Loss of Capacity
Capacity, in estate planning, refers to the ability to make your own decisions. On the other hand, the loss of capacity can be a great concern because the person can be influenced by other family members, business partners, or others interested in perpetrating fraud.
What if you become incompetent and unable to manage your own affairs? Without a valid estate plan, the courts will select the person to manage your affairs as they see fit. With a plan, you pick that person through a Power of Attorney or a Living Trust.
There are two types of Power of Attorney – a Financial Power of Attorney allows the person to manage financial affairs while the other Power of Attorney handles their health care decisions. However, in Georgia, the Advance Health Care Directive combines the Living Will with a Power of Attorney for health care into one document.
Although you can do a Power of Attorney by yourself, it’s essential to be very careful about Georgia laws and guidelines, so it may be best to leave it to the professionals.
Dying Without a Will
Children with Special Needs
Without a plan, a child with special needs risks being disqualified from receiving Medicaid or SSI benefits and may have to use his or her inheritance to pay for the child’s care.
With a plan, you can set up a Special Needs Trust that will allow the child to remain eligible for government benefits while using the trust assets to pay for non-covered expenses.