Obviously, estate planning helps people address what will happen to their assets after they die. Wills and other estate planning documents can protect dependent family members and reduce the likelihood of conflict among beneficiaries after an individual’s passing. Estate planning can also help people prepare for unpredictable challenges that they may face throughout their lives. Incapacity planning is a beneficial addition to basic estate planning.
Those with dependent family members, people adjusting to life with chronic medical conditions and adults preparing for retirement may need to consider what happens if they become medically incapacitated in the future. How can estate planning help?
People can arrange for support
For many people, incapacity planning involves drafting powers of attorney. Specifically, they may want to establish durable powers of attorney.
Durable documents retain their legal authority even when an individual becomes permanently incapacitated due to dementia or other serious medical issues. With a durable power of attorney in place, an incapacitated individual can rely on a person they selected to act as their agent.
People can plan for expenses
Especially if incapacity is the result of decline due to advanced age, long-term care may be necessary. People preparing for retirement may want to perform Medicaid planning.
They can make adjustments to their personal holdings so that they can quickly qualify for Medicaid when they require long-term care in the future. Planning in advance for long-term care costs can also protect their assets as they age and after they pass.
Thorough estate planning can help people navigate even the most challenging circumstances. Addressing the possibility of future incapacity can help people protect themselves in an uncertain world.