As a loved one gets older or as you contemplate your own need for estate planning, you want to make sure that people in your family have planned for their own future. This means not only considering what happens to their assets after they pass away, but who will step in and manage their affairs in the event that they become incapacitated.
What to Do When a Loved One Shows Signs of Incapacity
If a loved one begins to show signs of memory loss or inability to handle their own affairs or understand what’s happening, you may be wondering whether or not it is too late to have important estate planning documents prepared. This conversation comes up frequently when someone in the family is showing early signs of Alzheimer’s or has received a formal diagnosis of the same.
The Importance of Legal Capacity
In order to execute any form of a legal document, the person signing that document must have what is known as capacity.
The required capacity for each type of document may vary by state laws. In Massachusetts, for example, executing a will requires that a person is ‘of sound mind’ per MGLC.190b S.2-501. This means that the person must have the mental capacity to understand the people who will receive their assets, the nature and extent of the property itself, and the disposition they are making. For a revocable trust, sound mind means that the person is at least 18 years of age, has the capacity to dispose of any property, and has the intention of creating a trust.
The Role of Powers of Attorney and Health Care Proxies
With the creation of durable powers of attorney or health care proxies, these documents ensure that another person can make medical or financial decisions on behalf of the person who created the document. The duties and powers that are being delegated to the agent must be understood by the person creating it. Work with a knowledgeable attorney for all document creation help.
