I get it. Personal finance is a field full of topics many of us would rather not think about. And of all the things to blissfully ignore, your own incapacity might top the list.

But wait you say, I thought we were going to talk about Estate Planning here... what's all this talk about incapacity?

Well, right. In my world of financial planning, we traditionally call this area estate planning. But I've found that most people see that title and think, "Right, well, I'm not a millionaire so that doesn't apply to me. Moving on to more important things like the latest episode of the Great British Bake Off."

So I call this Incapacity AND Estate planning in an effort to highlight that we talk about the important topic of incapacity. And incapacity is (in my view) is important to plan for regardless of how wealthy you are.

But if I'm being honest (and I do try to be honest), Estate Planning isn't a very descriptive term. What does estate even mean? Well... how to put this delicately. An estate is the legal entity that (temporarily) owns your assets after you die. So really we're talking about planning for your death.

Sorta rolls right of the tongue, that. Our culture doesn't do a great job of looking at death, so I'm gonna just stick to calling it estate planning. Close enough for government work. Either way, this is a difficult topic for many of us to think about. And one that is, quite frankly, often easier to avoid. Until of course it isn't.

But we're all here now. So let's talk about incapacity and death for a bit. Because like it or not, they are both important situations to think through when it comes to preparing for the future.

There are three different categories here: 

1. Planning for incapacity in your personal life;
2. Planning for incapacity in your professional life; and 
3. Planning for your estate (ahem, planning for your death).

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In each of the three sub-domains of Incapacity & Estate planning, important legal documents often can (or usually do) play a role. Which naturally begs the question - how should you go about getting that done.

You can always just sit down and draft your own legal document. You're an adult, and you're free to enter into any contract you want (including one you invent yourself). That said, I strongly encourage you to consider seeking professional assistance. And that assistance can come in two forms: legal services or engaging an attorney.

Legal Services

What I'm talking about here are online services like LegalZoom or Rocket Lawyer. And there are others as well. The services typically walk you through a questionnaire and then generate a legal document in response. You can then sign that document and away you go.

These services are great for the right circumstances. Because you don't typically actually speak with an actual live attorney, the documents may not end up being exactly perfect for you. But if you're drafting pretty simple documents, that's probably ok.

For example, I used LegalZoom to draft my LLC documents. My LLC didn't require much specialization and if something is wrong in those documents, honestly probably won't be the end of the world. Great time to use an online legal service.

Would I use LegalZoom or the like for my estate planning documents? I mean... probably not. If you're just setting up some powers of attorney (see below for details on what that is) and you're certain the boilerplate form for your state will be good enough, then an online legal service might be good enough. Still makes me a bit uncomfortable, tbh. And if you're drafting wills & trusts then I think working with an actual live human being (who is also a properly licensed attorney) is almost certainly the way to go.

Work with an Attorney

For incapacity and estate purposes, I typically think you should work with a real live qualified estate planning attorney. A standard estate planning package will put all the documents I discuss in this section in place. Such a package usually can be purchased for between $1,000 and $3,000. And if you don't need will and trust documents, you can probably find a good attorney do do incapacity planning documents for under $1,000. An investment? Sure. But I believe the peace of mind is worth it.

Hire a Specialized ESTATE Attorney

I also highly recommend that the actual live human being you work with be a specialized estate planning attorney well versed in the laws of the state you live in. Laws related to estate planning are complex and change frequently. Find a lawyer who eats, sleeps and breaths this stuff. Not one who occasionally dabbles in it.

I used Sonya Tatiyants and her all-woman team (pretty cool) at Lynk Law in Glendale, California to put my own estate plan in place. They were fantastic. They also have experience working with therapists and integrating a professional will into the overall estate plan. If you're in California, consider checking Lynk out.

To find other qualified attorneys focused on estate planning issues, a great place to start your search is the American College of Trust and Estate Counsel (ACTEC). I'd suggest you still do your due diligence on any attorney you find in this directory.

Personal Incapacity planning is put in place to handle your personal affairs in the event you suffer some form of incapacitation, such as illness or hospitalization. 

Because there's a fair bit to cover here, I've placed these resources on a dedicated Personal Incapacity Planning Page.

Ok, enough of incapacity planning, on to estate planning. 

And since we're friends, let's just call this what it is: death planning. Specifically, I'm going to review how to ensure that after your death, any remaining assets you own are transferred efficiently and effectively. 

To stay better organized (and I do love some good organization!), I've put this information on its very own: Estate Planning Page.