For the past two weeks, we’ve explored how celebrities have planned (or failed to plan) for their deaths. In this third installment of our four-part series, we delve into a topic that may seem even more daunting than death: incapacity. Unlike death, not everyone will face incapacity, but it’s a crucial aspect of future planning. If you become incapacitated, you’ll want to have your choices made well in advance. To illustrate the significance of planning for incapacity, we’ll examine the real-life court case involving Jay Leno and his wife, Mavis. Trust me, it’s no laughing matter.
The Leno case underscores the repercussions of not having a plan for incapacity. From their experience, we can glean valuable lessons about:
What incapacity is and what it isn’t. What a spouse can and can’t do with the other spouse’s financial affairs. How you can end up in court, making all your affairs public knowledge. We’ll cover these topics to highlight their importance, even if you’ve never hosted “The Tonight Show.”
What Incapacity Is and What It’s Not
Incapacity means losing the ability to make sound financial, medical, or legal decisions. It can result from a tragic accident, serious illness, or age-related issues like dementia or Alzheimer’s. Incapacity can happen at any age, and once it strikes, it’s too late to organize your affairs, leaving your loved ones in a bind.
It’s crucial to understand that incapacity happens while you’re alive. This matters because estate planning is often about timing. Documents and plans addressing incapacity become void upon death, requiring a separate set for post-death arrangements.
If you’re familiar with a Power of Attorney, you might assume it covers everything. However, most people don’t realize that this authority ends at the grantor’s death. To handle assets after death, separate court-granted authority is needed unless assets are held in a trust.
Thus, your incapacity and post-death plans must work together to ensure a smooth transition for your loved ones. This brings us to the Leno case.
What Happened in the Leno Family? (And What It Means for You)
Jay Leno’s wife, Mavis, suffers from dementia and can no longer manage her financial affairs. Consequently, Jay had to go to court to gain control over her finances. After a few months, the court granted him the authority he requested.
From this brief account, several key takeaways emerge:
Even though they were married, Jay didn’t automatically have authority over Mavis’s finances. Marital status alone doesn’t grant access to separate assets. Jay had to file a lawsuit to manage Mavis’s finances, a standard procedure in any state. Without advance planning, incapacity leads to court intervention, costing time and money. During the court process, bills may go unpaid, or you might have to cover them from your funds, which can be problematic if you lack immediate access to cash. The court process is ripe for conflict, especially in families with children from previous marriages, potentially prolonging the case and increasing costs. Personal and family information becomes public records, inviting potential scams targeting vulnerable individuals. A Life & Legacy Plan Keeps Your Affairs Private and Your Family Out of Court and Conflict A Life & Legacy Plan addresses the issues Jay Leno faced by ensuring a seamless transition from capacity to incapacity and then to death. With such a plan, assets remain accessible without delay, keeping affairs private and out of court.
When you create a Life & Legacy Plan with us, we ensure it stays updated, reflecting your current circumstances. Unlike many attorneys, we review your plan at least every three years to make necessary updates, preventing it from failing when needed most.
We’re Here for You Throughout All Of Life’s Changes
Incapacity planning is increasingly vital, with dementia cases on the rise. According to Alzheimer’s Disease International, over 55 million people worldwide currently have dementia, expected to rise to 78 million by 2030. Whether due to dementia, severe illness, or an accident, a Life & Legacy Plan ensures you’re prepared for any eventuality.
As a Personal Family Lawyer Firm, we help you create a Life & Legacy Plan to keep your loved ones out of court and conflict. With your plan in place, you can rest easy knowing your wishes will be honored, your loved ones cared for, and your personal information kept private.
