Creating an estate plan involves diving into one’s future goals and priorities. More often than not, individuals choose estate planning tools that will benefit them and their loved ones the most. If you are considering including a power of attorney in your estate plan, read through its benefits and see if it aligns with your goals.
Freedom to choose your trusted person
With a power of attorney, you can appoint a person whom you trust will make appropriate decisions for you in the event you can’t and will dutifully perform their obligations and responsibilities as your designated agent. Without this document, the court may assign a person who might not have your complete trust and you will not be able to do anything about it.
Handling financial affairs when you can’t
Even if you are unable to manage your financial affairs, regular transactions will still continue as normal. This means bills still have to be paid, accounts have to be maintained and business affairs must be taken care of. With a power of attorney, you can have an agent handle these affairs for you. This saves you from facing nonpayment penalties and business complications.
Making medical decisions on your behalf
One variety of this estate plan tool is a medical power of attorney. This allows your appointed agent to make medical decisions for you if you suffer disability or incapacity. This can be especially helpful when family members cannot agree on medical decisions regarding your health.
If one of your concerns is addressing the possibility of future incapacity or disability affecting your financial, medical or other important life aspects, then a power of attorney will serve useful to your estate plan.