Preparing for the possibility of incapacity is the most overlooked component of estate planning. While many people think about estate planning in the event of death, just a tiny fraction think about disability planning. From the customer’s viewpoint, disability planning should take priority over estate planning from client’s viewpoint because it directly benefits the client and because the possibility of being disabled in the next year exceeds the chances of dying in that period until a person is far into retirement age.
Making Provisions for Disabilities
The client’s advisory team may continue to help them manage their assets and provide for themselves and their dependents.
Disability planning is required when a client is mentally impaired to the degree of being unable to make business or personal care decisions or physically disabled to the point of being unable to express instructions for the administration of their affairs. A person is judged incompetent when a medical practitioner concludes that they lack the mental ability to make business or personal care decisions.
A person is referred to as incompetent when a judge decides that they are legally incapable of making commercial or personal care decisions. When someone is deemed incompetent, the court has the authority to take away their ability to make personal and business decisions and appoint someone else to do so under the court’s supervision. Connecticut estate planning lawyers create a strategy that matches your current requirements while anticipating future life events that need a disability plan.
The legal process of transferring assets from a deceased person’s name to the names of a beneficiary or heirs is known as probate. A “live probate” is a kind of probate court proceeding that occurs in real-time. An elder care attorney can help safeguard your rights and interests.
Living probate is given to someone who is suspected of being mentally ill and unable to manage their affairs. Someone files a case in probate court against them, requesting that the judge take away their ability to make medical and/or commercial decisions and give it to someone else. It’s a pricey practice in which the person accused of incompetence pays the lawyers for both parties.
If a person is deemed incapable of managing their own company activities and there are commercial challenges to be handled, the court will appoint a guardian or conservator. The guardian or conservator will have to post a bond to protect the estate from theft or mismanagement, as well as present a detailed accounting to the court on a regular basis for auditing.
Even though death-related disability is uncommon, it should be treated seriously. Advisors should approach disability planning, in the same manner, they handle estate planning, stressing to their clients the need to plan for both the now and the future. Working jointly with all wealth planning professionals is the best method to prepare consumers. Having a clear understanding of each other’s roles and a tight relationship with the client is crucial throughout the planning stages, the client’s disability, and after the client’s death.