Setting up an estate plan is about a lot more than writing a will. You should also have a comprehensive incapacity plan in place. The sooner you prepare for the risk of incapacity, the better positioned you and your family will be to navigate challenging times. Early legal preparation matters a lot more than most people think. At White & Jocham, our Indianapolis estate planning lawyers are committed to helping people and families put the right plan in place for their specific situation.
Incapacity Planning Works Best When It Is Done Before a Crisis
The most important reason to plan early is simple: incapacity can remove a person’s ability to make or formalize important legal choices. A serious stroke, traumatic brain injury, dementia, or sudden medical emergency can leave someone unable to manage finances, communicate treatment preferences, or decide who should act on his or her behalf. Waiting until incapacity has already occurred may mean that some planning options are simply no longer available.
Early preparation lets you make those decisions yourself. Along with other things, it may allow you to select the people you trust, define the authority they will have, and give them guidance about your finances and medical care. You can also coordinate documents before family members are forced to make urgent decisions during a medical crisis. Incapacity planning is not merely about preparing paperwork: It is about preserving as much control as possible.
A Power of Attorney Can Keep Financial Affairs Moving
A financial power of attorney (POA) is a core incapacity planning document in Indiana. It allows another person (an attorney-in-fact) to exercise authority granted by the principal. Depending on how the document is drafted, that authority may include managing bank accounts, paying expenses, handling investments, dealing with insurance, signing contracts, managing real estate, and addressing tax or business matters.
Know the Law: Indiana law gives people substantial flexibility in structuring a power of attorney. Under Indiana Code § 30-5-4-2, a power of attorney generally becomes effective when properly signed, but the document can specify a later date or make effectiveness contingent on an event such as incapacity. Our lawyer can help you put the right POA in place for your objectives.
Advance Directives Address Medical Decisions During Incapacity
Financial authority is only one part of a comprehensive incapacity plan. Indiana residents should also consider who will make health care decisions if they can no longer communicate or provide informed consent. Indiana law (Indiana Code § 16-36-1-7) allows a person to appoint a health care representative. The appointment must satisfy statutory execution requirements, and the representative can act on health care matters when authorized to do so. Indiana’s Department of Health explains that a health care representative can consent to or refuse medical care when the patient is unable to make those decisions personally.
You may also consider a living will as a form of an advance medical directive. Along with other things, a living will records a person’s preferences regarding life-prolonging treatment if specified end-of-life circumstances arise. In Indiana, the law allows an adult of sound mind to execute a living will declaration or life-prolonging procedures declaration, subject to statutory signing and witnessing or notarization requirements. An attorney can help.
Be Proactive: Early Planning May Help Avoid a Court-Supervised Guardianship
One major consequence of failing to plan for incapacity is that family members may eventually need to ask a court for authority to act. Indiana’s guardianship statutes allow a person to petition for appointment of a guardian for an incapacitated adult. The proceeding can require evidence regarding the nature of the incapacity, the person’s property and income, and the scope of authority that the proposed guardian needs.
A major goal of incapacity planning is to stop the need for an adult guardianship. An Indianapolis estate planning attorney can help with that objective. Of course, not everything can always be prepared for in advance. If an adult guardianship is needed for your vulnerable loved one, an experienced Indiana elder lawyer will determine the appropriate course of action.
A Comprehensive Incapacity Plan Should Be Coordinated and Updated
Good incapacity planning requires more than signing several documents and storing them indefinitely. The different parts of the estate plan should work together. The person handling financial affairs should have adequate authority to deal with the assets actually owned by the principal, while the health care representative should understand the principal’s medical preferences and values.
Planning should also account for practical access. Trusted decision-makers may need to know where important documents are stored, how to contact financial professionals, what insurance coverage exists, and where information about accounts and recurring obligations can be found. Depending on the estate plan, a revocable trust may also play an important role by allowing a successor trustee to manage trust assets when the original trustee can no longer serve.
We are Proud to Be Leaders in Incapacity Planning in Indiana
As every adult faces a risk of incapacity, it is imperative that you have a comprehensive plan in place. With a proactive approach, you can best protect yourself, your family, and your finances. At White & Jocham, we provide solutions-focused estate planning services to clients in Indianapolis and throughout the region in Indiana. Our firm has extensive experience with incapacity planning, including powers of attorney, living wills, and more. Your initial consultation with our Indianapolis estate planning lawyer is strictly confidential and carries no additional obligations.
Contact Our Indianapolis Estate Planning Lawyer for a Confidential Consultation
At White & Jocham, our Indianapolis estate planning attorney has the professional expertise that you can trust when it matters the most. If you have any questions about incapacity planning, we are here as a legal resource. Call us now or contact us online right away to arrange your completely confidential, no-obligation initial consultation. With a law office in Greenfield, we handle estate planning matters in Indianapolis and throughout the surrounding region in Indiana.