High-net worth individuals in North Carolina may not have to worry about an estate tax upon their death for their loved ones. However, while still living, they can benefit from creating an incapacity plan to protect their medical, financial and inheritance plans. An incapacity plan consists of several pieces working together.
Investopedia suggests creating a living will, guardianship declaration, durable power of attorney, revocable trust, a Health Insurance Portability and Accountability Act release agent and a healthcare power of attorney. Each legal document works for different aspects. Using these documents, the person can determine ahead of time who is to manage their assets, whether they want a natural death and where they want to be treated including a specific hospital.
Money Crashers provides a more thorough analysis on why you need these multiple parts to your incapacity planning. An individual can include a Do Not Resuscitate Order as a separate document or as part of their living will. The individual determines at what point they no longer want a healthcare professional to attempt to revive them should they stop breathing or their heart stops beating.
Having a durable power of attorney helps protect the individual’s finances. They designate a specific person to control their finances should they not have the mental awareness to do so themselves. The entrusted individual can then pay the incapacitated person’s bills and handle daily living expenses.
One never knows when they may be put into a coma or be medically unable to manage their affairs. Legal, personal and financial problems can be stopped with a quality incapacity plan.