Estate Planning for Disability: Is Your Future Protected?

Incapacity or disability planning is an important part of your estate plan. It is vital to the well-being of both yourself and your loved ones that your estate plan effectively guards against the possibility of disability or incapacity.

Most people think about estate planning and create a plan based on their eventual death, but they overlook the possibility of becoming disabled. Yet, becoming disabled could take away your ability to make decisions on your own regarding your health and your estate. In this case, you will need someone to make those decisions for you.

What Happens If I Don’t Have a Disability or Incapacity Plan?

If you do not have a specific person designated before you become incapacitated or disabled, the court will appoint one for you. This is called Guardianship, and the person making decisions for you is known as the guardian.

Who would you rather have making your personal decisions: someone you know and trust or someone appointed by the court?

How Do I Create an Incapacity or Disability Plan?

Start by completing an Advance Medical Directive, including a Health Care Proxy. This will legally designate someone to make health-related decisions on your behalf. This person is known as your Proxy. It’s a good idea to speak with this person beforehand. Make sure they will be available to make medical decisions for you and are comfortable making tough choices regarding your health. Obviously, this person should be someone you know and trust.

If you cannot make financial decisions on your own due to your condition, you also need a Power of Attorney. This document designates someone of your choosing to make all financial decisions on your behalf. Choose someone you would feel comfortable with paying your bills and overseeing your assets.

While creating your estate plan, be sure that your Long Island estate planning attorney includes a thorough disability or incapacity plan. It’s also a good idea to consider using a Trust as a tool to help you and your loved ones in the event you are unable to make decisions. A Trust essentially moves all of your assets into one place so your loved ones can access and oversee them for your benefit.

Creating a thorough and specific estate plan — including an incapacity or disability plan — will help make life much easier for both you and your loved ones.