The Growing Importance of Incapacity Planning

As our population continues to live longer, with life expectancies now stretching well into the 80s and beyond, the conversation around aging is increasingly turning to more than just retirement savings and long-term care. One of the most urgent and overlooked aspects of later life is incapacity planning—the process of legally preparing for the possibility that you might one day be unable to make decisions for yourself due to illness, injury, or cognitive decline.

This is not just a matter for the elderly. Accidents, strokes, or early-onset dementia can affect adults at any age. But with dementia diagnoses projected to impact nearly 1 million Canadians and approximately 8.4 million Americans  by 2030, the time to prepare is now.

Why Incapacity Planning Matters More Than Ever

When someone loses the ability to manage their personal, legal, or financial affairs, it can throw a family into chaos. Without the proper documents in place, loved ones may face lengthy court processes to establish guardianship or trusteeship—often during an already stressful and emotional time.

Unfortunately, many people do not have powers of attorney or personal directives in place, leaving their families vulnerable to legal confusion, emotional conflict, and financial mismanagement.

💡“If you don’t choose who will speak for you, the court may have to,” says Nancy Boisvert, a Certified Executor Advisor and founder of NEXsteps. “And that decision may not align with your wishes or your family dynamics.”

A Real-Life Cautionary Tale

Consider the case of Joan, a retired teacher in her early 70s who was widowed and living independently in Alberta. Her two adult children lived in different provinces. Joan had never completed an Enduring Power of Attorney or Personal Directive, believing she was still “too young to worry about that.”

When Joan was diagnosed with early-stage Alzheimer’s, her condition rapidly progressed. Within a year, she was unable to manage her finances or communicate complex decisions. Her children disagreed about the best course of care and how to manage her home and investments. With no legal decision-makers appointed, they had to apply for guardianship and trusteeship through the courts—a process that took several months, cost thousands of dollars in legal fees, and strained their relationship permanently.

By the time decisions could be made, critical financial deadlines had passed, and Joan’s home had deteriorated in value. Worse, her care was delayed because no one had clear authority to act on her behalf.

Unfortunately, Joan’s situation is not unique.

What Does Incapacity Planning Involve?

Incapacity planning involves creating legal documents that authorize trusted individuals to make decisions on your behalf if you’re no longer able to do so:

Enduring Power of Attorney (POA):

This allows a person you trust (your “attorney”) to manage your financial and legal affairs. It remains valid even if you become mentally incapable.

Personal Directive (or Advance Healthcare Directive):

This document appoints someone to make personal and medical decisions, such as where you will live, the kind of care you receive, and life-sustaining treatment preferences.

Wills and Mental Capacity:

A will can only be created or amended by someone who has mental capacity. Once a person loses that capacity—due to dementia, injury, or illness—they can no longer legally draft or revise their will. This makes it crucial to have a valid, up-to-date will in place before any cognitive decline occurs. Without one, your estate may be distributed according to provincial intestacy laws, which may not reflect your wishes.

Risks of Not Having a Plan

Without these tools in place:

• Families must go to court to gain authority to act, causing delays and legal costs.
• Disputes can arise between family members or with healthcare providers.
• There’s a higher risk of financial abuse or misuse of funds, especially when no formal power of attorney is in place.
• Personal wishes around medical care, housing, or end-of-life choices may not be followed.

Proactive Tips for Incapacity Planning

Start early – Don’t wait for a diagnosis or health scare. Planning while you’re healthy gives you more control and avoids rushed decisions.

Choose your agents carefully – Select people who are trustworthy, available, and capable of acting in your best interests. Consider naming backups in case your original choices are unable to act.

Communicate your wishes – Talk to your chosen agents and your family about your values, healthcare preferences, and expectations. The documents are important—but so is the conversation.

Review and update regularly – Life changes. So should your documents. Review your plan every 3-5 years or after major life events (divorce, death, relocation).

Consult professionals – A lawyer can help you create documents that meet your jurisdiction’s legal requirements. A Certified Executor Advisor can help you think through practical concerns and family dynamics.

Store documents accessibly – Make sure your attorney, executor and healthcare agent know where to find your documents in an emergency. Consider digital backups or services that provide secure access. *Original wills are required, so be sure to keep that document secure.

Start the Conversation Now

As our population ages, the need for incapacity planning is no longer optional—it’s essential. It’s not just about protecting assets; it’s about preserving dignity, reducing family stress, and ensuring your wishes are known and respected when you can no longer speak for yourself.

At NEXsteps, we work with individuals and families to prepare for the road ahead—not just with wills and estate planning, but with personalized guidance around incapacity, aging, and decision-making. Our mission is to ensure you’re ready for whatever the future holds.

Need help getting started with your incapacity planning?

Reach out or book your consultation for compassionate, knowledgeable support. As a Certified Executor Advisor and legacy planning expert, I can guide you through the process and connect you with trusted legal professionals if needed.

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