It is important to know what to include in an incapacity plan so that estate planners can plan for the worst. An incapacity plan will help direct how the estate planner’s financial and healthcare decisions are made and how their financial and healthcare affairs will be handled.
Durable power of attorney for financial affairs
A durable power of attorney should be included in an incapacity plan which gives the designated agent the authority to pay bills, make financial decisions, manage investments, file tax returns, mortgage and sell real estate and address other financial matters included in the durable power of attorney on behalf of the estate planner.
Durable power of attorney for healthcare or healthcare proxy
A durable power of attorney for healthcare, which also may be referred to as an advance medical directive or healthcare proxy, should be included in the incapacity plan which gives the designated agent the authority to make healthcare decisions for the estate planner if they become incapacitated. An advance medical directive or living will can also include the types of medical treatment and care the estate planner wants to receive.
Other documents that the estate planner may want to include in their incapacity plan include a revocable living trust and HIPAA authorization which will allow those designated in it to access the estate planner’s medical record. Planning for incapacity is an important step to take when estate planning and estate planners need to know what to include in their plan for incapacity.