Planning for the possibility of incapacity: Financial and medical decisions

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Incapacity is often overlooked in wealth-planning discussions. For families with significant wealth and complex structures, the absence of a clear plan may lead to frozen assets, family disputes, uncertainty about decision-making authority, and even court intervention.

Effective financial planning typically relies on tools such as durable powers of attorney, trust structures with mechanisms for replacing decision-makers, and family agreements that define responsibilities and avoid conflicts.

On the medical side, living wills and healthcare mandates help ensure that personal preferences are respected, especially regarding invasive treatments, resuscitation, palliative care, and other sensitive matters. In some jurisdictions, individuals may also express preferences related to end-of-life choices, including euthanasia or orthothanasia, within the limits of local law.

For internationally mobile families, an additional challenge lies in ensuring that documents are valid and enforceable across jurisdictions, consistent with corporate structures, trusts, and wills, and executed in accordance with local formalities.

Ultimately, incapacity planning is a key layer of protection, especially for those with responsibilities in family businesses and substantial wealth. And the earlier it begins, the more coherent, effective, and aligned it will be with the individual’s wishes and the family’s values.