Planning for Incapacity: Who Will Make Legal and Healthcare Decisions When I Can’t?

When most people think of “estate planning,” they think of preparing a Will or trust to dispose of their assets when they die. You may be surprised to learn that a properly prepared estate plan should address more than just who will receive your possessions after your death. It should also identify who will have control over your person and your assets if you are unable to make business, financial, legal, or healthcare decisions for yourself.

A Power of Attorney authorizes another person to handle your affairs if you cannot, even temporarily. A Property Power of Attorney allows someone else to handle business, legal, and financial matters on your behalf. A Healthcare Power of Attorney authorizes someone else to make medical and healthcare-related decisions for you if you cannot make them yourself.

What Is a Power of Attorney?

A Power of Attorney is a document you sign authorizing another person to act on your behalf if you cannot handle your own affairs due to illness, injury, legal incapacity, or absence. A Power of Attorney ensures that your business, legal, financial, and medical matters are managed according to your wishes by someone you choose, who will understand and abide by your preferences.

There are two broad categories of powers of attorney.

• A Property Power of Attorney identifies someone who will manage your business, legal, and financial affairs in your stead.
• A Healthcare Power of Attorney identifies someone to make medical and healthcare-related decisions if you cannot make them yourself.

Why You Need a Power of Attorney

A Power of Attorney ensures that someone you trust can legally act on your behalf if you are unable to make decisions due to illness, injury, legal incapacity, or absence. A Power of Attorney provides clarity, control, and peace of mind in uncertain situations. The person you designate will manage your business, legal, financial, and healthcare matters according to your wishes. Without a Power of Attorney, your loved ones may need to go through a lengthy and costly court process to gain the legal authority to help you.

Types of Power of Attorney Documents in Nevada

Nevada recognizes two broad types of Power of Attorney documents: a Nevada Statutory Power of Attorney and a Nevada Advanced Health-Care Directive.

Power of Attorney for Legal, Business, and Financial Decisions

A Nevada Statutory Power of Attorney authorizes another person to act on your behalf in business, legal, and financial matters. The scope of a Durable Power of Attorney can be limited or broad. For example, a limited Power of Attorney might only authorize another person to pay your bills, while a broad Power of Attorney could authorize your agent to handle all your business and financial affairs.

A Nevada Statutory Power of Attorney is effective immediately unless you specify otherwise. Some people are concerned about giving up control to someone else and do not want to sign a Power of Attorney that is effective immediately. However, signing a Power of Attorney does not mean you must stop handling your own affairs. It simply means that another person can handle your affairs if you are unavailable or unable to do so.

Your Power of Attorney should also state that it will be valid even if you become disabled. If the document does not include this language, the person you appoint will not be able to use the power of attorney if you are disabled.

You could choose to make your Nevada Statutory Power of Attorney only effective if you are disabled. However, in this situation, your agent cannot act on your behalf unless you become disabled, and they would likely need a certification of disability from a doctor before they can act.

The Nevada Statutory Power of Attorney lasts as long as you are living unless revoked by you. When a person dies, the Power of Attorney dies with them. You can terminate a power of attorney at any time by revoking it or executing a new power of attorney.

Nevada Advanced Health-Care Directive

A Nevada Advanced Health-Care Directive authorizes another person to make medical and healthcare decisions on your behalf. Like a Nevada Statutory Power of Attorney, a Nevada Advanced Health-Care Directive is effective immediately unless you specify otherwise and is valid as long as you are living unless you revoke it or execute a new one.

If you do not have a Nevada Advanced Health-Care Directive and cannot make medical decisions for yourself, someone may need to go to court to have you declared incompetent before they can make medical decisions for you. This can be a costly and time-consuming process that could delay important medical care.

Planning for Incapacity: It's Not Just for the Elderly

We often think of legal incapacity as something that only happens to older adults who may suffer from Alzheimer’s disease or dementia. If you are young or middle-aged, you might think you have decades before you need a power of attorney. However, incapacity can strike at any age due to unforeseen accidents, sudden illness, or an unexpected medical event.

While it is natural to feel that planning for incapacity is something to address later in life, the truth is, waiting can have significant consequences. Without a power of attorney, if an unexpected event renders you incapable of making decisions, you lose control over crucial aspects of your life. This can include who manages your financial affairs, makes critical healthcare decisions on your behalf, and ultimately safeguards your well-being.

Consider the implications of a sudden accident or severe illness. Without a power of attorney, your loved ones may face significant legal hurdles and delays in obtaining authority to act on your behalf. This can lead to emotional distress and financial complications during an already challenging time. Furthermore, without documenting your wishes, decisions made by others about your medical treatment or financial management might not align with your values and preferences.

Regardless of age, proactively planning for potential incapacity is a responsible step to protect yourself and your loved ones. Powers of Attorney ensure you have someone you trust who is ready and legally authorized to make necessary decisions if you cannot make them yourself. This can provide peace of mind knowing your affairs will be handled according to your wishes, no matter what the future may hold.

Contact the Vander Laan Law Firm for Comprehensive Estate Planning Services

Nevada estate planning attorney Natalia Vander Laan serves her clients from her offices in Minden and Carson City, Nevada. She proudly works with individuals and families throughout Douglas County, Carson City, and Lyon County. Discover what makes her approach to estate planning unique. Call (775) 461-2897 or contact our law office today to schedule a free consultation to discuss your needs and how Natalia can help.