Incapacity planning is important when you are serious about preparing yourself for all the eventualities of aging. It can seem as though it is unlikely that you will ever become unable to make sound decisions on your own, but the statistics tell a different tale.
According to the Alzheimer's Association one out of every eight individuals who has achieved senior citizen status will suffer from the disease. The possibility continues to rise as you get older with upwards of 40% of people who are 85 years of age being Alzheimer's sufferers.
People who suffer from Alzheimer's disease often find it impossible to make sound decisions due to Alzheimer's induced dementia. Of course, there are other causes of incapacity so this is something to take seriously.
Incapacity planning typically involves executing documents called durable powers of attorney. You must select an agent which is referred to as your attorney-in-fact to make decisions on your behalf should you become unable to do so.
You may find that the person that you would like to see making your financial decisions differs from the individual who would be the health care decision-maker. Because this is the case you will find that there are two types of powers of attorney - the financial or property power of attorney and the health care power of attorney, which is also called an advance directive.