Preparing for the possibility of incapacity is the most overlooked component of estate planning. While many people would think about estate planning in the event of their death, few would think about disability planning. Disability planning, on the other hand, should be the most important part of estate planning from the client’s perspective, both because it directly benefits the client and because, until a person is well past retirement age, the likelihood of becoming disabled in the next year outnumbers the likelihood of dying in that period.
Making Provisions for Disabilities
The advisory team may continue to support the client in managing their assets and providing for themselves and their dependents with adequate planning.
Disability Planning
Disability planning is required when a client is cognitively incompetent to the degree of being unable to make business or personal care decisions, or when they are physically disabled to the point of being unable to communicate directions for the management of their affairs. Incompetence occurs when a medical practitioner judges that a person lacks the mental ability to make business or personal care decisions.
A person is considered incapacitated when a judge considers them legally incapable of making business or personal care decisions. When a person is deemed incapable, the court may remove the person’s ability to make personal care and business decisions and appoint someone else to do so under the court’s supervision. Get started with CT estate planning attorneys.
Living Probate
The majority of people think of probate as a legal process for transferring assets from a deceased person’s name to a beneficiary or heirs. A “live probate” is a special kind of probate court case.
Living probate is awarded to someone who is suspected of being mentally ill and unable to manage their affairs. Someone files a case in probate court against them, demanding that the judge take away their ability to make medical and/or commercial decisions and give it to someone else. It is a pricey process in which the suspected incompetent person pays the lawyers for both sides.
If a person is deemed incapable of managing their business affairs and there are business issues to be handled, the court will appoint a guardian or conservator. The guardian or conservator will be expected to post a bond to protect against theft or mismanagement, as well as give a detailed accounting to the court on a regular basis for auditing. The Connecticut elder law attorneys provide sound legal counsel and create a plan that’s tailored to you.
Conclusion
Although incapacity before death is uncommon, it should be fully covered. Advisors should consider disability planning similarly to estate planning, stressing to their clients the need to prepare for the future as well as the hereafter. Coordination of all wealth planning professionals is the best method to prepare consumers. Having a clear understanding of each other’s roles and a tight relationship with the client is crucial throughout the planning stages, during the client’s disability, and after the client’s death.