Many people assume estate planning only matters after they pass. This causes many people to delay or avoid planning. However, some of the most important estate plans protect you while you during your lifetime. A proper estate plan also protects you if you become too sick or injured to make your own decisions. It gives clear authority to someone you trust before a crisis happens.
Who makes decisions if you can’t?
If you become incapacitated without an estate plan, your family cannot automatically manage your finances. Oregon law does allow close family members, such as a spouse or adult children, to make medical decisions for you.
Instead, the family must petition the court to appoint a conservator for financial matters and a guardian for personal decisions. The court may appoint someone you would not have chosen. Ongoing court supervision can also add costs to an already challenging situation.
How do you plan for financial incapacity?
A durable power of attorney lets you choose a trusted person to handle your money. If you get too sick to manage your money, this individual can step in. They can access your bank accounts, pay your bills and manage your property.
The “durable” aspect means the authority continues even after the person becomes incapacitated. Without this form, your family must go to court to get control of your finances. This court process involves hearings and high fees that drain the estate.
How are medical decisions handled during incapacity?
An advance directive guides your healthcare if you cannot speak for yourself. This legal tool names a health representative to make medical choices on your behalf. The document also states your wishes for end-of-life care.
If your family members disagree on what to do, it can lead to court battles for guardianship. An advance directive prevents these conflicts by clearly stating who has authority and what the person wants.
Planning for every possibility
Many people delay estate planning because they view it as preparation for death. However, incapacity planning addresses a very real and present risk that can affect anyone at any moment. Comprehensive planning means being prepared for incapacity today while also ensuring wishes are honored after passing.