For the last two weeks, we’ve discussed celebrities and how they planned (or didn’t!) for their deaths. In this third installment of our four-part celebrity series, we tackle a topic that might seem worse than death: incapacity. Unlike death, not everyone will become incapacitated. Yet, it’s an essential part of your future planning because if you do become incapacitated, you want to have made your choices well before that occurs. To illustrate the importance of planning for incapacity, we’ll examine the real-life court case involving Jay Leno and his wife, Mavis. I assure you, it is no laughing matter.
The Leno case highlights what happens when you or a loved one becomes incapacitated and what can happen if you have not planned in advance. From the Leno case, we can learn several lessons, including:
- What incapacity is and what it is not.
- What a spouse can and can’t do with the other spouse’s financial affairs.
- How you can end up in court with all your affairs becoming public knowledge.
We’ll address all three topics here, emphasizing why these matter, even for those of us who have never hosted “The Tonight Show.”
What Incapacity Is and What It’s Not
If you become incapacitated, you’ve lost the ability to make sound financial, medical, or legal decisions for yourself. You may even make harmful decisions or be unable to communicate at all. Incapacity can result from several circumstances, including a tragic accident, a serious end-of-life illness, or aging-related challenges, such as dementia or Alzheimer’s. Like death, incapacity can strike at any time and at any age. Once it does, it’s too late to get your affairs in order, and your loved ones will be stuck with a mess.
It’s important to note that incapacity occurs while you’re alive. Estate planning, to some degree, is all about timing. You can have a plan and create documents that deal with your incapacity. However, those documents become null and void once you die, and another plan and set of documents are needed.
This matters because, if you’re like many people, you’ve heard of a document called a Power of Attorney. You may even have authority for an aging relative under a Power of Attorney. Most people don’t realize that the authority granted under a Power of Attorney ends as soon as the person granting the power dies. While you may be able to access your loved one’s checking account to pay bills while they’re alive, that ends immediately at death if your access was under a Power of Attorney. You must then get separate authority—from a court if assets are not held in a trust—to handle the remaining assets after death.
Your incapacity planning and post-death planning must work together to ensure a smooth transition and ease for your loved ones. This brings us to the Leno case.
So, What Happened In the Leno Family? (And What It Means for You)
Mavis Leno, Jay’s wife of more than 40 years, is battling dementia and has reached the point where she can no longer handle her financial affairs. So, Jay had to go to court (essentially filing a lawsuit against his own wife) to manage her finances. After a few months, the court ruled and gave Jay the authority he requested.
Several key takeaways exist from this simple case:
- Even though they were married, Jay did not have automatic authority to manage Mavis’s finances. Marital status is irrelevant to asset ownership. Without advance planning, your spouse could need to go to court and sue your “estate” to gain control of your assets.
- Jay had to file a lawsuit against his wife to manage her finances. This process can take months and cost money. During the wait, bills may go unpaid or be paid out of personal funds, creating financial strain.
- The court process can lead to conflict, especially in blended families. Fortunately, Jay and Mavis didn’t face challenges, but many others do, which prolongs the court process and increases costs.
- Personal and family information becomes public in court. Jay and Mavis’s private details are accessible not because Jay is famous but because they went through the court system. This public access can attract scammers and create privacy issues.
A Life & Legacy Plan Keeps Your Affairs Private and Your Family Out of Court and Conflict
A Life & Legacy Plan solves the problems that left Jay Leno having to sue his wife’s estate to access her accounts. With a Life & Legacy Plan in place, you would have a seamless transition from capacity to incapacity and then to death. No time delays, and assets would be immediately available when needed. A Life & Legacy Plan also keeps you and your loved ones out of court and conflict, saving time and money and keeping your affairs private.
When you work with me to create your Life & Legacy Plan, we’ll ensure your plan stays updated throughout your lifetime. This is critically important because if your estate plan doesn’t reflect your current life circumstances at the time you need it, then it simply won’t work, leading to court involvement, just like the Leno family. Many attorneys do not ensure your plan stays updated, but I’ve seen too many plans fail because of this. Together, we’ll review your plan at least every three years and make updates as necessary.
We’re Here for You Throughout All Of Life’s Changes
Incapacity planning is more crucial than ever, especially with dementia cases on the rise. According to Alzheimer’s Disease International, over 55 million people worldwide currently have dementia, expected to increase to 78 million by 2030. Whether you’re diagnosed with dementia, another severe illness, or suffer a terrible accident resulting in incapacity, a Life & Legacy Plan ensures you’re prepared, no matter what happens.
As a Personal Family Lawyer Firm, we help you create a Life & Legacy Plan so that your loved ones stay out of court and conflict and have a plan that works when you (and they) need it. Once you’ve created your plan, you can rest easy knowing your wishes will be honored, your loved ones cared for, and your personal information kept private.
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This article is a service of The Life and Legacy Law Center, a Personal Family Lawyer® Firm. We don’t just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love. That’s why we offer a Life & Legacy Planning® Session, during which you will get more financially organized than you’ve ever been before and make all the best choices for the people you love. You can begin by calling our office today to schedule a Life & Legacy Planning Session.
The content is sourced from Personal Family Lawyer® for use by Personal Family Lawyer firms, a source believed to be providing accurate information. This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal, or investment advice. If you are seeking legal advice specific to your needs, such advice services must be obtained on your own separate from this educational material.