Incapacity Planning for Millennials and Gen Z, Part II: Powers of Attorney

Previous articles in our e-newsletter have discussed incapacity planning through powers of attorney as a critical component of estate planning.

However, there are a few reasons why it is especially important for people in their 20s and 30s to plan for the possibility of incapacity through powers of attorney.

1. Appoint who YOU want to make decisions on your behalf.

A Health Care Power of Attorney and Financial Power of Attorney allows you to pick who you want to be in charge of making medical, financial, and legal decisions on your behalf if something were to happen to you and you were unable to make medical decisions on your own.

Maryland and the District of Columbia have default rules in place that presume you want a spouse, adult child, and then a parent to make health care decisions if you are unable to do so for yourself. However, if you prefer someone other than who is in the statute, it is very important to have a Health Care Power of Attorney in place that identifies who you want to make your healthcare decisions.

This is especially important for:

• Single clients who may not want a parent making their decisions. If you’re single, by default, it would be a parent in charge of decision-making.
• Folks who are engaged or in a long-term committed relationship who would prefer a fiancé or significant other making these decisions.
• Clients who live far away from family (i.e., undergrad or grad students) as it might make more sense for you to nominate someone who lives close by who would be able to reach you more quickly quicker than a parent who lives far away.

2. Nominate your guardian.

Unlike the “safety net” of default laws in Maryland and the District of Columbia in terms of health care decision-making, there are no default rules in place when it comes to your financial or legal decisions.

If you become incapacitated without having powers of attorney in place, your loved ones will need to petition the court for a guardian/conservator to be appointed to represent your financial and legal interests.

Britney Spears’ case has familiarized many people with the concepts of guardianships and conservatorships and the setbacks of having someone *toxic* in that role.

Rather than making your family or friends go through the guardianship process, which can be emotionally and financially burdensome in an already-challenging time, or having someone you don’t want to be in charge of your finances being appointed by the court, you can avoid the entire process by simply creating a Financial Powers of Attorney

3. Decide what level of medical intervention you would want to receive.

A Living Will allows you to provide guidance to your Health Care Surrogate when it comes to how much medical intervention you would want to receive if you were unable to communicate with doctors.

Many times our clients feel most strongly about the intervention that they would want to extend (or not extend) their life.

Moreover, a Living Will permits you to provide special instructions in case you are pregnant and suffer a serious medical crisis.

Concluding Thoughts

Incapacity can happen to anyone at any age, no matter how invincible we feel. While we hope our loved ones never need to use our Power of Attorney documents, we hope even more that we can avoid a toxic situation by having these simple documents in place. You, your friends, and your family may even feel *lucky*!

Could you or the Millennial or Gen Z in your life benefit from estate planning? Contact Liz Farley at (301) 656-1177 x302 or lfarley@bulmandunie.com.