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3 reasons to add powers of attorney to an estate plan

On Behalf of | Jun 17, 2024 | Estate Planning

Estate planning is often as much about personal protection as it is about the creation of a legacy. People can draft documents that take effect while they are alive, not just documents that manage probate matters after their death.

Powers of attorney are among the most popular documents that people add to their estate plans for their own protection. Powers of attorney grant certain types of authority to other individuals if the principal drafting the documents has some kind of incapacitating medical issue.

People decide to expand their estate plans for many different reasons. For example, the following are some of the most common reasons that people decide to add powers of attorney to an estate plan.

The need for financial support

Individuals in a variety of situations may be financially vulnerable in an emergency. Those who rent their homes or who have mortgage payments could be at risk of eviction or foreclosure after a long-term incapacitation prevents them from making payments. People who run businesses and professional practices may need to have someone take over their work to ensure the company doesn’t suffer damages because of their personal medical challenges.

Anyone who worries that a period of incapacitation could put their assets or credit score at risk may want to draft financial powers of attorney so that someone else can access their resources and manage their financial obligations in an emergency.

Concerns about standard medical practices

Healthcare professionals generally follow certain standards established by employers and professional organizations. They may utilize interventions that people find questionable in some cases. Those with strong feelings about the type or amount of medical care they receive may want to empower someone to speak on their behalf if they become incapacitated. Powers of attorney can help ensure that someone receives appropriate medical support when they cannot communicate their preferences.

Worries about permanent incapacitation

Someone with a severe brain injury from a car crash may never live independently again. Other people may develop debilitating medical issues as they age, like Alzheimer’s disease. Anyone could end up subject to the control of an outside party under guardianship laws unless they have durable powers of attorney on record. Durable documents allow someone to name an individual to manage their affairs even if they become permanently incapacitated. Powers of attorney also serve to take pressure off of someone’s closest family members by giving someone else control in a difficult scenario.

At the end of the day, choosing to add a variety of documents to an estate plan can protect someone from an assortment of different challenging situations.