Estate planning for the chronically ill
There are certain considerations that should be kept in mind for those with chronic illnesses. Before addressing this issue, there should be some clarification as to the definition of “chronically ill.” There are at least two definitions of chronically ill.
The first is likely the most common meaning, which is an illness that a person may live with for many years.
Diseases such as diabetes, cardiovascular disease, lupus, multiple sclerosis, hepatitis C and asthma are some of the more familiar chronic illnesses.
Contrast that with a legal definition of chronic illness which usually means that the person is unable to perform at least two activities of daily living,
such as eating, toileting, transferring, bathing and dressing,
or requires considerable supervision to protect from crisis relating to health and safety due to severe impairment concerning mind, or having a level of disability similar to that determined by the Social Security Administration for disability benefits.
Having said all of that, the estate planning such a person may undertake will likely be similar to that of a healthy person, but there will likely be a higher sense of urgency and it will be much more “real” and less “hypothetical.” Most healthy individuals view the estate planning they establish as not having any applicability for years, perhaps even decades.
Whereas a chronically ill person more acutely appreciates that the planning they do will have real consequences in their life and the life of loved ones. Some of the most important planning will center around who the person appoints as their health care decision maker and also who is appointed to handle financial affairs. A will and/or revocable living trust will play a central role in the person’s planning as well. Care should also be taken to address possible Medicaid planning benefits. A consultation with an estate planning and elder law attorney is critical to ensuring all necessary planning steps are contemplated and eventually implemented.