Estate planning requires you to consider the future and define your wishes. Many people include a document designating powers of attorney in their estate plans that name a trusted person to represent their interests in cases of incapacity.
If you are ill, disabled or otherwise unable to participate in important decisions regarding finances and medical care, the agent in your POA document can manage those issues on your behalf.
Power of attorney in estate planning
Estate planning involves the creation of a will and other documents to protect your assets and express your end-of-life wishes. In addition, you can include power of attorney documentation in your plan to promote your interests and make crucial decisions if you cannot do so. POA documents are often relevant in cases of serious injury or illness, but some people also use them to manage their affairs while traveling abroad.
Financial and healthcare power of attorney
You can select a single individual to act as your proxy or designate certain powers to more than one person. It is common for people making estate plans to differentiate between financial and healthcare powers of attorney. Your financial POA document can name an agent to manage your finances, pay bills and oversee investments. A healthcare POA enables someone you trust to make decisions regarding your medical treatment. When drafting your POA document, it is essential to detail your preferences and specify which duties each agent should administer.
By adding a power of attorney document to your estate plan, you can gain peace of mind and ensure your loved ones are aware of your wishes in case of incapacity.