Chronic illness & estate planning: What you need to know.

If you or a loved one are living with a chronic illness, having the proper estate planning documents prepared is critical. Chronic illness is defined as a medical condition lasting one year or more that requires ongoing attention and intervention and may impede the activities of daily living. Examples include Alzheimer’s, Parkinson’s, Chronic Obstructive Pulmonary Disorder (COPD), Multiple Sclerosis, Lupus, and many others. Chronic illness is more common than you may think – more than 150 million Americans today are living with a chronic illness, with that number expected to rise.

An experienced attorney can help ensure you and your family are protected for whatever the future may hold. Here at Margerie Law, I help clients in Milwaukee, Wauwatosa, Brookfield, Waukesha, and surrounding communities create custom estate plans that fit their needs. Read on to learn more about estate planning and chronic illness.

What estate planning documents should you have if living with a chronic illness? 

If you or a loved one experiences chronic illness, your estate plan will look much the same as someone who does not. However, modifications may be necessary as your condition evolves to better meet your needs. Chronic illness, particularly those that affect mental functioning, may cause you to be unable to understand, and therefore make decisions on your own behalf. That’s why it’s so important to start building your estate plan early and have a trusted attorney on your team who can provide ongoing advice.

Here are the top 5 estate planning documents you will need if living with a chronic illness: 

1. HIPAA releases. HIPPA, or the Health Insurance Portability and Accountability Act, is a law that protects the confidentiality of certain patient health information. This means your health information may not be given out to anyone but you or a person you authorize through a HIPAA release. So, if you’re living with a chronic illness, you will want to choose one or more trusted people who can access your health information in order to successfully interact with your health care providers. This is particularly important if your illness has progressed to the point where you cannot make health care decisions on your own behalf.

In a HIPAA release, you can specify a termination date or, if your illness is one that you will experience for life, choose not to add a termination date. You can also specify the type of medical information you want to be shared and which medical provider you have authorized to disclose such information.

1. Living will. A living will outlines your health care wishes, including type and duration of care, end-of-life instructions, and more. With a living will, you can outline the expected stages of your illness (if known) and your specific instructions for each stage. However, you will also want to keep the language general enough to ensure that your wishes are met should you experience additional health challenges outside the expected trajectory of your illness. A common inclusion in a living will for people with a chronic illness is their preferences around experimental treatments and drug therapies. Another aspect commonly addressed in a living will are instructions for tissue and organ donation and whether or not you authorize an autopsy after death.
2. Healthcare Power of Attorney (HPOA). In drafting an HPOA, you select a trusted person who can act as your proxy, or agent, in making healthcare decisions on your behalf should you become unable to do so. With certain chronic illnesses, you can anticipate what may happen at certain phases, and what type of decisions you would want to make for yourself at that time. This can all be outlined in an HPOA. You can also authorize the agent to take over guardianship, make residence decisions, and fulfill other critical duties on your behalf.
3. Financial Power of Attorney (FPOA). An FPOA is a legal document in which you authorize a trusted person to make financial decisions on your behalf should you become incapacitated. Types of responsibilities outlined in an FPOA may include overseeing tax, legal, and financial matters once you become unable to do so yourself. Particularly for people living with a degenerative chronic illness, such as Alzheimer’s, this document should be tailored to your specific wishes concerning the amount of power you wish to give the agent at each stage of your illness. An experienced estate planning attorney can help you navigate this complex decision-making process.
4. Revocable trust. Commonly used in estate planning as a method for avoiding probate, those living with a chronic illness may find additional benefits in drafting a revocable trust. For example, you may use a revocable trust to dictate that a care manager provides a yearly assessment of your health status to specified people. You can also authorize a “trust protector” to provide additional oversight of your financial holdings or an independent CPA to ensure proper management of your taxes.

Estate planning can be complex under the best of circumstances. But for people living with chronic illness, understanding what documents you need to protect your future can be even more difficult. At Margerie Law, I provide local customers with expert estate planning law services throughout Milwaukee County and beyond. Give me a call to schedule a consultation today.