Many adults think about the disposition of assets when they’re creating an estate plan. If you’re in the midst of getting this important set of documents together, be sure that you don’t forget to plan for what will happen if you become incapacitated.
One thing that’s critically important is making sure that your expenses are taken care of if you aren’t in the physical or mental state to make financial decisions for yourself. At this point, you should have someone who can legally access your financial accounts so they can take care of things.
Key responsibilities and considerations
The individual you decide to have take care of your financial matters should have the power of attorney for finances. This lets them pay your bills, manage your investments, oversee real estate and take care of bank transactions. The exact powers the person has are set by the terms of the document, which can be tailored to fit your needs.
It is crucial to choose a trustworthy individual because they will have significant control over financial assets. To help safeguard against misuse, the document can include oversight options, such as requiring reports to a third party or setting limits on financial transactions.
It’s critical that this document is set up so it accurately reflects your wishes. This is only one part of the estate plan, so be sure that you have everything written out in a way that’s legally enforceable and as easy as possible for your loved ones to follow.