-
-
While the possibility of becoming incapacitated does increase with age, disability is not limited to the elderly. On the contrary, a tragic car accident, a debilitating illness, or even a work-related injury could all result in your incapacity at any age. In fact, a typical 35 year-old has a 24 percent, or one in four, chance of becoming disabled for 3 months or longer during his/her working career. That same worker has a 38 percent chance that if disabled, that disability will last for five years or longer. Given those odds, it should be apparent that the possibility of incapacity is something everyone should consider.
-
-
-
Whether you have only a modest estate, or you have accumulated great wealth, the assets you do own undoubtedly mean something to you. In addition, you are used to controlling what happens to those assets. If you were to become incapacitated tomorrow, someone would have to take over control of those assets. In the absence of an incapacity plan that dictates who that person will be, you have no way of knowing who will end up in control of your assets. More than one person could feel that they have the right to step in and take control, resulting in costly litigation.
-
-
-
Over the course of a single day, you make hundreds, even thousands, of decisions for yourself. Although most of those decisions are inconsequential, you will also occasionally need to make life-altering decisions for yourself. If you become incapacitated, someone may need to make life and death medical decisions for you if you cannot make them yourself. Once again, if more than one person believes that they have the right to make those decisions for you it could lead to contentious litigation and a family rift that may never heal.
-
-
-
Incapacity planning utilizes legal strategies and tools that collectively determine who will control your assets and make important decisions for you in the event you are ever incapacitated. It allows you to make crucial decisions now instead of a judge making them for you later.
-
-
-
A Power of Attorney is a legal agreement that allows you (the “Principal”) to grant another person (your “Agent”) the legal authority to act in your place in legal matters. That authority can be general, allowing your Agent almost unfettered power to act on your behalf, or limited, only granting your Agent the authority to act on your behalf in specific situations or for a designated period. While a Power of Attorney can be a helpful incapacity planning tool, it has some drawbacks, including the risk that third parties won’t accept your Agent’s authority.
-
-
-
A revocable living trust is an extremely popular incapacity planning tool that works by allowing you to appoint yourself as the Trustee of the trust and appoint someone of your choosing as the successor Trustee. Your estate assets are then transferred into the trust. Because you are the Trustee, you continue to control those assets just as before; however, if you become incapacitated the successor Trustee (chosen by you) takes over as Trustee, thereby shifting control of your assets to the person of your choice without the need for court intervention. Moreover, when you recover you can resume your position as Trustee as if nothing happened. Finally, because the trust is revocable, you can move assets in and out of the trust with ease and even replace the successor Trustee if you wish to do so at any time.
-
-
-
An advance directive is a legal document that allows you to plan ahead and make your own end-of life wishes known in the event that you are unable to communicate those wishes at some later time and/or appoint someone to make decisions for you. State law dictates what types of advance directives are recognized in the state. Indiana recognizes two types of advanced directives, including:
- Appointment of Health-Care Representative and Power of Attorney -- lets you name someone, called your health-care representative, to make decisions about your medical care — including decisions about life support — if you can no longer speak for yourself. This document is especially useful because it allows you to appoint someone to speak for you any time you are unable to make your own medical decisions, not only at the end of life.
- Indiana Declaration -- lets you state your wishes with regard to life-prolonging procedures in the event you develop a terminal condition and can no longer make your own decisions. The Declaration allows you to choose between Indiana’s Living Will Declaration, which allows you to state your preference for the withdrawal or withholding of life-prolonging procedures, and Indiana’s Life-Prolonging Procedures Declaration, which allows you to state your preference for receiving life-prolonging procedures if you are terminally ill.
-
Contact Us
If you have additional questions or concerns about incapacity planning in the State of Indiana, contact an experienced Indianapolis, Indiana incapacity planning attorney at Frank & Kraft. by calling (317) 684-1100 to schedule your appointment today.
