People who are working on their estate plan will usually focus on things like who is going to get specific assets in their will. This is only part of what needs to be addressed in a comprehensive estate plan, however.
Setting up plans for what will happen if you become incapacitated is another important component of an estate plan. This helps to provide peace of mind for your loved ones if you can’t make important decisions for yourself.
What does a power of attorney do?
A power of attorney is a legal document that gives someone permission to handle certain tasks for you. There are typically two powers of attorney that are part of an estate plan. One of these covers medical decisions and the other handles financial matters. You can name the same person for both roles or you can have a different person for each one.
The person you name for each of these should be able to make decisions in your best interests without considering their own feelings. Some people choose to name an immediate family member, but others don’t want to put the pressure and responsibility on that individual when they may already be dealing with trauma and grief.
What should you do to take care of your future?
Establishing the power of attorney for health care and another for finances ensures that your affairs will be handled even if you can’t handle them yourself. If you don’t have powers of attorney established already, it’s time to get them done. That’s the best way to protect your future and your family.