When drafting an estate plan, one key element to consider is a power of attorney. This is a document that you use to select an agent. If you become incapacitated, the agent can then act on your behalf.
Incapacitation can happen for a number of different reasons. It could come after a sudden medical event, like a heart attack or a stroke. It could also happen due to mental decline, Alzheimer’s, dementia and other disorders. It is important to plan for the future.
2 main types
You can use a power of attorney in a few different ways, but there are two main areas people will consider. The first is medical. If you are incapacitated, you still need someone to make medical decisions on your behalf, such as deciding if you will be kept on life support or authorizing other types of treatment. A medical power of attorney allows you to pick an agent who will do so when you cannot do it on your own.
The second type of power of attorney is financial. This gives someone the legal ability to do things like sell property, access bank accounts, pay taxes, pay credit card bills and handle similar tasks. They are not so much making important decisions for you as they are taking important steps that you may not be able to do on your own. Someone still has to handle your affairs, and your agent is the person in charge of doing so.
Creating your estate plan
Adding a power of attorney to your estate plan can be very beneficial. Take the time to carefully look into all of the necessary legal steps.