Certain life experiences force people to acknowledge their vulnerability. Becoming a parent or starting a business can inspire people to establish estate plans. For others, negative experiences are what force them to consider the future.
Receiving bad news from health care professionals can sometimes make people consider their mortality and future vulnerability. Individuals diagnosed with chronic illnesses, progressive medical conditions and terminal maladies may need to establish estate plans if they have not already drafted wills. They may also decide that they want to update documents they previously drafted to better reflect their current circumstances. What estate planning moves are common among those facing major medical challenges?
1. Preparing for indefinite incapacity
Anyone facing major medical challenges has to consider the possibility of an incapacitating incident in the future. They could end up in a coma or unable to speak for themselves.
People often draft durable powers of attorney when facing medical hardship. Durable powers of attorney can help ensure that a trustworthy person can make medical decisions and handle financial matters on their behalf should something major happen.
2. Clarifying medical wishes
Advance medical directives or living wills are also important for those facing significant medical issues. They can provide statements regarding their care preferences.
Issues such as pain management and life support can be difficult for family members to address without direct information provided by the vulnerable person. People who take the time to outline their personal wishes can reduce how difficult it is for others to manage their medical care.
3. Reviewing beneficiary designations
Recognizing that life is about to change or end can lead people to think about their legacy very carefully. They may want to reallocate their assets or add certain beneficiaries to their estate plans. In some cases, they may even choose to remove people previously included as beneficiaries because of a change in the relationship they have with those people.
Creating an estate plan that reflects current relationship circumstances and personal holdings can help people leave a meaningful legacy when they die. Major medical issues can be a compelling reason to revisit and update an estate plan. Living and testamentary documents often require modifications when people’s circumstances change. Adults facing medical challenges may need to review their existing estate planning paperwork.