There is a great deal of information online about planning for end-of-life or incapacity and a few misperceptions about whether or not you need it. Most of us may mistakenly believe we do not need power of attorney or a living will until we are much older.
In many forms, end-of-life planning often gets set aside as we believe we will have plenty of time to do so. Unfortunately, there is no predicting the future and what it may bring. In a perfect world, accidents and circumstances surrounding our lives and health would never be something to worry about. Unfortunately, our lives and our world are imperfect.
The best time to ensure you and your family's financial and healthcare affairs are in order is now, as Americans are living longer and the potential for long-term care arises. Today, we'll discuss planning for incapacity, powers of attorney, and living wills.
What is Incapacity Planning?
Incapacity planning is about ensuring your long-term and end-of-life care and strategies are adhered to while providing your family with the financial resources to carry out your instructions and carry on through the significant medical expenses that can accumulate.
Without incapacity planning, there is a significant risk that someone else, or the courts, can make these decisions for you and your family. Failure to plan can also mean your family having to fight to have a say in your care or financial disruptions that lead to uncertainty or the inability to care for you during an emotionally devastating time.
The Essentials of Incapacity Planning
You should have a few crucial documents for managing your health and financials during incapacity. You will need a durable power of attorney, a designated healthcare surrogate, and a revocable living trust.
- Durable Power of Attorney
A Durable Power of Attorney is a legal document that empowers another individual to continue your financial affairs if you can no longer communicate or become disabled or incapacitated. Without this document, one of your loved ones or family members may have to petition a court to be appointed guardian or conservator to make decisions for you when you cannot. This is a time-consuming and costly process, often thousands of dollars, during an already emotionally and possibly financially draining time.
- Designation of Healthcare Surrogate
This document names the right person to make healthcare decisions on your behalf should you no longer be able to. This document can make many aspects quicker and more accessible in many different areas. Not only is it essential to have a healthcare surrogate, but your appointed surrogate must know your wishes well in advance; otherwise, your surrogate will need to decide and guess what is in your best interest. Any competent adult at least 18 years old can be your healthcare surrogate. Most choose a spouse or close family member.
This document generally must be signed, dated, and witnessed in your presence. The witnesses must be two adults and cannot be your designated surrogate, and at least one witness must not be a spouse or blood relative.
- Revocable Living Trust or Living Will
A revocable living trust or a living will are generally the same. The only difference is that the contents of a living will and how any assets are divided is public knowledge. This means anyone interested can go to a courthouse and review probate filings.
A revocable living trust ensures that upon your incapacitation or death, all details of what you leave to whom are entirely private.
A revocable living trust should not be considered an alternative to power of attorney. While a living will or a will is applicable upon your death, a revocable living trust can help you while you are still alive. A revocable living trust, once established, can be amended during your lifetime and is essentially a legal agreement made between you, the trustee, that leaves clear instructions on how the assets in your trust will be held, invested, and distributed both during your life and after your death.
How a revocable living trust can help you in the event you become incapacitated is that the successor trustee you name will be authorized to write checks, pay bills, and manage your investments when you are unable to, all without having the trustee obtain a court order.
Should You Choose Online Documents or a Law Firm?
While it is tempting to go with the convenience of online document preparation services to assist with your end-of-life and incapacitation planning, we highly recommend researching and visiting a law firm in person if possible.
Online documentation often lacks information on explaining legal terms, and having an experienced, well-reviewed attorney by your side can ensure you avoid many common pitfalls. Unlike online services, attorneys can also ask you questions to learn more about your goals and uniquely tailor your revocable living trust.
Planning for incapacity is not simply necessary for the wealthy or older adults. They are for everyone who wants to maintain control over their end-of-life medical care and wishes to guarantee they do not burden their loved ones when they may already be overwhelmed.
At Legacy Headstones, we wish to see all of our customers have the information and tools they need to safeguard their legacy.