No one likes to think about becoming unable to make decisions for themselves, but incapacity can happen to anyone at any time. Whether due to an accident, illness, or the natural aging process, planning for the possibility of incapacity is one of the most important steps you can take to protect yourself and your loved ones.
Without proper planning, your family may face significant challenges accessing your accounts, making medical decisions on your behalf, or managing your affairs during a difficult time. In North Carolina, having the right documents in place can make all the difference between a smooth transition and a stressful, expensive court proceeding.
At David Anderson, PLLC, we understand that incapacity planning involves deeply personal decisions about your healthcare, finances, and family relationships. Our approach focuses on building relationships and providing education throughout the planning process, ensuring you understand your options and feel confident in your decisions.
What Is Incapacity Planning?
Incapacity planning involves creating legal documents that designate trusted individuals to act on your behalf if you become unable to make decisions yourself. This type of planning protects not only your interests but also provides clear guidance to your family members during what is often an emotionally challenging period.
The goal is to ensure that someone you trust can step in immediately to handle your financial affairs and make healthcare decisions according to your wishes, without the need for court intervention. Every goal, whether big or small, starts with a plan, and incapacity planning is no exception.
What Documents Are Important For Incapacity Planning?
Financial Power Of Attorney
A financial power of attorney is arguably the most important document in your incapacity planning toolkit. This document allows someone you trust, called your agent or attorney-in-fact, to handle your financial affairs if you cannot do so yourself.
Your financial power of attorney can handle tasks such as paying bills, managing bank accounts, filing tax returns, managing investments, and dealing with insurance companies. In North Carolina, you can choose to make this document effective immediately or only upon your incapacity, depending on your comfort level and circumstances.
When selecting your agent, choose someone who is trustworthy, financially responsible, and available to take on these responsibilities. Many people choose their spouse, adult child, or close family member, but the most important factor is trust and capability.
Healthcare Power Of Attorney
A healthcare power of attorney, also known as a healthcare proxy, allows your chosen agent to make medical decisions on your behalf if you cannot communicate your wishes. This document is crucial because healthcare providers need clear authority before they can discuss your condition or treatment options with someone else.
Your healthcare agent can make decisions about medical treatments, surgical procedures, medication, and care facilities. They can also access your medical records and communicate with healthcare providers. In North Carolina, this document must be properly witnessed or notarized to be valid.
It’s important to have detailed conversations with your chosen healthcare agent about your preferences for medical care, including your feelings about life-sustaining treatments, pain management, and quality of life considerations.
Living Will And Advance Directive
A living will, also called an advance directive, is your written statement about the medical care you want to receive if you cannot communicate your wishes. This document typically addresses situations involving terminal conditions, permanent unconsciousness, or end-stage conditions.
North Carolina law provides a specific form for advance directives, though you can customize the language to reflect your personal preferences. Your advance directive can address preferences about life-sustaining treatments, artificial nutrition and hydration, pain management, and organ donation.
Having both a healthcare power of attorney and a living will provides comprehensive coverage. The living will gives specific guidance about your wishes, while the healthcare power of attorney gives your agent the flexibility to make decisions about situations not covered in your advance directive.
HIPAA Authorization
The Health Insurance Portability and Accountability Act (HIPAA) creates privacy protections that can prevent your loved ones from accessing your medical information, even in emergency situations. A HIPAA authorization allows designated individuals to receive your protected health information from healthcare providers.
While your healthcare power of attorney typically includes some HIPAA language, having a separate, comprehensive HIPAA authorization ensures that your chosen individuals can access your medical information quickly when needed. This can be particularly important in emergency situations where time is critical.
Protect Your Family And Legacy With David E. Anderson, PLLC
Planning for incapacity is not just about creating documents – it’s about having honest conversations with your loved ones about your preferences and ensuring everyone understands their roles and responsibilities. These conversations can be difficult, but they provide invaluable guidance during stressful times.
If you don’t currently have incapacity planning documents, or if your existing documents haven’t been reviewed in several years, now is a great time to schedule a consultation and make sure you’re in a good position with incapacity planning.