Meet David And Laura.

David and Laura are in their late fifties. Their children are grown, retirement is getting closer, and most of their financial life has always been handled together.

Like many married couples, they assumed that if something happened to one of them, the other would automatically be able to step in and take care of everything.

They had never really considered what could happen if one of them were still alive but temporarily or permanently unable to make or communicate important decisions.

A few years later, David suffered a serious stroke.

He survived, but for a period of time he was unable to communicate clearly and could not manage many of the financial and healthcare decisions he normally handled himself.

Laura suddenly found herself dealing with doctors, bills, accounts, insurance, and decisions about David’s care while also trying to support her husband and family.

Fortunately, they had already taken time to decide who should be able to act if either of them could not act for themselves.

They Had Already Chosen Who Could Step In.

Their estate plan included documents designed to address incapacity while they were still alive.

David had named Laura to act for him in certain financial matters through a durable financial power of attorney.

He had also completed healthcare documents identifying who he wanted involved in medical decisions if he could not communicate those decisions himself.

A HIPAA authorization helped identify the people who could receive protected medical information within the authority provided by the document.

Because those decisions had been discussed and documented ahead of time, Laura did not have to begin the conversation from scratch during the middle of the crisis.

The Plan Was Not Only About What Happens After Death.

Estate planning is often associated with inheritance, property, and what happens when someone dies.

But incapacity planning can be just as important.

David and Laura’s planning conversations addressed who could make financial decisions, who could participate in healthcare decisions, who should have access to important information, and how responsibilities could continue if one of them became unable to handle them personally.

The documents did not eliminate the difficulty of David’s medical emergency.

They did, however, provide clearer authority and direction at a time when the family already had enough to think about.

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