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Including Incapacity in Your Estate Plan
Who Will Take Care of Things If You Can't?
When you're developing your estate plan, it's important to think about what needs to happen if you become ill or injured. Who will take care of your finances? Who will make decisions about your health care? How will you pay for care on a long-term basis? Some common tools used to help meet those particular needs include:Living Will*
A living will is a document that communicates your intentions regarding the use of life-sustaining measures in the event of terminal illness. It expresses what you want to happen but does not give anyone the authority to speak for you.Health Care Power of Attorney*
A health care power of attorney, also called a durable power of attorney for health care, is a document that lets you appoint someone to make medical decisions for you if you are unconscious, mentally incompetent or otherwise unable to make your own health care decisions. Many states also let you include directives on withholding or providing life-sustaining care in your health care power of attorney.Durable Power of Attorney*
A durable power of attorney is a document that lets you legally name another person to act on your behalf. Some examples of responsibilities performed by your "agent" or "attorney-in-fact" include:• Handling banking and investment transactions
• Entering safety deposit boxes
• Settling insurance claims and handling matters related to government benefits
• Buying, managing or selling personal property or real estate
• Filing tax returns
Revocable Living Trust
When you establish a revocable living trust, you can appoint a successor trustee to manage trust property in the event that you become ill or injured and unable to continue managing the property yourself. This may help avoid the need for a probate court guardianship.Long-Term Care Insurance
Unfortunately, Medicare and most health insurances do not cover the costs of long-term care, whether you receive it at home or in a long-term care facility. That means if you become ill or injured and need long-term care, you and your spouse will most likely bear those costs. Long-term care insurance can help you pay those expenses. Ask your Financial Advisor for more information. Note: A.G. Edwards does not provide legal, accounting or tax-preparation advice. You should consult your tax and legal advisors for your specific situation.
*Ask your attorney for more information.
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