As you create your estate plan, you must take into consideration what could go wrong in the future. While doing so, you’ll come to realize that a variety of emergency documents can put your mind at ease. With these in place, both you and your loved ones will have peace of mind, as well as the direction needed to make informed and confident decisions.
What is a Power of Attorney?
A power of attorney gives another person the ability to make decisions on your behalf if you become incapacitated and are unable to manage your own affairs.
For example, a financial power of attorney is associated with your financial circumstances. You can name an agent to manage tasks such as:
- Paying your bills, taxes, and insurance premiums
- Paying for medical care
- Managing real estate
- Investing
- Accessing financial accounts, such as retirement and bank accounts
- Transferring and/or selling assets
- Collecting paychecks and/or retirement benefits
- Helping to operate your business
- Hiring professionals, such as a tax planner and attorney
There are four basic types of power of attorney:
- General power of attorney
- Durable power of attorney
- Limited power of attorney
- Springing power of attorney
What About a Living Will?
A living will is also one of the more important emergency documents you can create. This allows you to express the type of end-of-life treatment you want to receive. It kicks in if you’re unable to communicate your decisions.
As long as your living will meets all legal requirements, the instructions you provide are legally valid and must be adhered to. For example, you can issue a do not resuscitate order.
Don’t sell yourself short when creating an estate plan. It’s a good idea to include powers of attorney, healthcare, and other emergency documents.
If you have questions about these documents, as well as what’s right for you and your family, contact us to schedule a consultation.
