Safeguard Your Family’s Financial Security: Plan Now for Incapacity

Life happens and being prepared for the unexpected can ensure that you’re ready for anything – both emotionally and financially. Likewise, planning for incapacity is a crucial aspect of financial wellness. Whether due to illness, injury, or aging, having a plan in place ensures your finances remain secure and managed according to your wishes. Here are some things to consider:

1. Establish Joint Accounts: Setting up joint bank accounts with a trusted spouse, family member, or friend can provide immediate access to funds for essential expenses during incapacitation. Ensure clear communication and understanding of how these accounts should be managed.

2. Create a Revocable Trust: A revocable trust allows you to transfer ownership of assets to a trustee who can manage them if you become incapacitated. This legal arrangement ensures that assets are used for your care and benefit according to your instructions.

3. Execute Powers of Attorney (POA): A Power of Attorney is a legal document that grants someone you trust the authority to manage your financial affairs if you’re unable to do so yourself. There are different types, including durable POAs that remain effective during incapacity and springing POAs that activate only when you’re incapacitated.

4. Regularly Review and Update Plans: Life circumstances change, so it’s essential to review and update your financial plans regularly. Ensure beneficiary designations, account information, and legal documents reflect your current wishes and circumstances.

5. Seek Professional Advice: Consulting with an estate planning attorney or financial advisor can provide expert guidance tailored to your specific situation. They can help you create a comprehensive plan that safeguards your finances and ensures they are managed effectively during incapacity.

This blog post is shared by Copper Leaf Financial as a service to our clients, business associates and friends. Recipients should not act on the information presented without seeking prior professional advice. Check with your advisor about your specific situation. Additional guidance may be obtained by contacting us directly at 802.878.2731

Preparing for potential incapacity now can help ensure financial security and peace of mind for yourself and your loved ones later. For more details about your options for managing finances during incapacity, download our PDF guide here.