Incapacity Planning
Contributed by Gregory Becker
Common reasons new clients seek out my services include distribution of assets to beneficiaries, probate avoidance and maximization of federal estate tax savings. Incapacity planning is often overlooked even though it is an extremely important part of an overall estate plan.
Powers of Attorney for Business and Health along with a Living Trust are central components of a plan that addresses incapacity. These documents nominate successors and empower them to handle affairs pursuant to the guidelines set forth in the documents during times of diminishing capacity, temporary incapacity and incapacity.
When issues arise relating to real estate, retirement accounts, health care insurance, utility bills and bank accounts, to name a few, the estate plan documents are invaluable.
What happens when there is no plan and financial or health issues affect one that is substantially unable to manage their affairs? Conservatorships through the probate court may be required to obtain powers to manage the affairs of the incapacitated. These proceedings are extremely time-consuming, expensive and can continue through death. Without the proceedings, the threat of undue influence, fraud and mismanagement becomes more and more prevalent.
Most of my clients do not just pass away. As they grow older, their capacity diminishes and management of one’s affairs becomes more and more challenging. The ones that have estate plans are generally in a much better position than those who have not planned properly.
With a well thought out plan that includes a living trust, powers of attorney for business & health as well as a review of assets, vesting and beneficiary designations, we can typically avoid major issues that negatively impact those without estate plans.
The Law Office of Gregory I. Becker
1711 Via El Prado, Suite 103 B
Redondo Beach, CA 90277
(310) 543-1126
www.gregorgybecker.com
California State Bar License #183059
