Globally, the single largest cause of disability is dementia. The second largest cause, stroke, can also have a devastating impact on a person’s judgment and decision-making capabilities. Therefore, as a recent article discusses, it is imperative for everyone to include an incapacity plan as part of his or her estate plan.
When it comes to dementia planning, sooner is better. According to Jim Kohles, of the RINA Accountancy Corporation, “This year, 7.7 million new cases of dementia will be diagnosed, and 15 million people will suffer a stroke,” “By the time dementia symptoms become apparent, their competence may already be affected. Strokes, as we know, can be tragically sudden.” If your mental capacity is suddenly diminished before you have had time to prepare an incapacity plan, you cannot control who makes important decisions for you.
Incapacity planning is often overlooked because it represents the middle ground between retirement and death that many people believe they will never have to face. In order to plan for capacity, get disability insurance, execute legal documents that outline your wishes, and designate the people who you would like to make decisions for you should you become unable.
For assistance in creating a plan for your potential incapacity, contact us at (626) 696-3145.
