When many people think about estate planning, they often envision wills, trusts and complex financial arrangements meant for the elderly or the wealthy. However, one of the most important documents you should have in place -regardless of your age or financial situation- is a power of attorney (POA). This legal document can provide significant benefits, protection and peace of mind.
What is a power of attorney?
Let’s begin with explaining what a power of attorney is and why it is so important for everyone to have one. This is a document that grants someone else (in legal terms, the “agent”) the authority to act on your behalf in medical or financial matters. There are different types of powers of attorney:
- General power of attorney
- Limited power of attorney
- Durable power of attorney
- Medical power of attorney
Why you should have a power of attorney– at any age.
All of our clients are advised to work with our office so they have a power of attorney in place. The reasons for this are many, including:
- Unforeseen circumstances that leave you incapacitated, in need of someone to make decisions for you.
- If you find yourself traveling, busy with work or dealing with a person crisis, your power of attorney can step in to take care of your financial matters.
- In the event of a medical emergency or illness, having a medical power of attorney allows you to choose someone you trust to make healthcare decisions aligned with your values and preferences.
- Without a power of attorney, your family members could easily disagree on what to do if you are unable to make decisions for yourself. A power of attorney shuts that down– because you already have an agent.
A power of attorney can be tailored to fit your specific needs and preferences. You are in control and can specify what powers you want to grant your agent (limited power of attorney), and you can revoke or change it at any time.
Regardless of your age and financial status, having a power of attorney is a smart and responsible decision that will save you and your family a lot of grief and allow you to have control over your affairs, as well as peace of mind.