When you or a loved one receives a serious health diagnosis, you may not necessarily have a fear of what could go wrong, but rather a shift in what you want to prioritize in your life. Whether that be the ways you spend your time or how you navigate your relationships with loved ones, a diagnosis can reframe your perspective on the world.
One way you can protect your time, your family, and your energy is by organizing your affairs. The stress and concern that comes with not having your affairs in order can be overwhelming and debilitating during a health crisis. Estate planning after a serious health diagnosis helps you get ahead of that stress and quiet the alarm bells that may be ringing in your ears from financial and legal concerns.
Here are some ways you can reclaim your energy during this stage of life.
Why This Moment Matters
A diagnosis often becomes the catalyst for estate planning that people otherwise put off. It is not about preparing for the worst; the goal of estate planning is to…
- Make sure your wishes are reflected in your plan
- Take the burden of legal stress off your loved ones’ minds
- Prevent state law or courts from dictating your family’s future
- Give you and your family clarity and confidence during an already difficult time
A national survey found that 43 percent of people say a serious medical diagnosis or health concern would be the very thing that finally motivates them to create a will. You don’t have to wait for that moment to become a crisis.
Long Term Care Planning and Life Care Planning
Some diagnoses come with the inevitable and anticipated need for long term care, whether that be at-home services, nursing home care, or a specialized facility like memory care. With additional services comes additional financial stress, which can be managed—and in some cases avoided—with proper estate and financial planning. In Florida, nursing home care alone can cost well over $100,000 a year, with private rooms often exceeding $140,000, and in-home or memory care adding further to that number; therefore proper planning is critical.
Long term care planning seeks to address how you can pay for long term care, protect your assets, and leave as much as possible to your loved ones. This type of planning can include Medicaid planning and asset protection planning to help preserve what you’ve built for your family. With the complex asset and income limits that come with qualifying for services like Medicaid, it is important to consult with an attorney before making any financial decisions.
Moreover, services like Life Care Planning can help you find, get, and pay for quality care. A Life Care Plan brings together your family, an elder law attorney, and a dedicated elder care coordinator, bridging the gaps in knowledge and communication that can sometimes happen in the care coordination process. Having a Life Care Plan unifies a team of professionals in your corner, so you can focus on what matters most.
The Two Tracks to Immediately Address: Healthcare Planning and Appointing Representatives
Before creating a long term care plan or a life care plan, there are two immediate priorities for those with a recent diagnosis: healthcare planning and appointing representatives.
Healthcare Planning (Who Speaks for You Medically): A health crisis can happen at any time, but a diagnosis brings a level of certainty that you will need to define who will speak for you, and how, if you become temporarily or permanently unable to communicate your own medical wishes. Documents to determine your medical wishes include…
- Healthcare power of attorney: designates a trusted person, your healthcare agent, to make medical decisions on your behalf if you’re unable to do so yourself.
- Living will: outlines your wishes for life-sustaining treatment if you are in a terminal or end-stage condition with no reasonable chance of recovery.
- HIPAA authorization: gives the people you choose the legal right to access your medical records and speak directly with your doctors.
Appointing Representatives (Who Manages Things If You Can’t): While healthcare planning addresses your medical wishes, appointing the right representatives ensures someone you trust can step in to manage your finances and other responsibilities if you become unable to do so yourself. The top two considerations include…
- Financial power of attorney: authorizes a trusted person, your financial agent, to manage your accounts, pay bills, and handle other financial matters on your behalf.
- Successor trustee provisions (if a trust exists): allow the backup trustee named in your trust to step in and manage trust assets on your behalf, without the need for court involvement.
A Note on Beneficiary Designations
Another important consideration is reviewing your beneficiary designations to make sure that the right people will inherit and reap the benefits of your estate. Without updated beneficiary designations, people can stand to inherit assets that you would prefer to leave to someone else. For example, if you have an outdated document in place, you may have an ex-wife or an estranged brother who could inherit your home over your children.
Keeping your plan up to date is a critical part of the estate administration process.
The Practical First Steps After Diagnosis
There are a few key steps you can take immediately to help begin the process of updating your estate plan after a diagnosis:
- Gather key documents and account information into one place
- Ensure digital assets like your email, social media, and payment apps are accessible to your loved ones
- Loop in a trusted person early, like a friend or family member, before you even consult with an attorney
Early action can make the difference between a plan that reflects your true wishes and a difficult, drawn-out process left for the courts to sort out on your behalf.
How We Can Help
The estate planning process does not just offer protection for your family, but also clarity and a reduced mental load for the person facing the diagnosis. The partnership between your family and a law firm is essential to making sure your family can focus on each other while a professional team focuses on the legal complexity.
At Florida Elder Law & Legacy Planning, we offer elder law services, life care planning, Medicaid planning, long term care planning, and more. We strive to help your family reclaim the valuable time and energy that a serious health diagnosis brings. Schedule a consultation today to start the conversation, instead of just creating a checklist.
