The Critical Need for Disability Planning in Estate Planning

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Estate planning often centers on the critical question of what happens after death. However, an equally, if not more important, consideration is planning for the possibility of disability. With the increase in life expectancy and the aging population, the risk of becoming disabled through illness, injury, or simply the natural progression of age is more significant than ever. The Disability Statistics Center of the University of California at San Francisco highlights a notable rise in the U.S. population’s disability rate over the past quarter-century, a trend that’s expected to continue.

The implications of becoming disabled without a plan are dire, potentially leading to family disputes, court interventions, and significant emotional and financial strain. Here are some critical questions to consider:

Plan

– Who decides my living arrangements? Without prior planning, a court-appointed guardian makes this decision, potentially someone you wouldn’t have chosen.

– Who makes medical decisions on my behalf? Without consensus among family members, the decision may fall to a guardian appointed by a judge.

– Will I be kept on life support indefinitely? Without clear, written directives, the default action in most states is to maintain life support.

– How will my bills and taxes be paid? A guardian appointed through a potentially costly and emotionally taxing court process would manage these affairs, reporting to the court throughout your disability.

– What about urgent financial decisions or personal obligations? Without a designated decision-maker, swift action on financial matters or personal obligations like tuition payments can be significantly delayed.

The solution lies in proactive planning. For instance, implementing a Revocable Living Trust allows a Successor Trustee to manage your investments, sell assets, and pay bills without court involvement. A General Durable Power of Attorney further ensures any assets outside the trust are managed effectively, and an Agent can act on your behalf for various matters, including tax filings. A Health Care Power of Attorney empowers a chosen individual to make health care decisions for you, reflecting your wishes regarding life support and other medical treatments.

These planning tools—A Revocable Living Trust, a General Durable Power of Attorney, and a Health Care Power of Attorney—offer comprehensive protection in the event of disability. They ensure your wishes are respected, reduce the burden on your loved ones, and eliminate the need for court intervention.

Consulting with an experienced estate planning attorney can guide you through setting up these essential protections, ensuring that you’re prepared for not only the eventuality of death but also the potential challenges of disability.

Contact the McGee Law Firm, located in Southlake and Fort Worth, Texas. 

From the desk of Attorney Brandon McGee, McGee Law Firm

Brandon McGee
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