Welcome to the third installment of our four-part series on celebrity estate plans. Over the past couple of weeks, we’ve delved into how celebrities have planned – or failed to plan – for their deaths. Now, let’s tackle a topic that’s less discussed but equally important: incapacity. While it’s not something anyone likes to think about, it’s a crucial aspect of future planning. If you ever face incapacity, having made decisions beforehand is essential.
To illustrate why incapacity planning is so important, we’ll look at the real-life case involving Jay Leno and his wife, Mavis. And trust me, this situation is anything but a laughing matter.
Understanding Incapacity
Incapacity refers to the loss of your ability to make sound financial, medical, or legal decisions for yourself. This can happen due to an accident, a serious illness, or conditions like dementia or Alzheimer’s. Unlike death, incapacity can strike at any age and unexpectedly. Once it happens, it’s too late to organize your affairs, and your loved ones may face unnecessary difficulties.
It’s important to understand that incapacity occurs while you’re still alive. Estate planning often involves timing – your incapacity plan and your post-death plan need to work together seamlessly. For instance, a Power of Attorney lets someone manage your affairs while you’re alive, but this authority ends at your death. After you pass away, a different set of documents and plans are required.
Lessons from the Leno Case
Jay Leno’s case provides some valuable insights into incapacity planning:
- Marital Status Doesn’t Grant Automatic Authority: Even though Jay and Mavis Leno have been married for over 40 years, Jay didn’t automatically have the authority to manage Mavis’s financial affairs when she became incapacitated. This highlights that, regardless of marital status, separate assets are still considered individual property. Without prior planning, a spouse might need to go to court to gain control over the other spouse’s assets.
- The Court Process Can Be Lengthy and Costly: Jay had to file a lawsuit against his own wife to get the necessary authority. This process can be time-consuming and costly, potentially leaving bills unpaid and financial decisions unmade during the wait. This might mean covering expenses from your own funds or facing delays if immediate access to cash isn’t available.
- Public Exposure of Personal Information: The court process requires disclosing personal and financial information, which can become public record. This exposure isn’t due to celebrity status but is a consequence of going to court. Scammers are often on the lookout for vulnerable individuals, making privacy protection crucial.
The Better Way: Life & Legacy Planning
A Life & Legacy Plan addresses the issues highlighted by the Leno case. It ensures a smooth transition from incapacity to death without court delays or public exposure. With a comprehensive plan, your assets are accessible when needed, and your affairs remain private.
When you work with me on your Life & Legacy Plan, we’ll ensure it evolves with your life. Regular updates are essential, as an outdated plan can lead to complications just like in the Leno case. I review and update your plan at least every three years to keep it current.
We’re Here to Support You
Planning for incapacity is more important than ever, especially with rising dementia rates. According to Alzheimer’s Disease International, over 55 million people worldwide have dementia, with that number expected to rise to 78 million by 2030. Whether due to dementia, another illness, or an accident, a Life & Legacy Plan will help ensure you’re prepared.
If you have concerns or need to update your estate plan, schedule a Life and Legacy Planning Session with me. Let’s ensure you and your loved ones are protected, no matter what the future holds.
At Cheever Law, APC, we don’t just draft documents; we ensure you make informed and empowered decisions about life and death for yourself and the people you love, starting with a valuable and educational Life & Legacy Planning Session. This will allow you to get more financially organized and make the best choices for the people you love. If you have already completed your estate plan, we will review that plan at your Life & Legacy Planning Session to ensure that it will work the way you intend and address any holes or gaps that may be present if circumstances have changed since you executed your plan.
To learn more about our one-of-a-kind systems and services, contact us or schedule a no-obligation 15-minute introductory phone call today.