5 Reasons to Have an Incapacity Plan
Some people procrastinate when it comes to planning for the likelihood of becoming incapacitated. Understandably, the thought of being too sick or disabled to handle your own finances and health care decisions is disagreeable to nearly everyone.
Other individuals believe that an incapacity plan is unnecessary because they don’t really own anything.
And some people don’t prepare for incapacity because they don’t understand what can happen without a plan in place.
Whatever the reason, failing to plan for incapacity can have serious personal and financial consequences for both you and your loved ones. Here are five reasons why it’s never too soon to start planning.
Puts You in Control
In the absence of an incapacity plan, the court must intervene to decide who should take charge of your finances and health care decisions. If you plan in advance, however, you get to choose a trusted individual who will have the authority to make these important decisions if you can no longer do so.
You can’t predict whether you will be involved in a serious accident, and you can’t know whether you will become too ill to handle your own financial and health care concerns, but you can control who will oversee these important matters if the unthinkable happens.
Protects Minor Children
If you have young children, it’s important to select someone who will serve as their legal guardian. This person can oversee your children’s financial and physical care in the event you become incapacitated.
With an incapacity plan, you can give trustworthy individuals the authority to manage your real estate, bank accounts, and other important assets. Because a period of incapacity can last for years, asset management is usually an important aspect in an estate that involves an incapacitated person.
Without an incapacity plan in plan, several family members might seek to establish a guardianship. Disputes can arise when the court must choose between multiple family members to serve as guardian. Unfortunately, these situations can lead to damaged relationships that never recover.
Many people avoid contacting an estate planning attorney because they assume the cost will be too high. In reality, however, an uncontested guardianship requires ongoing reporting and accounting, which can be a significant long-term expense. The attorney’s fees for creating a comprehensive estate plan are an economical option compared to the high cost of administering a guardianship for several years.
Minnesota Estate Planning and Probate Law Firm
To discuss your case, call the Minnesota probate and estate planning attorneys at Jeffrey P. Scott & Associates, LLC today our office.
This website has been prepared by Jeffrey P. Scott & Associates, LLC for informational purposes only and does not, and is not intended to, constitute legal advice. The information is not provided in the course of an attorney-client relationship and is not intended to substitute for legal advice from an attorney licensed in your jurisdiction.