Everyone’s estate plan should account for things that are uncertain. The future is unknown, and this is why estate plans are so important to utilize. By having a contingency plan, you will be able to account for every scenario and ensure that your assets can be distributed in the best possible way.
Incapacity is always a possibility in everyone’s life. It may be the case that at some point in your life you become ill to the point of not being able to make decisions regarding your business, your health or your assets. In this case, you will need a person to take control of your estate so that you can continue to be provided for. The following are some ways that you can plan for this eventuality.
Create a trust
Creating a trust helps you to communicate how you want your assets to be managed both during your lifetime and after your death. By appointing a successor trustee, they will have the power to manage the assets in your trust if you become incapacitated. You can detail instructions for how you want them to manage your assets during your lifetime.
Appoint a power of attorney
A common way to plan for incapacity is to appoint a power of attorney. A power of attorney is a person who can act on your behalf when you have become incapacitated. This means that they can make medical or financial decisions on your behalf.
If you are starting to plan your estate, you should make sure that you have planned for all eventualities. This can be complicated to do, but it is possible if you take a strategic approach.