Blogs from May, 2020

The United States is seeing an increase in diseases affecting mental capacity (like Early Onset Dementia) occurring more frequently and at younger ages than was previously known in earlier decades. These diseases often impact an individual without anticipation or preparation and the symptoms experienced can drastically increase in severity over a short period of time. This causes numerous issues and hardships that affect both the individual and their loved ones.

Cognitive degeneration diseases have both medical and legal consequences. Regarding the legal issues, it is necessary to execute the proper documents to manage your affairs before you or your loved ones surpass the threshold of insufficient mental capacity to legally sign documents. Here at Crain & Wooley, we specialize in pre and post disability planning. 

We offer Medical and Financial Power of Attorney documents that appoint an Agent to make decisions for you if you lack the capacity to do so. Through the strategic use of both these documents, your agent can potentially qualify you for your state’s Medicaid program. At the very least, your Agent will have the full authority to make financial and medical decisions to assist you and your family in coping with the loss of mental capacity. These documents are considered necessary when preparing for disabilities.

Please, act and pre-plan. Schedule a free consult today to learn more.

Here at Crain & Wooley, we constantly battle two things: 

1. Bad advice given by others who do not specialize in Estate Planning
2. Procrastination by those who know they need to update or create an estate plan but put it off for a later date/age

Estate Planning is not reserved for individuals who fall into older demographics. There is a common misconception that only older individuals should plan for their potential disability. This is entirely wrong because you may encounter unanticipated medical events that affect you, your spouse, or both of you placing you into a life-threatening condition. If we knew when these events would occur, we would likely try to avoid them. This is simply not the case, and the best way to prepare for the unexpected is by having the proper disability planning documents in place. These documents consist of appointing Medical and Financial Power of Attorneys and by executing a Declaration of Guardian in advance of a medical emergency.  

A Medical Power of Attorney allows for your appointed “Agent” to make decisions for you, in consultation with your doctors and physicians, if you are unable to do so due to being mentally or physically incapacitated. Appointing an Agent through a Financial Power of Attorney allows your Agent to work with financial institutions and sign documents, contracts, pay bills, and handle affairs within your estate. At Crain & Wooley, we recommend that both single and married individuals of all ages should have these documents updated to avoid unnecessary burdens to decision-making during already emotionally trying times.

If you do not have both Medical and Financial Power of Attorneys in place and you become incapacitated, then your loved ones will have to initiate a Guardianship proceeding through the courts to give individuals legal authority to manage your affairs for both your estate and your person. It can take months to get in front of a judge and result in large legal bills just to allow someone to access your financial accounts or to make medical decisions on your behalf. All of this can be avoided with up to date Power of Attorney documents. The judge does not factor in what age the proposed incapacitated ward is. The judge will assess the need for guardianship by making a legal decision based on the level of incapacity of the proposed ward. People of ALL AGES can be deemed incapacitated and without the proper planning, your assets and health could be at risk due to procrastinating your estate plan.

To learn more about disability planning, contact us with your questions today.

When starting to get their “affairs in order”, most people think about wills, and maybe even a trust. What is often overlooked when considering estate planning is the role that both Medical and Financial Power of Attorney documents play within the plan. Power of Attorney documents are effective during your lifetime and cease to have authority upon your passing. 

The powers granted in these documents terminate upon your death.

The Medical Power of Attorney document is critical to proactive estate planning. At Crain & Wooley, we not only include the 2018 Texas statutory requirements but also incorporate three necessary components. 

1. Appointing individual(s) to be your “Agent” that legally allows them to assist in making medical decisions in the event of your incapacity
2. Your preferences if you reach an irreversible or terminal condition, often referred to as a living will or advanced directive
3. The HIPAA release language that allows your appointed “Agent” to consult with your doctors and physicians to discuss medical conditions and treatments on your behalf. 

By simply completing this document and having it apart of your estate plan, you can save yourself, family, and friends from facing additional hardships if you find yourself facing serious medical conditions. We recommend completing a Medical Power of Attorney with the rest of your estate plan when you have the requisite mental capacity so that you and your intentions are properly documented. 

The Financial Power of Attorney is another useful and necessary document to execute when updating or creating your estate plan. Like the Medical Power of Attorney, you appoint an “Agent” that can act on your behalf if you were unavailable or mentally incapacitated. Your Agent would be able to access your bank accounts and other assets to continue paying bills and other expenses so that your estate does not get behind when you are unavailable to manage day-to-day affairs. 

We recommend utilizing a Financial Power of Attorney, as opposed to adding a joint owner or co-signor on a bank account. This avoids unwanted liability exposure. 

Your Agent acting through your Financial Power of Attorney can also use this legal document to qualify you for Medicaid if needed. Your Agent could perform a Medicaid spend-down of your estate in the event of your incapacity, which allows you to qualify for the state’s Medicaid benefits to cover medical expenses – like long term care. Having a Financial Power of Attorney in place will alleviate issues of frozen accounts and unpaid expenses if you are mentally or physically unable to sign documents or manage your affairs.