Planning for Disability & Incompetence
You may be one of many worried about the financial issues of mental incompetence, obligations of caring for a disabled relative, or providing a residence and care for the physically incapacitated. If you are a principal income producer and you become incompetent or incapacitated for any reason, a drastic and involuntary financial adjustment in your family structure will occur. If long term public or private institutionalization is required, your property may be depleted (or you may have to expend all or almost all of your own assets) before you will be eligible for governmental or public aid.
None of these are pleasant thoughts. But you must face these and other issues before it is too late and many important planning options are lost. To preserve and protect both your property and your dignity, you must act now! If you are interested in these problems and their solutions keep reading.
THE LIVING WILL: If you were unconscious or incompetent or for any other reason were unable to make your own decisions regarding health care, who, if anyone, would you want to make such decisions? A so called Living Will may be part of the solution.
A Living Will (often called an Advance Directive for Medical Care) is a document that expresses the desire that when death is imminent, loss of mental capacity is substantial, incurable, irreversible, inevitable, and with no hope of recovery extraordinary, artificial, life sustaining techniques should not be used to prolong life. A Living Will coupled with other documents your attorney can draft for you is certainly part of the way to express your desires.
THE HEALTH CARE POWER OF ATTORNEY: A durable power of attorney for health care has been authorized in Connecticut by specific law. A health care power of attorney is broader and more flexible than a living will since it provides for many types of health care decisions other than those regarding life sustaining treatment. It allows you to appoint an agent, someone to make any and all health care decisions on your behalf in the event you are unable to make your own except to the extent you provide otherwise. You, of course, continue to make decisions as long as you are able to do so. You can refuse any health care treatment merely by objecting and can revoke the authority you give to your agent orally or in writing. A health care power of attorney is sometimes used in addition to a Living Will or may be broad enough to take the place of a living will.
THE DURABLE POWER OF ATTORNEY: A power of attorney is a relative simple and inexpensive legal document by which you give a spouse, child, or other relative or someone else (the attorney in fact ) the right to act in your place on your behalf with respect to financial matters. You can make this power as broad or as narrow as you wish. A well drawn durable power of attorney is for many people as important as a will. It may negate the need to petition a court to have a guardian or conservator appointed to handle your assets if you can’t. A durable power of attorney is a “must” if you are currently suffering from a physical disability or illness that could lead to permanent or long term incapacity but should be considered even by healthy individuals who would like to provide for continuity of management of assets if for any reason they can’t manage those assets or handle their own affairs for a period of time.
THE REVOCABLE LIVING TRUST: In order to avoid the costs, publicity, and complications of probate administration upon death or disability, many people use a revocable living trust to enable them and their family to keep control as long as possible. The trustee you select assumes the responsibility of investing, managing, and conserving the property on your behalf and for your other beneficiaries if you should become incompetent. A revocable trust allows you to change your mind and regain property that you have put into the trust or change the terms of the trust.
THE CHOICE IS YOURS! You can choose to take action now and keep control or you can choose to hesitate and let federal and state laws and fate control you and your loved ones.
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Index Tags: living trust, probate
