As you age, there may come a time when you need someone to manage your personal financial affairs and/or health care decisions in case you are incapable of making decisions for yourself. Incapacity can result from a physical or cognitive disability such as alzheimer, stroke, heart attack, and may be temporary or permanent. Planning for incapacity or terminal long-term illness, allows you to be in control of the type of care and treatment you want to receive and provide your family and loved ones guidance about how you want your preferences carried out.

When planning for incapacity, also known as life planning, ask yourself:

What would happen if I suddenly became incapable of making decisions for myself?
Who would I want to manage my finances or pay my bills?
Who do I want to make decisions about my medical and health care treatment?
Would the person I designate to make decisions about my medical and health care treatment be the best advocate for me?

At the Nelson Law Firm, we prepare the following legal documents and other Powers of Attorneys as appropriate for incapacity planning:

• Financial Durable Power of Attorney
• Durable Power of Attorney for Health Care and Living Will (i.e., Advanced Medical Directive)
• Health Insurance Portability and Accountability Act (HIPAA) Authorization

In the absence of the incapacitated person designating a person(s) with legal authority to act on his or her behalf, the probate court will appoint a guardian/conservator. Guardianship, also known as conservatorship, is a court supervised proceeding which names a person or entity to manage the assets – and can include care – of the incapacitated person until he or she recovers or dies. The court has discretion to appoint a spouse, family member or non-relative. This process can be time consuming, expensive, and emotionally draining if those petitioning the court to manage the incapacitated person’s assets are at odds.

There are times when financial institutions may not accept a Financial Durable Power of Attorney, which can be problematic and require probate. In light of this, a Revocable Living Trust may be an effective tool to consider when planning for incapacity, in the context of financial decision-making. A Durable Power of Attorney for Health Care and Living Will and HIPAA Authorization are needed to direct your health care if you become incapacitated.

Contact the Nelson Law Firm to see which plan is right for you. We are here to answer questions you have about incapacity planning and create a plan that addresses your individual needs.