You will invariably think about the way your assets will be transferred after you pass away when the subject of estate planning is mentioned. This being stated, your plan should also address some unpleasant realities that can go along with the aging process that necessitate the need for proactive incapacity planning.

Cognitive Impairment

Everyone has heard of Alzheimer’s disease, but its widespread nature is surprising to many people. This disease strikes over 30 percent of the oldest old, and the population is aging rapidly, so the numbers of cases are expected to increase as time goes on.

Aside from Alzheimer’s disease, there are other causes of cognitive impairment. Over half of people in nursing homes have cognitive difficulties when they pass away, and this is certainly an eye-opening statistic.

Adult Guardianship

In addition to the impact of dementia, there are some people who cannot handle their own affairs because of physical ailments.

If you are unable to make sound decisions at some point in time and you make no preparations in advance, the state could be petitioned to appoint a guardian to act on your behalf. This is a necessary safeguard, but there are some potential drawbacks.

One of them is the fact that people in your family may disagree with regard to the optimal course of action. Plus, at the end of the process, the individual who is selected to be the guardian may not be someone that you would have chosen when you were capable of sound decision-making.

Incapacity Planning First Step: Financial Representation

You can prevent a guardian before it happens if you execute the appropriate legal documents.

A living trust is a very effective estate planning device that provides a number of benefits. If you establish a living trust, you would act as the trustee while you are alive and fully capable. You would name a successor to assume the role after your death.

The successor trustee can also be empowered to manage the trust in the event of your incapacity.

If you use a simple will as your asset transfer vehicle instead of a living trust, you can name a financial decision-maker in a durable power of attorney for property. Even if you have a trust, you can include a power of attorney to account for assets that were never conveyed into the trust.

Advance Health Care Directives

Your plan should also address medical decision-making, and you can do this with advance directives for health care. With a living will, you state your preferences regarding the use of feeding tubes, artificial nutrition, mechanical respiration, and cardiopulmonary resuscitation.

The document can include your comfort care medication and organ and tissue donation choices, and you can address each type of life-support individually if you choose to do so.

To account for situations that are not related to the use of life-support, you can name a representative in a durable power of attorney for health care. A HIPAA release should be added to give your health care agent the freedom to discuss your medical condition with your doctors.

Hospice Care

End-of-life care is intended to make patients as comfortable as they can be during their final days. The care can be received in a nursing home or a private residence, and Medicare will cover hospice care.

Access Our Estate Planning Worksheet!

We invite you to explore our website to take advantage of all the resources that we offer, and you should start with our estate planning worksheet. This tool has been carefully prepared to provide a better understanding of this important process.

There is no charge for this resource, and you can get your copy right now if you visit our worksheet access page and follow the simple instructions.

Need Help Now?

If you take the right incapacity planning steps in advance, you can go forward with the knowledge that your own choices will be honored if incapacity ever strikes. Ultimately, the plan will culminate in the appropriate passing of your legacy.

You can schedule a consultation appointment at our Warren, NJ estate planning office if you call us at 908-222-8803, and you can fill out our contact form to send us a message.

Author
Recent Posts

Alan Augulis

Alan L. Augulis founded his Warren, New Jersey law firm so that he could focus his practice in the areas of estate planning and elder law. Mr. Augulis has invested considerable time and energy helping to educate others on the topic of estate planning and has become a sought-after speaker in the estate planning and elder law arena because of his informative and entertaining seminars... Read More.

Take Control in Advance With These Incapacity Planning Steps