Yes, asset transfers are at the core of the estate planning process. At the same time, you should see a complete picture and prepare for eventualities that you may face toward the end of your life. Incapacity planning should be part of your plan, and you will see why when you understand the facts.
Anticipated Longevity
Your golden years can be full of the good times you have always envisioned. You can travel, cross things off your bucket list, enjoy leisure activities, and spend a lot of time with your family and friends.
This is as it should be, and you deserve a reward for all of your hard work. When you are going through this stage of life, you may feel pretty capable. However, things can be very different when you are in your 80s.
If you think that this type of longevity is the exception rather than the rule, you should understand the facts. The life expectancy for a woman who is turning 67 today is 87 years, and it is 85 years for a man.
Alzheimer’s Disease
We are all aware of the existence of Alzheimer’s disease, but many people are really surprised when they find out how common it has become. The Alzheimer’s Association website is a great source of information on the subject, and it can point you toward resources if your family has been touched by the disease.
According to research they cite, 32 percent of people who are 85 years of age and older have contracted Alzheimer’s. This is not the only cause of cognitive impairment, so when you combine longevity statistics with this fact of life, a clear picture emerges.
What Do You Do?
If you do no advance incapacity planning and you become unable to handle your own affairs, the state could appoint a guardian to act as your representative. The person that is chosen may not be someone that you would have selected yourself, and family members may not be on the same page.
You can nip these negatives in the bud if you proactively include an incapacity plan within your broader estate plan.
Incapacity Planning Documents
One of the benefits that you gain if you use a living trust is the ability to prepare for incapacity. You would act as the trustee while you are alive and well, and you can name a disability trustee who would assume the role if it becomes necessary.
Another incapacity planning tool is the durable power of attorney for property. The agent that is named in this document would be empowered to manage personally held property that has not been conveyed into a trust.
Advance directives for health care will also be part of an incapacity plan. With a living will, you state your preferences about the use of life-sustaining measures. You can also include your organ and tissue donation preferences in your living will.
There can be decisions that must be made that have nothing to do with life-support, and to account for this, you can add a durable power of attorney for health care.
Due to provisions contained within the Health Insurance Portability and Accountability Act (HIPAA), doctors cannot discuss medical conditions with anyone other than the patient. To give your agent the ability to have these conversations, you should include a HIPAA release.
Schedule a Consultation Today!
If you would like to put a comprehensive estate plan in place that includes an incapacity planning component, today’s a good day to take action.
You can schedule a consultation at our Westport or Glastonbury, CT estate planning offices if you call us at 860-548-1000. If you would prefer to send us a message, fill out our contact form and we will get back in touch with you promptly.
In May 2023, Diana M. O’Rourke joined Nirenstein, Horowitz & Associates, P.C. as an associate attorney in the trust administration department.Diana has five years of experience practicing in the areas of estate administration, estate planning and elder law.She is admitted to practice in the State of Connecticut and is a member of the Connecticut Bar Association, where she is part of the Estate & Probate section and the Elder Law section. She is also a member of the American Academy of Estate Planning Attorneys.