Creating an estate plan is a responsible step to take to help protect your loved ones when you pass away. Many people don’t realize that estate planning is about more than just planning for death.
You can also use your estate plan to provide instructions and information about what to do if you become incapacitated. Some of the documents to include in your estate plan that will help you prepare for incapacitation are listed here.
The financial power of attorney
A financial power of attorney allows you to name a person to manage your finances if you are incapacitated. This person has the right to file tax returns, sell or mortgage real estate, make financial decisions for you, pay bills and more.
You can opt for a “durable” or “springing” financial power of attorney. Once you sign the durable power of attorney, it goes into effect. With the springing power of attorney, it is only effective when you are declared mentally incapacitated.
A medical power of attorney
Also called the Health Care Proxy, the medical power of attorney names someone to make healthcare decisions if you become incapacitated. It’s like the financial power of attorney, except for medical-related decisions.
In this document, you can stipulate the types of medical services you consent to and want to avoid in case of incapacitation. You can also include if you are an organ donor.
Creating an effective and comprehensive estate plan
While creating an estate plan may seem a bit overwhelming, it can help save you and your loved one stress and hassle if you become incapacitated. Be sure to explore your legal options and create the necessary documents to ensure everything is carefully planned.