Most people think of establishing a Power of Attorney in relationship to their estate plan, appointing someone to handle your assets and affairs. But this single legal document can do so much more. How might it benefit you in other ways?
First, a power of attorney (POA) is basically providing legal authority to someone else to act on your behalf. Plain and simple. Obviously, you’ll want to select an individual you trust to act in your best interests, so choose someone you know very well. Now, what are the six ways a POA can benefit you?
- Incapacity. Suppose you become incapacitated for any reason, such as injury, illness, or old age. In that case, the appointed individual can step in to make decisions you would typically have made.
- Finances. The POA allows this individual to pay your bills, access your bank accounts, and more. This benefit can ensure your monthly bills are still paid on time, for example.
- Healthcare. This is a significant benefit of having a POA, usually called a Healthcare Power of Attorney. If you are hospitalized, unable to speak for yourself, and the medical care team needs permission to proceed with a treatment, your trusted agent can provide that permission, or not, based on what is in your best interest.
- Business. If you are an “in-demand” business owner or high-level executive, you already know you can’t be in two places simultaneously. When it comes to signing important contracts or making key decisions having an agent you’ve authorized to do that for you can be a real time saver.
- Travel. If you are a frequent traveler or live abroad some of the year, having an agent you’ve appointed back home can be very convenient. Maybe you’re selling some property, and someone needs to attend the closing, but you’re in Europe. Your agent can do that on your behalf.
- Estate Planning. Last but not least, when creating or updating your estate plan, establishing a Power of Attorney plus one specifically for Medical Directives should be included. And don’t forget a Living Will.
When I help clients with their estate plans, I always customize them to their unique needs. And I recommend a regular review to ensure all the documents remain correct and relevant. Unfortunately, people die, or we part ways with those we thought would be friends forever. Imagine you appoint a close friend as your POA agent only to have a major falling out two years later, resulting in an adversarial relationship. It can happen. You most certainly do not want that individual to have access to your bank accounts or make medical decisions on your behalf. That’s why I offer my clients a complimentary review of all the estate plan documents every three years. Let’s talk about how a Power of Attorney can benefit you. I can be reached at 513-399-7526 or through my website, www.davidlefton.com.