There are several different documents that people may integrate into an estate plan for their own protection. Wills and other testamentary instruments protect beneficiaries and loved ones after an individual passes. Living documents, including powers of attorney and advance directives, can protect the person drafting the paperwork if they experience a major emergency.
As is true for many estate planning documents, powers of attorney could be useful for people in almost any situation. Still, there are specific scenarios in which they are particularly useful. Who has more need than others to consider adding powers of attorney to their estate plans?
Business owners
When someone runs a sole proprietorship or is the only member of a limited liability company (LLC), their company could be at risk when they can’t run the business. If they have a medical emergency or end up hurt in a car crash, there is no one to carry out basic business functions. Drafting powers of attorney can be critical for the preservation of a business should the owner and operator of the business become incapable of fulfilling their typical functions.
Divorced or unmarried individuals
Many legal professionals recommend that young adults starting their careers or moving away to college draft powers of attorney. After all, their parents no longer have access to their finances or medical records without power of attorney authorization. People who never marry may want to establish powers of attorney. People who get married but later divorce may also require powers of attorney, as they do not have spouses to manage their affairs in an emergency.
People facing medical issues
Individuals with chronic or progressive medical conditions may be more aware of their vulnerability than many others. They may recognize that they could require the support of others if an emergency arises. Drafting powers of attorney along with advance directives is a common practice as people prepare to undergo treatment for cancer and other very significant medical issues.
Drafting or updating powers of attorney can be beneficial for people worried about their medical support or resources. People who empower trusted individuals ahead of time can feel confident about having access to support and preserving their resources in the event of a major personal emergency.