PLANNING FOR THE  ”WHAT IFS” AFFECTING YOUR FINANCIAL LIFE BY @AZANSWERS

Incapacity Planning

Incapacity of the mind can be a temporary condition or a long-term decline as one’s mental abilities begin to slowly “diminish.”  The older I am, the more I see situations that differed from expectations.  With more experience, I recognize the value of operating within “my lane of expertise.”  So as a female business owner, Mom, and investor, my advice is generated from that perspective.

What infrastructure do you have in place in case the unexpected occurs?

My 92-year-old Mother recently asked me what would happen to my client’s accounts if I had a stroke. Now let me remind you that I am perfectly healthy and based on my parents’ ages of 92 and 93—I have a long way to go…. Despite this, I do have a succession plan in place since this is “my lane” of expertise.  I diligently prepare for the unexpected in both my personal life and my business. Is your business and family ready? Do you have a plan in place?

There is a lot of emphasis on “succession planning” for people nearing retirement. However, the looming number of unexpected setbacks that may occur throughout life makes having a succession plan at every stage in life a reasonable necessity.

What resources are there to help with succession planning?

• To Do List for Incapacity Planning: I encourage individuals, families, and businesses to be proactive in their life planning for the unexpected. Everyone should have all their legal documents in order and have an established plan for their succession. Check out some key actions needed to prepare a proper life succession plan.
• Trusts: It’s important to emphasize that it is your responsibility to ensure a solid plan is in place should you become incapacitated. I strongly advocate the importance of having a Trust. Trusts provide you with a partner, the trustee, to help share the responsibility for whatever lies ahead. So, if you feel overwhelmed by the thought of going on this journey alone, consider using a Trust.

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