When organizing a plan for your estate, you need to appoint a trusted person to act in a legal capacity if you become temporarily incapacitated.
The person you appoint in your power of attorney handles your property to maintain your finances when you cannot do so.
What is a power of attorney?
A power of attorney is an estate planning tool that specifies a person to act for you if necessary. The individual can make decisions that may involve economic arrangements, medical concerns, legal matters and more.
What are the different power of attorney types?
The document you choose varies depending on your unique needs and may include:
- General: The appointed person handles medical or legal issues.
- Medical: The selected agent makes healthcare decisions if you cannot do so.
- Durable: The named party remains in control of particular choices
- Limited: The individual has limited authority to perform specific tasks based on your wishes.
- Springing: This document only takes effect after a named event occurs, such as a sudden onset of illness.
What are the benefits of a power of attorney?
Adding a power of attorney tool to your estate plan protects your family if you cannot make essential determinations. You gain many benefits, such as:
- The document is confidential
- You retain the right to revoke it without court action
- Legal fees to set it up are more affordable than establishing an estate conservatorship
- There is no specified end date to a durable power of attorney
Appointing a trusted person to make vital decisions if you are unable helps ensure financial and medical security for you and your family members.