Medical challenges often make people aware of their mortality more quickly than many other experiences. People facing progressive or terminal medical conditions often have to think carefully about what may happen in the future.
Frequently, people focus so much on investigating their diagnosis and preparing for treatment that they may fail to address other important practical considerations. Those who have not already established estate plans may want to draft living and testamentary documents after a doctor diagnoses them with a significant medical challenge. People who have existing estate planning documents may need to review and expand their plans to ensure they have adequate protection regardless of what the future brings.
How can medical challenges affect estate planning?
By creating new needs
People facing significant medical issues may have to consider estate planning issues that didn’t seem important previously. For example, an individual who never thought about the possibility of long-term incapacitation may now need to plan for that exact scenario.
A testator may want to establish durable powers of attorney to protect them in case they experience permanent or protracted incapacitation. They need to make arrangements for other people to manage their finances and make decisions regarding their medical care.
In fact, they may need to establish or revise an advance medical directive explaining their preferences regarding care. People’s opinions about what type of medical support they want to receive often change when their medical status shifts.
By triggering concerns about loved ones
People worried about their health and finances as they face a major medical challenge may also worry about the stability of their loved ones. People who have never had to consider what may happen to their families after they die may find themselves worrying about their children or an adult sibling who has special needs.
Testators who recognize that their condition could leave their families vulnerable may need to start planning to protect themselves and their dependents. They may need to draft wills or fund trusts to protect resources from creditor claims. They may need to consider who could take over their parental responsibilities.
A personal medical emergency can put a lot of stress on an individual diagnosed with a major condition. While focusing on recovery is important, people also need to think about protecting themselves and their loved ones. Creating, revising or expanding an estate plan can be a smart response to a doctor diagnosing an individual with a serious medical condition.