What Happens If I Become Incapacitated Prior To Developing An Incapacity Plan?
One of the biggest misconceptions out there is that people believe that they will create a power of attorney or a designation of healthcare surrogate “when they need it”. In order to sign a power of attorney and designation of healthcare surrogate, you need to have capacity and understanding of what you are signing. The purpose of having those documents is to govern what happens if you’re incapacitated. Therefore, you cannot sign those documents when you need them.
If you don’t develop an incapacity plan before you become incapacitated then you’re forced to go to guardianship court in order to have your caregiver or family member manage your financials and make medical decisions. Guardianship court can start at least at $7,500 and cost can easily extend to $10,000 to $20,000 in order to manage your incapacity when a simple incapacity plan with a durable power of attorney and healthcare surrogate that costs less than $500 could do the exact same thing. It is important to remove that misconception of creating a power of attorney and designation of healthcare surrogate when you need it.
How Does Incapacity Planning Make Things Easier For My Family?
Incapacity planning makes things easier in three different ways. First, it gives your family the ability to simply act on your behalf on anything financial. Next, incapacity planning gives instructions and good family members prefer to follow instructions and fulfill their loved one’s intent. Third, the good up-to-date incapacity documents provide more relevant instruction to your family members so they can feel comfortable and contended to how they’re managing things for you.
The first and the foremost importance of incapacity planning is to put your family in a position where they can manage your finances. I cannot simply go into a bank and ask what my granddad has in his bank account. The bank won’t see my name on his bank account and that would be nosey. Nor can I go into the bank and ask for the financial information of the reader of this article; that is not allowed. In order for me to go into the bank account, get information, write checks, you, the reader, would need to name somebody who can do that in your place. This becomes very important if you’re no longer allowed to go to a bank and your family is staring at large medical bills and a future of medical bills and they’re worried about how to pay for your care. Giving them the authority to handle any kind of financial transaction is very important. No, naming a joint owner in your bank account will not solve this problem. A good incapacity plan will cover a whole realm of financial transactions such as dealing with mail, dealing with insurance, dealing with retirement plans, dealing with company benefits, dealing with investment accounts, dealing with real estate and so forth.
An incapacity plan will make things easier for family because if you give them instructions, good people like instructions. If you name the right people to act and if they have a plan then they will be able to follow it. If there is a plan, if somebody doesn’t like the plan and we have proof of the plan in writing then that can thwart off estate-related disputes. It does make a lot of things easier because the family will know what to do and where you have your accounts. Last, as you may progress in life and have different attitudes and wishes, it could give family members acting on your behalf more specific instructions on how you would like to behave, which only gives them further peace of mind.
Additional Information On Incapacity Planning In Florida
Incapacity planning should have a keen focus on how to pay for care when you become or if you become incapacitated. If you’re incapacitated, you’re likely going to need help from others to perform simple activities of daily living like helping you eat a meal and giving you a bath and helping you to the bathroom. The cost of having caregivers help you do such tasks can be extraordinarily expensive. Nursing homes in Jacksonville run between $7,500 and $10,000 per month. Assisted living facilities in Jacksonville can run between $2,000 and $6,000 per month. In-home care companies can charge about $19 to $21 per hour and you may be able to find caregivers through word of mouth between $ 14 and $16 per hour. In an incapacity plan, you’ve got to consider how you are going to pay for these costs that are going to be incurred in addition to all your normal living expenses and housing and food. In an incapacity plan, you need to be well aware of and understand the costs and what the care settings look like and how things get paid, whether it’s through your own funds, long-term care insurance, Medicaid benefits, or VA benefits. During any kind of incapacity planning session with an estate planning attorney, you should have these discussions about how to pay for care and the qualification process to qualify for these benefits and whether or not any insurance purchases should be made, investment decisions should be made, or trust creation decision should be made based upon your full disclosure of the facts about paying for care and your existing financial situations. Any incapacity plan needs to have that consideration of how to pay for care during an incapacity.
For more information on Incapacity Prior To Incapacity Planning, an initial consultation is your next best step. Get the information and legal answers you’re seeking by calling (904) 398-6100 today.
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