A durable power of attorney is a legal document and important estate planning tool. It provides you with an opportunity to appoint another person to handle your affairs and to act on your behalf. When you have a durable power of attorney, this means that the person can handle your affairs even in the case of incapacitation. Handling the estate and affairs of those who are incapacitated, however, is not the only thing that power of attorneys are good for, however.
Power of Attorney Provides a Safety Net
You never know what may happen. A lot of people don’t think about whether they will need a power of attorney in the future. After all, no one wants to think about a time where they may not have the capacity to make decisions for themselves. Even if you do not have any illness or condition that would make it necessary, it always helps to have a power of attorney set up as a safety net.
Power of Attorney Honors Your Wishes
If you have a durable power of attorney, then you can appoint someone who will follow through with your wishes. If you are unable to make decisions for yourself regarding your health and finances, then you do not want someone who is court appointed to handle it for you. You want someone who knows your wishes and that you can trust to honor them. Keep in mind that in this case, a will and POA are not the same thing. Wills distribute property after death and the POAs will support the financial or health related decisions that you cannot make for yourself.
Power of Attorney Handles Financial Affairs
A conventional power of attorney is in effect until you are mentally unable to make decisions for yourself. This a specific POA. For instance, if you are working with a money manager, this is how you can give him or her the authority to handle your investments and to buy and sell on your behalf. You can provide a limited power of attorney or a broader, general power of attorney to handle your financial affairs.
To have a durable power of attorney is extremely important. It’s one of the most beneficial financial planning and estate planning tools. If you are ever incapacitated, a power of attorney is how you can assign someone to handle your medical and financial affairs. If you want someone who is going to honor your wishes, it always helps to have someone of your choice. Consult with a Folsom estate planning lawyer today for more information.
Thanks to Yee Law Group for their insight into estate planning and durable power of attorney.