Incapacity Planning

Incapacity planning is a critical aspect of estate planning that involves preparing for the possibility that an individual may become unable to manage their own affairs due to physical or mental limitations. This planning ensures that the individual’s preferences and needs are met and that their financial and healthcare decisions are managed according to their wishes in the event of incapacity.

Incapacity planning typically includes the creation of legal documents that designate a trusted person to act on behalf of the individual. Key components may include:

Durable Power of Attorney: This legal document allows an individual (the principal) to appoint an agent who can make financial decisions on their behalf if they become incapacitated. This can include managing bank accounts, paying bills, and making investment decisions.

Healthcare Proxy (or Medical Power of Attorney): This document allows the principal to designate someone to make healthcare decisions for them when they are unable to do so. The appointed individual can make decisions about medical treatment, surgical procedures, and end-of-life care based on the principal’s previously expressed wishes.

Living Will: A living will outlines the individual’s preferences regarding medical treatment and life-sustaining measures in the event of a terminal illness or a condition where they are unable to communicate their wishes.

Guardianship Designations: In some cases, it may be necessary to designate a guardian for minor children or for an adult who may require assistance in managing their personal affairs. This designation should occur before incapacity arises to ensure a smooth transition.

In the context of Houston and surrounding areas in Texas, it is particularly important to understand state-specific laws regarding incapacity planning. Texas law allows for a durable power of attorney to remain effective even if the principal becomes incapacitated, which is crucial for effective financial management. Additionally, a healthcare proxy must comply with Texas Health and Safety Code provisions to ensure that the principal’s healthcare wishes are honored.

Incapacity planning provides peace of mind, as it allows individuals to maintain control over their lives and ensures that their values and preferences are respected even when they can no longer express them.