Estate planning is an essential process for individuals who want their assets and wishes handled according to their desires after they pass away. However, one important factor that can significantly affect estate plans is the issue of incapacity. This condition raises concerns about the execution and validity of an estate plan.
Impact on execution of estate plans
An individual must have the legal capacity to execute an estate plan. This means they must fully understand the nature and extent of their assets, the effect of their decisions, and who the beneficiaries will be. If a person is not fully capable at the time of executing their estate plan, someone can challenge the plan and deem it invalid. This can lead to significant complications, such as disputes among family members or court intervention.
Validity of existing estate plans
Incapacity also impacts the ongoing validity of an estate plan. If an individual becomes incapacitated after the creation of their estate plan, the plan remains valid as long as the individual was of sound mind when creating it. However, if changes to the plan are necessary, an incapacitated person cannot legally make these changes. Instead, a court may appoint a guardian or conservator to manage the person’s affairs.
Protecting estate plans from the risks of incapacity
Planning for the possibility of incapacity ensures that an estate plan remains effective. A person can do this by creating durable powers of attorney and healthcare directives, which allow designated individuals to make decisions on behalf of the incapacitated person. These tools can help prevent the estate plan from being invalidated or mismanaged if incapacity occurs.
Honoring one’s wishes
By planning ahead and considering the potential risks of incapacity, individuals can protect their estate plans and ensure their wishes are honored, regardless of their future ability to make decisions.