How to Plan for Diminishing Capacity
Estate planning is also about protecting yourself during your lifetime, not just distributing assets after death.
Estate planning conversations shouldn’t focus solely on what will happen to your assets after death, but also on what may happen if you experience diminishing mental capacity during your lifetime as a result of an accident, disease, medication, or dementia. It can happen at any age.
Preparing for the future means thinking beyond what happens after death and considering what might occur if you lose the ability to make decisions during your lifetime. Conditions like dementia, serious illness, injury, or even certain medications can affect mental clarity at any age, making it important to have plans in place ahead of time.
A General Durable Power of Attorney (POA) focuses primarily on appointing someone to ensure efficient management of your financial and legal affairs. You may give the named agent(s) the authority to make decisions immediately or to only be capable of making those decisions once one or two doctors state in writing that you are no longer able to make those decisions for yourself.
Consideration must also be given to how healthcare decisions are made in the event of diminishing capacity. A Power of Attorney for Health Care allows you to delegate to another person the ability to make healthcare decisions in the event that you are unable to make them. The modernized advance healthcare directive language should also be included in the health care POA, which allows an individual to state his/her wishes prior to incapacity, including preferences for end-of-life care.
Having all the right documents signed does not take the place of having a conversation with your family regarding your philosophy regarding quality and extension of life, dignity, cost factors, and your values that have led you to your decisions. If you have not had this difficult but important conversation, plan to have it soon. The risk of diminished capacity increases over time.
The team at Assertion Law Firm LLC and 417 Business & Elder Law are here to help you make sure the right documents are in place.
Please call our office at (888) 887-4170 if you have any questions about this article.
Estate planning is also about protecting yourself during your lifetime, not just distributing assets after death.
