One of the most overlooked parts of estate planning is a document that actually helps you
when you’re alive: the Power of Attorney. Most people just consider wills and trusts when they
meet with a lawyer for the first time, so they are often surprised to hear about the importance
of this document.
Let’s look at how this valuable legal tool can protect you at your most vulnerable moments in
life.
First, what is the Power of Attorney?
This document allows you to name someone to make important decisions for you. There are
two kinds of powers of attorney: financial and medical.
The financial power of attorney allows someone, often called your “agent,” to handle legal or
money matters for you. You can decide what type of powers to give to your agent. This could
include control of your house or other real estate, bank accounts, taxes, or business
operations if you are a business owner.
Your medical power of attorney names someone to make health care decisions for you. This
document allows that individual – sometimes called your “patient advocate” – to have control
over your medical decisions or treatment by following the directions you laid out for them.
Why would I need a Power of Attorney?
At some point if your future, you may be unable to communicate your own decisions due to
long-term illness or a sudden injury. You might even anticipate this due to old age or a family
history of dementia or other capacity-related diseases. The power of attorney allows you to
remain in control of your life by providing instructions and naming someone you trust to handle
decisions on your behalf should you be unable to make those decisions in the future.
If you are deemed incapacitated, usually by a medical professional, and you don’t have a
power of attorney, the court will have to get involved. Your loved ones would need to apply for a
guardianship or conservatorship to be able to make decisions for you and the final call for who
would be your decision-maker is up to a judge. But, if you are prepared ahead of time with a
power of attorney, then you get to be involved in naming your agent and providing a basic set of
guidelines for them.
When should I make my own Power of Attorney?
Anyone over the age of 18 who has capacity can sign their own power of attorney! Because life
is unpredictable, anyone and everyone should have their own document prepared.
You can also update your power of attorney as time goes on. Maybe you made yours when you
bought your first home, and now it’s been a few decades and you are closer to retirement. Yourneeds change, and your estate changes, so it’s worthwhile to revisit the documents you have in
place. Additionally, if the person you named to be your agent has moved or is not someone you
are in touch with anymore, these are good reasons to take a second look at updating your
power of attorney.
How can I get my Power of Attorney?
Meet with Striegle Law to put your Power of Attorney together. You can do so while completing
your other estate planning documents. We’ll guide you through a simple process to protect
yourself for both the known, and the unknown.