an incapacity component within your estate plan, you will go forward with peace of mind.
Financial Matters
For financial decision-making, you can include a durable power of attorney for property. The “durable” qualifier is key because this type of power of attorney will remain in effect upon your incapacity.
Living trusts are very popular among people who understand the benefits that you gain with this type of trust. One of them is the ability to prepare for incapacity. You would be the trustee while you are alive and well, and you would name a disability trustee to assume the role should the need arise.
Advance Directives for Health Care
To address the medical part of the equation, you can add a durable power of attorney for health care. This can be the person who will act as your financial representative, or you can name someone different.
A living will is a document that is used to state your preferences regarding the use of life-support. You can add organ and tissue donation and comfort care medication choices as well if you choose to do so.
Another piece to the puzzle is the HIPAA release. Due to provisions contained in the Health Insurance Portability and Accountability Act, doctors must keep your medical information confidential. This release will give your chosen representative the necessary access to information such as lab results and prescriptions.
One final piece of insight regarding the HIPAA release. These regulations apply to all adults, even those who have just reached the age of 18.
As a result, if you have an 18-year-old child that is away at college, and they are injured in an accident, the doctors would not be able to discuss their condition with you. With this in mind, you may want to encourage your young adult children to sign HIPAA releases.
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Take Action Today!
Our doors are open if you’re ready to work with a Chico, California estate planning lawyer to put a plan in place. As you can see from this post, a living trust can be a good option for many people, but it is not the only possibility.
There is no cookie-cutter, one-size-fits-all estate plan that is right for everyone. Your plan should be constructed to suit your specific needs, and this is why it is important to work with an attorney.
When you choose our firm, we will gain an understanding of your family dynamic, your financial situation, and your legacy goals. Recommendations will be made based on the circumstances, and you’ll be in a position to make fully informed decisions.
At the conclusion of the process, you will go forward with a tailor-made plan that is ideal for you and your family. Over time, if revisions are necessary, we will be just a phone call away, and we can also be engaged to assist your family during estate administration case.
You can send us a message to request a consultation appointment at our Chico, California estate planning office, or we can be reached by phone at 530-343-3454. We look forward to hearing from you!