Many older adults eventually rely on others for daily support. Their health and cognitive capabilities may decline with age, leaving them reliant on professionals or family members to manage their finances, meet their daily needs and make major medical decisions.
People who become incapacitated are at risk of losing control of their lives. Those preparing for retirement or processing a recent diagnosis may want to establish an estate plan for their future incapacity.
What does that process entail?
Empowering the right person
People who are incapacitated cannot manage their own finances or handle legal matters for themselves. They may not even be able to guide their own medical care. Standard powers of attorney may not help people experiencing permanent incapacity. Durable powers of attorney are crucial tools for those concerned about permanent incapacity. They can choose someone else to manage their financial and medical affairs until their passing.
Preparing for care expenses
Incapacitated older adults often require around-the-clock medical support and supervision. They may need to move into a nursing home, which can be quite costly. Those concerned about future incapacity may need to plan to ensure that they can qualify for Medicaid quickly if they require long-term care benefits. People sometimes establish trusts or transfer ownership of certain assets in advance to improve their chances of qualifying quickly.
Addressing elder law concerns, including the risk of future incapacity, is an important part of estate planning. People who take the right legal steps in advance can facilitate access to support and protection when they are at their most vulnerable later in life.
