A Power Of Attorney Belongs In Every Estate Plan
Planning for your future means more than imagining yourself enjoying retirement. It is essential to plan for the unpredictable and ensure that you and your family are protected. Taneff Law can help you make sure steps are in place for your health and the well-being of your estate will set you and your family up for success. We can help ensure that someone you trust can step in and manage your assets if you are unable to do so. Having a power of attorney, or a POA, is an important part of the estate planning process and it can help ensure that you receive the care you deserve if there is ever an emergency. Below, we have broken down the importance of having this legal authorization document and why you should consider adding it to your estate planning to set yourself up for the future.
What Is A POA?
A power of attorney is a legal tool that you can use to appoint someone to act on your behalf. This is typically used when a person is incapacitated or is unable to care for themselves. This document can be used in many ways, but it is designed so you can have the comfort knowing that your affairs and property are being managed by someone you trust when you are unable to for various reasons. A power of attorney is a useful tool when you are planning your estate and it can ensure that your estate is managed smoothly without any need for court intervention. Below, we have broken down what you need to know so you can get started planning your power of attorney and set you and your family up for success.
What Authority Does A POA Give Someone?
The principal, the person granting the power of attorney, can appoint anyone in their life to be their agent, or attorney-in-fact. With a POA, you can grant your attorney-in-fact many different abilities over your estate. The abilities you grant this person are entirely up to you. Your attorney-in-fact can help manage your estate by paying bills, filing taxes, and managing investments. You can also grant this person the capability to make medical and treatment decisions for you if you are unable to do so. You are able to make this person’s role in your estate planning as broad or specific as you would like. It is important to note that your attorney-in-fact can work alongside the other legal estate planning essentials you have put in place. If you have any trusts in place, your attorney-in-fact can work alongside your trustee to oversee assets inside the trust if needed. POA’s do not handle personal and financial matters that are within trusts.
When Does A POA Take Effect?
When a POA takes effect is entirely up to you. In your estate plan, you can determine when and under what circumstances your power of attorney will be executed. You can have your attorney-in-fact act on your behalf as soon as the papers are signed if that is what you wish. This is often used when you want help managing your finances, even if you are still capable. You can also specify that your POA will only become active if you are incapacitated. This event requires a doctor’s certification before the attorney-in-fact could start acting upon the principal’s requests.
What Is A Durable POA?
When planning your estate, it is important to consider whether you need a durable power of attorney or a standard one. Choosing a durable document will give your attorney-in-fact authority to make decisions even in the event of incapacitation. It can also ensure that your assets can be tended to immediately without needing to wait for court approval. A standard ends the moment you lose your mental capacity.
POA And Your Healthcare
You can appoint your attorney-in-fact to have the ability to make medical decisions on your behalf when you cannot speak for yourself. You can be broad or specific and is based on the wishes that you want for yourself. You can give this person authority to choose what doctors or hospitals you use, the administration of your medical care or surgeries you will or will not receive, and even make a decision about life support. This document is usually paired with your living will. In your will, you can state your treatment preferences and any details of end-of-life care that you want to proceed with. Your will is a tool that will help your attorney-in-fact make certain decisions when they are needed.
What Happens If You Don’t Have A POA?
If you do not have a designated agent in place, you can make it very complicated for your loved ones to manage you and your affairs if there is an emergency and you are unable to make decisions for yourself. This could mean that critical decisions may be delayed if you need to wait for the courts to appoint a guardian. This process can take weeks or months before someone can make a decision on your behalf. In addition to time, this process can also be very expensive when you pay court costs and attorney fees. Once the court appoints someone as your guardian, they may select a person that you wouldn’t have trusted initially or possibly a professional guardian who doesn’t know you personally. This can add extra stress to your family and may cause disagreements between them if they disagree on what care you should or should not receive.
Protect Yourself With This Essential Estate Planning Tool
If you are ready to start estate planning or are looking to add a power of attorney to an existing estate plan, Taneff Law can help ensure that you and your assets are protected. We have been in the estate planning business for over 36 years and we help families protect themselves. We can help you create a plan for your future so you are prepared if a crisis strikes. Give us a call today to set up a meeting with one of our attorneys. They are ready to help you take the next step at protecting your future.