Some estate plans are quite basic. Individuals draft wills to ensure their minor children have a guardian or that specific people inherit their property. Other estate plans may include a broad assortment of different documents, including documents that take effect while they are still alive.
Powers of attorney are some of the most useful and popular estate planning tools. Adults in a variety of different scenarios may decide that powers of attorney are worthwhile additions to a basic estate plan. The following are some of the most common reasons that people authorize agents to act on their behalf in an emergency.
The protection of valuable assets
People only have to miss a handful of mortgage payments for their homes to be at risk of foreclosure. Someone left in a coma or on life support for months after a car crash could be at risk of waking up to extreme financial hardship. Powers of attorney are useful for those who have assets in their name that might be at risk if they become incapable of sending payments for several months. Financial powers of attorney allow a trusted agent to fulfill financial responsibilities and manage valuable assets, possibly including a business or a professional practice.
The need for specific medical support
Medical powers of attorney are popular estate plan inclusions. For some people, advanced age or major medical challenges might inspire them to draft powers of attorney. They can provide clear instructions about matters such as resuscitation and pain management so that someone they trust can advocate for them during a medical emergency. If an individual’s medical preferences are different from the standard approach employed by modern doctors, powers of attorney help ensure that others can comply with those wishes.
The desire to support close loved ones
Another common reason that people establish powers of attorney is to take the pressure off of the people closest to them in an emergency scenario. Typically, spouses might be the only people with the legal authority to handle someone’s finances or their health care needs in an emergency. In a situation that has left someone incapacitated, their spouse might be consumed by grief or may struggle with untenable levels of stress.
Powers of attorney allow someone to choose an agent or attorney-in-fact other than their spouse to take the pressure off of their closest loved one in an already difficult situation. They also have protection in a tragic situation where their spouse was present with them at the time of the incident that left them incapacitated and may have similar or worse injuries.
Powers of attorney are valuable additions to many modern estate plans. Realizing how vulnerable people can be in an emergency could inspire adults to supplement a will with additional estate planning documents.