When most people think about estate planning, they usually focus on what will happen when they die. They typically do not consider what will happen if they are alive but unable to manage their own affairs (if they are incapacitated). Late-night talk show host Jay Leno had to seek court involvement to handle his and his wife’s estate planning needs due to his wife’s incapacity (she was diagnosed with dementia).
What Is a Conservator? A conservator is a court-appointed person who manages the financial affairs of a person who is unable to manage their affairs themselves.
Jay Leno’s Petition to the Court. In January 2024, Jay Leno petitioned the court to appoint him as his wife’s conservator. Her dementia made it impossible for her to manage her financial affairs. It took several months for Mr. Leno to be appointed by the court, and court activity will likely continue until Mrs. Leno’s death. Had they prepared an estate plan ahead of time, much of this time and expense would likely have been avoided.
Important Takeaways. This experience is not limited only to the rich and famous; you could find yourself in the same situation if you do not preplan.
- Spouses cannot automatically step in for each other in times of incapacity or death. Many people are under the impression that because they are married, their spouse can automatically step in for them upon their incapacity or death without any estate planning tools in place or the need for court involvement. This is simply not the case.
- Well-drafted estate planning documents could have prevented this. If Mrs. Leno had signed a properly drafted financial power of attorney granting her husband the authority to act on her behalf, it is quite likely that Mr. Leno would not have had to become her conservator.
- Having a plan in place is better than relying on a state’s default rules. While the Lenos’ situation seems to have been resolved positively, conflict can arise when relying on a state’s rules. Multiple family members may want to manage their loved one’s affairs, and any disagreements may need to be resolved by a judge. This infighting will become a matter of public record and can also delay the entire process. Also, if you do not have a close relationship with your family, relying on the state’s laws relating to priority of appointment may give an estranged family member the authority to make decisions on your behalf, even if that would not be the person you would have chosen. And for those who have no family, it’s anyone’s guess who will step forward to “take care” of their finances. It is better to proactively create an estate plan so that you can be in control of appointing the person you want to act on your behalf.
We can help you and your loved ones regardless of where you find yourself in the estate planning process. Whether you are looking to proactively plan to ensure that your wishes are carried out during all phases of your life, or if you need assistance with a loved one who can no longer manage their own affairs, give us a call.