There is no magic spell to help prevent life’s unexpected surprises. However, there are some simple steps you can take to ensure that you are prepared to handle a sudden illness or life-threatening injury. At the top of this list of steps is incapacity planning. The term itself may sound a bit scary, and most Floridians seem to find any excuse to avoid thinking about the prospect of their death. But the reality is that your future without an incapacity plan is even scarier. Below is a look at the key aspects of incapacity planning and the key to ensuring you are prepared for what may lie ahead.
What exactly is incapacity planning and why is it so important?
Incapacity planning is a process that involves the preparation of customized legal documents to authorize people of your choosing to handle your health care choices and financial/legal/digital decisions on your behalf in the event that you are not able to do so yourself. There are two primary reasons why this type of planning is so important:
To ensure that health care decisions are made on your behalf in a way that is consistent with your beliefs and preferences.
To make sure that any financial decisions made while you are incapacitated reflect your wishes and are made by a person you trust.
When do people begin thinking about an incapacity plan?
An incapacity plan is not like income taxes, a mortgage, or an insurance premium. There is no due date set in stone. But like a late house payment or failure to file your taxes, there is a host of unpleasant consequences if you fail to create a plan. While timing varies from person to person, most people begin to think about incapacity planning when someone in their inner circle unexpectedly has a life hiccup.
Who benefits from incapacity planning?
Everyone. When you are knee-deep in the planning process, you may feel that you are focusing a lot of time and energy on yourself and your preferences. But the truth is you are doing a favor for your loved ones, as well as legal authorities. Without an incapacity plan, your loved ones could be left in the uncomfortable position of being unable to help you or make decisions on your behalf. But with an incapacity plan, you erase any uncertainty and provide a legal framework within which your friends and family can act on your behalf.
What documents are involved with incapacity planning?
All the planning in the world is useless unless you have completed the proper legal paperwork needed to back up your plans. My website highlights some key documents that everyone should have:
- Durable Power of Attorney (DPOA): This document grants broad decision-making power to a person of your choosing, also known as an agent.
A living will: Also called an Advanced Care Directive, a living will, allows you to decide, in advance, what life-sustaining treatments you want provided (or withheld) if you are in a terminal or end-stage condition with no reasonable hope of surviving. - Digital Asset Worksheet: This give your digital Agent in the information he/she will need to access your accounts and information located on the internet or through secure portals.
- HIPAA: Allows a trusted family member or friend to transmit your medical records electronically.
In addition to these documents, there are others that may apply to your unique situation. If you are not sure whether you have all the relevant documents you need, ask me. You may discover you have omitted critical paperwork or have documents that would not hold up in court.
What is the key to ensuring you are prepared for the future?
Planning for your future today is vital to ensuring that your best interests are protected if you are incapacitated. The best way to make sure you are prepared for the future is to hire an attorney to help guide you through the drafting. As I shared last night I would consider it an hour to review all of your documents to confirm they are comprehensive, current, and recognized under state law. With the expertise of an estate planning attorney, you can experience peace of mind knowing that your plans and wishes are clearly and legally conveyed.
Watch this video about Emergency Preparedness.
https://www.youtube.com/watch?v=ybfyiD6-LJU