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Preparing for the unexpected: Crisis planning tips

On Behalf of | Oct 11, 2024 | Estate Planning |

Life is full of surprises, and while it’s important to manifest smooth sailing, sometimes unforeseen events can disrupt even the best-laid plans.

This is where crisis planning, an essential part of estate planning, comes in. With the right preparation, individuals can safeguard their assets and protect their loved ones even during the most challenging times.

Why is crisis planning crucial?

Crisis planning empowers individuals to take the necessary steps to help ensure that their assets and personal wishes are protected if they’re unable to make decisions for themselves due to:

  • Sudden illness
  • Incapacitation
  • An emergency

Without a crisis plan in place, critical decisions could be left up to the court, leaving families in a stressful and potentially contentious situation. Integrating crisis planning into estate strategies can alleviate family stress and help protect an individual’s assets and health care preferences.

Common crisis scenarios

To better understand the importance of crisis planning, individuals should consider a few common scenarios that could lead to a personal or financial crisis. Suppose an accident or illness leaves an individual unable to manage their finances or make healthcare decisions. In that case, having the proper legal documents in place can help ensure their wishes are respected.

Most people can agree that family dynamics can sometimes shift unexpectedly. A divorce, death or conflict among beneficiaries can create legal complications for any estate. A well-thought-out crisis plan reduces the chance of conflict or costly legal disputes.

Tips for preparing for the unexpected

Individuals should consider exploring durable powers of attorney (POAs) to help ensure that they have trusted individuals to make financial decisions on their behalf, should they become incapacitated.

Individuals can also benefit from having a healthcare directive or living will that outlines their medical preferences in the event that they’re unable to communicate.

Some might not be aware that, unlike a will, a revocable living trust is resourceful during their lifetime. This document empowers individuals to protect their assets and pass them on to beneficiaries without the need for probate. In case of incapacitation, the trust’s trustee can step in and manage the individual’s affairs, helping to ensure continuity and security.

Preparing for the unexpected doesn’t have to be daunting; in fact, doing so can provide peace of mind. Crisis planning is not about dwelling on worst-case scenarios but about empowering oneself with a clear, actionable plan in case the unexpected occurs. With transparent legal guidance, individuals can put the proper legal protections in place to help ensure their personal wishes are respected, no matter what life throws their way.

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