There is an assortment of documents that people can add to their estate plans. Wills allow people to choose beneficiaries or appoint guardians for their minor children. Trusts can give people protection later in life and provide them with more control over their legacy.
Many people also need to consider their support needs as they age or if they experience some kind of medical emergency. People ranging from those with debilitating illnesses to college freshmen may decide to add powers of attorney to their estate plans.
Powers of attorney are legal documents appointing a specific person to act as agent or attorney-in-fact if the principal who drafts documents becomes incapacitated. What are some of the benefits of establishing powers of attorney before a personal emergency?
1. Improved peace of mind
One of the biggest benefits of drafting powers of attorney is the knowledge that a trustworthy person is able to step up in an emergency. Without documents, other people may need to go to court to make decisions or handle financial matters.
The principal establishing the documents can trust that someone they know has the necessary authority to handle their finances or make medical choices on their behalf. People may feel more confident when going about their day-to-day lives if they know they have protection even if they have some kind of medical emergency.
2. The protection of personal resources
Those who have incapacitating emergencies are financially vulnerable. They can fall behind on rent or mortgage payments. Their assets could be vulnerable to repossession, foreclosure and other collection attempts. They might overcome their medical challenges, only to face severe financial hardship afterward.
Powers of attorney help protect personal assets. They can also help ensure that there is a competent person to manage a business or professional practice on behalf of the owner if anything happens to them. Anyone with business responsibilities or valuable assets could benefit from drafting powers of attorney to ensure the protection of those resources.
3. Reduced risk of guardianship
If people do not plan in advance and become permanently incapacitated, outside parties may try to take legal action. An estranged family member or a professional caregiver could go to court seeking guardianship or conservatorship. That individual could then have direct control over a vulnerable person’s property and medical decisions. By drafting durable powers of attorney, people protect themselves from being subject to the control of whoever takes the issue to court. They have the option of selecting someone they trust to fulfill that important role.
Drafting powers of attorney can be helpful for anyone who is old enough to have their own assets, especially those without a spouse to act on their behalf. People who create robust estate plans can have better protection and can enjoy a more robust peace of mind.