Providing for Incapacity

Financial Affairs.  If you become incapacitated, you will not be able to manage your own financial affairs.  Many are under the mistaken impression that their spouses or adult children can automatically take over for them in case they become incapacitated.  The truth is that in order for others to be able to manage your finances, they must petition a court to declare you legally incompetent or incapacitated.  This process can be lengthy, costly and stressful.  Even if the court appoints the person you would have chosen, she may have to come back to the court every year and show how they are spending and investing each and every penny of your money.  For those reasons, if you want a family member or other person to be able to take over for you immediately and without delay and expense, you must designate a person or persons that you trust in proper legal documents so that they will have the authority to, for example, withdraw money from your accounts, pay bills, take distributions from your IRAs, sell stocks, and refinance your home.  A will does not take effect until you die and a power of attorney may be insufficient. 

Health and End of Life Decisions.  In addition to planning for the financial aspect of your affairs during incapacity, you should establish a plan for your medical care.  The law allows you to appoint someone you trust, such as a family member or close friend, to make decisions on your behalf about medical treatment options if you lose the ability to decide for yourself.  You can do this by using a durable power of attorney for health care wherein you designate the person to make such decisions.  In addition to a power of attorney with advance medical directives, you should also have a living will which informs others of your preferred medical treatments such as the use of extraordinary measures, should you become permanently unconscious or terminally ill.