Why Every Estate Plan Needs a Power of Attorney

Do you know why a Power of Attorney is a critical part of an estate plan? Imagine this: your father suddenly suffers a stroke and is unable to communicate. You rush to the hospital, ready to make medical decisions on his behalf, only to find out you legally cannot. The same goes for managing his finances—you need access to his bank accounts to pay his bills, but you are not authorized to do so.

This is where the Power of Attorney (POA) comes in. Having the right POA in place ensures that someone you trust can step in and make critical decisions when you are unable to do so. Let’s break down the different types of POAs and why they are essential in estate planning.

What Is a Power of Attorney?

A Power of Attorney is a legal document that allows you (the principal) to appoint someone (the agent) to make decisions on your behalf. There are two main types:

1. Medical Power of Attorney

A Medical Power of Attorney gives your designated agent the authority to make healthcare decisions if you become incapacitated. These decisions may include:

• Choosing doctors and healthcare providers
• Approving or denying medical treatments
• Deciding on surgical procedures

Without this document, state law will determine who makes these decisions, which can cause delays and conflicts among family members.

2. Statutory Durable Power of Attorney

A Statutory Durable Power of Attorney (also called a financial POA) allows your chosen agent to handle financial and legal matters, including:

• Managing bank accounts and paying bills
• Handling real estate transactions
• Overseeing investments and business operations
• Filing taxes and handling government benefits

Unlike a Medical POA, if you do not have a Statutory Durable POA, the court will have to appoint a guardian to manage your financial affairs. This can be a lengthy and expensive process.

Choosing the Right Agent

You can appoint the same agent for both your Medical and Statutory Durable POAs, or you can choose different people based on their expertise. For example:

• A child with a medical background can be your Medical POA
• A child with strong financial skills can be your Statutory Durable POA

You can also name alternate agents in case your primary agent is unable to serve or choose co-agents who can act together or independently.

Why You Shouldn’t Delay Setting Up a POA

The Power of Attorney must be signed while you are still legally competent. If you wait too long and become incapacitated, a court will decide who makes these critical decisions for you. This can create unnecessary legal headaches and family disputes.

By putting a POA in place now, you ensure that your loved ones have the legal authority to act in your best interests without unnecessary delays or complications.

Contact Us for All Your Estate Planning Needs

Estate planning isn’t just about drafting a will—it’s about protecting yourself and your family from the unexpected. If you do not already have a Power of Attorney in place, now is the time to take action.

If you find this information helpful, share it with someone who needs to hear it. Planning ahead can save your family stress and ensure your wishes are honored.

Let an experienced estate planning attorney listen to you as you describe your facts and your goals and help you decide what option best meets your objectives. Call us today at 409-257-7878 to schedule a consultation. You can also contact us by clicking here.