By: Martin M. Shenkman, CPA, MBA, JD
A person who is disabled and unable to act. Many legal arrangements include provisions addressing incapacity. A revocable living trust may trigger a successor trustee if the grantor (the person who set up the trust) is incapacitated; a durable power of attorney may spring into effect if the grantor (person signing the power) is incapacitated; an employment agreement may reduce and then eliminate your salary if you are incapacitated, and at some point terminate your employment. Definitions of what constitutes incapacity, whether a partial incapacity will be addressed and if so how, the legal requirements of maintaining and protecting confidential medical information (HIPAA) and how that impacts determining incapacity, etc. should all be considered.
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