The future is unpredictable. People never know when they might get hurt in a car crash or random criminal activity. They could have a major medical event, like a heart attack or a stroke. There are countless different scenarios that can leave people seriously ill or injured.
In some cases, they may become incapacitated. They remain unconscious for days, cannot communicate with others or experience declines in cognitive function that impair their ability to manage their own affairs.
If people have not planned in advance for that kind of emergency scenario, they could potentially experience financial hardship that continues to impact them even after they recover from their medical conditions.
Incapacitation interferes with basic responsibilities
Adults have a variety of different financial responsibilities. They have to pay their rent or their mortgage every month. They may need to make student loan and credit card payments. Some people may have to oversee and manage their financial investments or run a small business.
Patients who are on life support in the hospital or incapable of communicating with others typically cannot manage their own finances. They could be at risk of eviction, foreclosure or vehicle repossession. Their credit scores could decline because they miss payments on their financial obligations. Their businesses or professional practices ma suffer because of their health challenges.
Thankfully, it is possible to plan in advance for these kinds of emergencies. The creation of financial powers of attorney can allow people to protect their resources and fulfill their financial obligations even in an emergency scenario.
The agent or attorney-in-fact granted financial authority can manage a business, pay bills and otherwise oversee the financial needs of an incapacitated individual. Financial powers of attorney can include specific instructions and restrictions on the authority of the agent to protect the incapacitated individual. The document also loses its authority when the person he drafts the document dies or recovers from their medical emergency.
People who plan ahead can benefit from support and protection even in unusual situations. Drafting financial powers of attorney can help people ensure adequate support if they experience a major personal emergency.