Why Legal Preparation Matters
Life can come at us fast and hard and take us by surprise. When we receive a difficult medical diagnosis or suffer from a debilitating injury, it is not unusual to feel overwhelmed and uncertain. It can be a challenge to juggle the medical and financial issues that come with serious diagnosis or disability, leaving us little energy to consider another very important aspect of these situations: the legal ramifications of such illness or injury.
If you were to suffer a serious illness or injury and were unable to make important medical, financial, and legal decisions for yourself, you would need someone to make those decisions for you, such as a spouse, other family member, or friend. But these people won’t have the legal authority to make those decisions unless and until you grant them that authority by certain particular legal documents. Without having these documents in place, your family may have to go to court to obtain the legal authority to make decisions for you and to carry out your wishes.
We’ll look at these key documents below.
Durable Power of Attorney (DPA). A DPA names one or more persons (known as “fiduciaries”) to act on your behalf if you are unable to act for yourself in medical and financial matters. In well-crafted DPA’s, your fiduciaries have the authority to handle all personal, financial, and medical matters as if you were handling them yourself. Because of this, it’s important for you to discuss your wishes with your fiduciaries so they can carry them out.
Health Care Directive (HCD). A Health Care Directive works closely in tandem with your DPA, and clearly expresses your wishes concerning end-of-life medical decisions. A HCD can becustomized and tailored so that there will be no confusion over what you want to happen should the time come that end-of-life decisions need to be made.
While considering end-of-life planning, it’s important to consider long-term care planning as well, preparing for the possibility of permanent incapacity and addressing such questions as whether you will be able to receive care at home or if you will need care in an adult family home. Both options come with significant costs, but with the proper legal planning, you may be able to mitigate some or all of these costs, while still preserving important assets, depending on your particular situation.
Last Will and Testament and/or Trust. These documents express what you wish to happen to your estate after you pass away. A trust can also provide additional planning benefits for asset management during your lifetime in the event of incapacity. It’s important to speak with a certified elder law attorney to determine which is best for your particular situation. If you already have a will or trust, it’s important that you keep your plan up-to-date—for example, if you made your will when your children were minors, you’ll want to update it now that they are of legal age —and make sure that your fiduciaries and beneficiaries are current.
Once you have your documents in place, let your trusted family or friends know about them and where they are located. You should also keep in a safe place a list of your financial accounts, insurance and tax information, any other important papers, passwords to important accounts, and the names and contact information for your medical, financial, and legal professionals. Be certain someone you trust has access to these documents in case something happens to you.
It can seem daunting to consider all the factors that go into planning for the future, but when guided by experienced elder law attorneys, planning can be a smooth process. People often regret not speaking with an attorney before serious illness or injury occurs, but for those who understand the importance of planning, they have peace of mind knowing that their plans and wishes are in place and ready to handle whatever life might throw at them. If you do not yet have a plan in place or if you need to update your plan, contact an experienced, certified elder law attorney to discuss your planning options.