Many adults have no estate plan whatsoever. As such, even the decision to draft a will can put an adult ahead of the curve when compared with the average adult in West Michigan. That being said, people often benefit from creating comprehensive estate plans with additional documents.
Planning for the possibility of incapacity in the future can be as important as planning for death. While most people never experience protracted periods of incapacity, those who do need support from others. The three estate planning documents outlined below can help people protect themselves and connect with appropriate support if they ever experience temporary or even permanent incapacitation.
Financial powers of attorney
An individual rendered incapacitated due to unconsciousness or severe medical challenges cannot work or pay their bills. They are at risk of financial hardship unless someone else can manage their affairs for them. Married people can typically rely on their spouses. However, unmarried adults and those with complex financial circumstances, such as small business owners, may need to arrange to have someone other than a spouse manage their finances. Financial powers of attorney can authorize a trusted agent or attorney-in-fact to oversee specific financial matters on behalf of the incapacitated individual.
A living will
A last will and testament is a document that describes someone’s wishes regarding their legacy and the support of their dependents when they die. A living will explains their preferences regarding medical care in the event of an incapacitating emergency. People can talk about their unique medical preferences that may have a basis in their religion or their long-term medical prognosis. Some people feel very strongly about resuscitation or life support, for example. A living will allows the person drafting it to clarify what types of treatment and medical interventions they want if they cannot oversee their own care.
Durable medical powers of attorney
Traditional or basic powers of attorney lose their authority when a person becomes permanently incapacitated. Durable powers of attorney can remain in effect despite permanent incapacitation. Durable medical power of attorney documents allow people to select someone other than a spouse to oversee their care. Such documents can be particularly beneficial for those who are experiencing medical emergencies or preparing for retirement. Particularly if Alzheimer’s disease runs in the family, preparing for the possibility of permanent incapacitation can be a smart move.
Expanding an estate plan to include powers of attorney and other advance directives can provide protection and peace of mind. Those establishing or expanding their estate plans may need help ensuring that their documents comply with the law and align with their wishes, and that’s okay.