As we observe the increasing prevalence of Alzheimer’s and other forms of dementia, it becomes crucial to address how these conditions can impact estate planning. Alzheimer’s disease can lead to a decline in cognitive function, affecting an individual’s ability to make sound decisions. To protect the integrity of your estate planning documents and ensure your wishes are honored, incorporating a Declaration of Capacity can be invaluable.
Here’s what you need to know about using a Declaration of Capacity in your estate planning.
Understanding Alzheimer’s and Its Impact on Estate Planning
Alzheimer’s disease is a progressive neurological disorder that leads to memory loss, cognitive decline, and impaired judgment. As the disease progresses, it can significantly impact an individual’s ability to make informed decisions regarding their finances, healthcare, and overall estate planning.
Early Stages:
Individuals may still be able to participate in estate planning but might experience memory lapses or difficulty with complex tasks.
Middle Stages:
Increased confusion and cognitive impairment can hinder decision-making abilities.
Late Stages:
Severe cognitive decline often renders individuals incapable of managing their affairs independently.
The Importance of Capacity in Estate Planning
Capacity refers to the legal ability to understand and make decisions. For estate planning documents to be valid, the individual creating them must have the capacity to understand their implications. Alzheimer’s disease can raise questions about the validity of these documents if executed when cognitive function is impaired.
What is a Declaration of Capacity?
A Declaration of Capacity is a legal document that verifies an individual’s mental competence at the time they execute their estate planning documents. It typically involves an evaluation by a medical professional who certifies that the individual has the mental capacity to make informed decisions.
Benefits of a Declaration of Capacity
Incorporating a Declaration of Capacity in your estate planning provides several important benefits:
Validation of Documents:
Ensures that your will, trust, power of attorney, and other estate planning documents are legally valid and less likely to be contested.
Prevents Disputes:
Reduces the likelihood of family disputes or legal challenges regarding your mental capacity at the time of signing the documents.
Peace of Mind:
Provides assurance to you and your loved ones that your estate planning decisions are respected and followed.
Steps to Incorporate a Declaration of Capacity
To effectively incorporate a Declaration of Capacity into your estate planning, follow these steps:
1. Early Planning:
Start your estate planning as early as possible, ideally before any signs of cognitive decline appear.
2. Medical Evaluation:
Schedule an evaluation with a qualified medical professional, such as a neurologist or geriatric psychiatrist, who can assess your cognitive function.
3. Documentation:
Obtain a written statement from the medical professional attesting to your mental capacity at the time of the evaluation.
4. Legal Incorporation:
Work with an experienced estate planning attorney to incorporate the Declaration of Capacity into your estate planning documents.
Additional Estate Planning Considerations for Alzheimer’s
In addition to a Declaration of Capacity, consider these estate planning strategies to protect your interests:
Durable Power of Attorney:
Appoint a trusted individual to manage your financial affairs if you become incapacitated. Ensure this document is in place early.
Advance Health Care Directive:
Specify your medical care preferences and designate a healthcare proxy to make decisions on your behalf.
Revocable Living Trust:
Transfer your assets into a trust that can be managed by a successor trustee if you are no longer able to do so.
Regular Reviews:
Periodically review and update your estate planning documents to reflect any changes in your health, financial situation, or family circumstances.
As we recognize the challenges posed by Alzheimer’s disease, it becomes clear that proactive and thoughtful estate planning is essential. A Declaration of Capacity is a crucial tool for ensuring that your estate planning documents remain valid and your wishes are honored, even in the face of cognitive decline. By taking these steps, you can protect your legacy and provide your loved ones with the guidance and security they need during difficult times. Consult with an experienced estate planning attorney to create a comprehensive plan that addresses all aspects of your future care and asset management.
