How Becoming Incapacitated Can Affect Your Family

How Becoming Incapacitated Can Affect Your Family

If you should become incapacitated at some point in your life, you can bet it will be both very scary and stressful for you and your family.

Becoming incapacitated and unable to take care of your affairs, does not mean that you do not have a plan or say in your care and finances though.

There are steps you can take today to ensure that you and your family are both taken care of should you or your spouse ever end up in this situation.

Advance Health Care Directive 

An advance health care directive is also known as a living will.  This document allows you to choose someone you trust to make your health care decisions.  This person might be a family member or a trusted friend.  Having someone designated to make sure your health care decisions are in line with your outlook and desires will take the pressure off of you and your family.

Working through the establishment of a living will/advance health care directive means stating clearly which health care and end of life choices you want.  This document also allows you to say what you want or do not want. For example, you can put in your advance health care directive that you do not want a feeding tube or you can put that you do want a respirator if those are your choices.  These directives eliminate ambiguity for your family when trying to make health care decisions on your behalf.

Setting up a living will/advance healthcare directive today is a great first step in getting your estate in order.

Set Up Your Advance Health Care Directive & Living Will Today

  • This field is for validation purposes and should be left unchanged.

Durable Power of Attorney for Finance 

A durable power of attorney is similar to the advance health care directive in that you choose a family member or a trusted friend to make decisions for you.  The difference is that this is for your finances.  Because of this, you want to make sure you choose a person you completely trust to make sound financial decisions for you and possibly your family depending on the situation.  The person you choose can be the same person as your advance health care directive but does not have to.

Guardianship Plan

When we say a Guardianship Plan, we are talking about a plan set up to help you to choose someone to take care of your minor children if you are unable to.  In many cases, your spouse will be there to the carry-on with guardianship of your minor children, but in the rare case both of you become incapacitated or only one of you are still living, it will give you the reassurance your children will be taken care of.

Along with choosing who will be your children’s guardian, you can also add a letter voicing your wishes for how your children are raised.  You can say what type of education you want for them, what religion you want them to follow, etc.

You can read more about guardianship plans and kids protection plans, here.

Trust

Having a trust set up for your children will ensure that your wealth is protected from undue taxes or probate while also setting up the transfer of your wealth and estate to those you designate.  You will be able to name a trustee who will help your children access your gift for things like schooling, housing, basic needs, or other things you want to designate.

To help reduce stress, the trustee and the guardian should be two separate people. However, they must be able to work together and make decisions in the best interest of your children.  Without a trust, your financial and property assets could become the rope in a tug of war between kids, relatives, and others.  If you were to become incapacitated, a trust would truly help to keep things straight for everyone!

What if I Become Incapacitated? Who Will Take Care of My Family?

What if I Become Incapacitated? Who Will Take Care of My Family?

Not being able to take care of your family or yourself can be a scary thought. 

Who will make all the important decisions about your finances, health, and important decisions about your family?

There are some estate planning documents that will allow you to name someone to take care of you and your family. 

Let’s take a look at what they are.

Advance Health Care Directive

An advance health care directive allows you to name someone to make health decisions for you when you are incapacitated.  This is often used to decide on whether or not to use feeding tubes, ventilators, or other life-sustaining treatments.  It is also used if you are unable to speak for yourself or sign health documents even at a doctor’s appointment.

The Advance Health Care Directive is also known as a living will or durable power of attorney for healthcare.

If you do not have an advance health care directive, doctors will do everything they can to keep you alive even if that is not what you want.  Be sure to discuss with whomever you choose what you would want them to do.

Durable Power of Attorney for Finance

Similar in intent to an advance health care directive, the durable power of attorney for finance allows you to name someone to take care of your finances if you become incapacitated.  This can be the same person or a different person than you named for your healthcare decisions.

If you do not name someone, then a court will appoint someone to manage your finances.  Your spouse may not have access to your finances unless everything has/had already been set into a joint property.

You want to make sure that whoever you name is someone you trust.  They will handle all of your finances!

If you do not have someone you trust, you can contact a professional to help you setup fiduciary support.

Guardianship Plan

A guardianship plan will lay out what is to happen to your children should you be incapacitated. More than likely if you have a spouse, your spouse will take over the full care of your children. However, if you or your spouse is not in town, not readily available, estranged, or any number of other scenarios where you (or they) cannot immediately take custody of your children, things can go sideways, fast!

Here’s a breakdown of what you need to know about Guardianship Plans:

You will need to name a guardian for your children.  You can also include what you want for your children, such as the type of schooling they will receive, if you want them to participate in sports, what values and morals you want them to grow up with, etc.

You want to choose someone you trust to follow your wishes.  They also should be able to financially and emotionally support your children and perhaps even have the same faith or values as you do.

Trust

Setting up a trust for your children will make sure that they will have the financial support they will need.  It can also ensure that your children will not receive their whole inheritance when they turn 18.  Naming someone other than the guardian to be the trustee of the trust can help make sure your children are using their inheritance wisely.  Regardless, you want to make sure that the guardian and the trustee can get along and make decisions together.

There are many factors involved when trying to lay-out how a trust will coordinate with a guardian, powers of attorney, advance directives, wills, and more.  Your best bet is to set up a consultation with a great estate planning attorney.

Talk to an Estate Planning Attorney About Family Protection and Guardianship, Today! 

Contact

  • This field is for validation purposes and should be left unchanged.