Planning For Incapacitation

Alzheimer’s will affect one in eight baby boomers after they turn sixty-five, and incapacitation can lead to costly and lengthy court hearings if proper estate planning documents have not been created. Four of the most widely used legal documents for incapacitation planning are below:

1. Health care proxy (also known as a health agent or health care power of attorney)—allows someone to make medical decisions in the event of an individual’s incapacitation
2. Living will—addresses end-of-life care, covers pain relief, and details resuscitation wishes
3. Durable power of attorney—authorizes a trusted individual to act as an agent in a number of legal and financial matters
4. Living trust (revocable trust)—a trustee will manage the trust funds and distribute money for the beneficiary’s care

For more information on incapacitation planning, see, Deborah L. Jacobs, Sign a Healthcare Proxy, Living Will and Power of Attorney, Forbes, Sep. 26, 2011.