If you have an incapacity plan, it’s critical to understand what you’ve included and if there is any room for improvement. Conversely, if you don’t have an incapacity plan, now’s the time to take action. Neglecting to do so puts you at risk if you ever become incapacitated and unable to manage your own affairs.
There are many important aspects of an incapacity plan, with these at the top of the list:
- Revocable living trust: With this, you can maintain control over the assets in the trust while you’re living. And upon your passing, your assets go directly to your beneficiary, as opposed to first through the probate process. With a living trust, you must name a trustee to manage it if you become incapacitated.
- Durable general power of attorney: If you’re unable to manage your own financial affairs, you need someone to step in and do so on your behalf. Responsibilities can include things such as investing, managing real estate, paying bills, opening and closing bank accounts, and maintaining insurance coverage.
- Advance directive: When you can’t speak for yourself, you can’t tell your medical team what type of care you want to receive. An advance directive can help by allowing you to make key decisions regarding medical treatment in advance. This way, you know you’ll receive the right care — even if you can’t express yourself.
Without an incapacity plan, the court may have to step in to make decisions regarding your care. That could lead to a situation in which the wrong person is in charge of your money and/or managing your medical care.
If you need to create an incapacity plan or review what you already have in place, contact our law firm to set up a consultation. We’ll help you create an incapacity plan that puts your mind at ease.
- Common Mistakes in Estate Planning - March 16, 2023
- How to Conduct an Estate Plan Review - March 15, 2023
- What Happens When You Don’t Trust Your Trustee – Part I - March 14, 2023
