The most neglected aspect of estate planning is preparing for the potential of incapacity. While many individuals consider estate preparation in the event of their death, just a small percentage consider disability planning. From the client’s perspective, disability planning should be the more important part of estate planning from the client’s perspective, both because it directly benefits the client and because the likelihood of becoming disabled in the next year outnumbers the likelihood of dying in that period until a person is well past retirement age.
Making Provisions for Disabilities
The client’s advisory team may continue to assist them in managing their assets and adequately providing for themselves and their dependents.
When a client is intellectually incompetent to the extent of being unable to make business or personal care choices, or physically handicapped to the point of being unable to convey orders for the administration of their affairs, disability planning is necessary. When a medical professional determines that a person lacks the mental capacity to make business or personal care choices, they are deemed incompetent.
When a court determines that a person is legally incapable of making business or personal care choices, they are called incompetent. When someone is declared unable, the court may take away their power to make personal and commercial choices and appoint someone else to do so under the supervision of the court. Get started with estate lawyers in CT.
Probate is often thought of as a legal procedure for transferring assets from a deceased person’s name to a beneficiary or heirs. A “live probate” is a kind of probate court proceeding that is unique.
A person who is suspected of being mentally ill and unable to handle their affairs is granted living probate. Someone files a lawsuit against them in probate court, asking the judge to take away their power to make medical and/or commercial choices and transfer it to someone else. It’s a costly procedure in which the individual accused of incompetence pays both parties’ attorneys.
The court will appoint a guardian or conservator if a person is considered incapable of managing their business affairs and there are commercial difficulties to be resolved. The guardian or conservator will be required to deposit a bond to safeguard against theft or mismanagement, as well as provide a full accounting to the court for auditing on a regular basis. A CT elder law attorney can give strong legal advice and build a plan just for you.
Despite the fact that disability before death is unusual, it should be adequately covered. Advisors should treat disability planning in the same way they do estate planning, emphasizing to their clients the need of preparing for the future as well as the hereafter. The greatest way to prepare customers is for all wealth planning specialists to work together. Throughout the planning phases, the client’s disability, and after the client’s death, having a clear knowledge of each other’s tasks and a close connection with the client is critical.