Incapacity planning assistance is the key to a comprehensive estate plan. Far too many people think that estate planning is confined to monetary matters. Yes, you have to facilitate asset transfers to your loved ones, but there is another element. Incapacity planning is key, and you will understand why when you digest some relevant statistics.
Life Expectancies
You may have heard that the average life expectancy in the United States is 78 years. This figure includes young people that pass away far before their time. The number gets larger if you confine the sample size to older individuals.
The Social Security Administration has a life expectancy calculator on its website. If you use it to measure the life expectancy for a woman who is celebrating their 67th birthday today, you will see that her life expectancy would be 87 years.
For a man, the number would be a couple of years younger, but the same point is made. If you expect to live long enough to collect Social Security, you will probably experience life as an octogenarian.
Eventualities of Aging
As you start to reach the end of your life, incapacity becomes a very real possibility. While it is not the only cause of incapacity, Alzheimer’s alone is enough to get your attention. The Alzheimer’s Association tells us that over 30 percent of older adults have the disease.
North Carolina Adult Guardianship
The state can be petitioned to appoint a guardian to act for you in the event of your incapacity if you take no action in advance. This is a necessary remedy, but there are significant drawbacks when a guardianship proceeding is initiated.
First and foremost, the person that is chosen to be your guardian may not be the individual you would have selected yourself. Secondly, members of your family may not agree with regard to the right course of action. This can lead to ongoing hard feelings during a difficult time for the family.
Proactive Incapacity Planning Assistance
Fortunately, you do not have to surrender control of your future and hope for the best. Your estate plan can include a carefully prepared incapacity planning component.
Advance Directive and Power of Attorney for Healthcare
Your incapacity plan should include an advance directive for healthcare (also called a “living will”). With this type of will, you assert your preferences regarding the use of life-support techniques like artificial hydration and nutrition, mechanical respiration, etc.
Your Power of Attorney for Healthcare appoints someone of your choosing to make healthcare decisions for you if you cannot make them for yourself. The Power of Attorney for healthcare can also include your wishes regarding pain relief medication, religious beliefs or preferences, disposition of remains, and organ and tissue donations.
This agent under your Power of Attorney for Healthcare would not be able to access your medical information unless you also sign a HIPAA release form. When you have covered these three bases, you take control of your healthcare decisions in advance.
Financial Representatives
There is also the financial part of the equation. The revocable living trust is a commonly used estate planning device that is the right choice for a wide range of people. One of the benefits while you are living is the fact that you can be the trustee, maintaining control of the assets.
When you draw up the trust declaration, you can name a disability trustee. This individual or professional fiduciary with step into the role if it becomes necessary due to your incapacity.
For property that is not held by a trust, you can include a durable power of attorney for property. The “durable” designation is significant because a durable power of attorney will remain in effect upon your incapacitation.
Schedule a Consultation Today!
For incapacity planning assistance, our doors are open if you are ready to put a plan in place. You can send us a message to request a consultation appointment, and we can be reached by phone at (704) 610-4276 (press option 2).