POWERS OF ATTORNEY
A power of attorney is a written authorization to represent or act on another’s behalf. Two important Power of Attorney documents included in an estate plan are a Health Care Power of Attorney and a Financial Power of Attorney. Powers of attorney are often prepared between spouses or other close family members in this respect. Power of Attorneys are “durable” meaning they exist throughout your mental or physical incapacity. These documents are very flexible and can be adapted to meet the needs and wishes for your circumstances.
Health Care Power of Attorney
What is a Health Care Power of Attorney?
A Health Care Power of Attorney compliments a Health Care Directive but is unique in its purpose and function. A Health Care Directive comes into effect only when needing life-sustaining treatment to postpone the moment of death or maintain you in a permanent unconscious state. A Health Care Power of Attorney is not limited to terminal conditions and addresses all types of health-care decisions. A Health Care Power of Attorney grants a named individual the authority to make certain healthcare-related decisions on your behalf. This document only becomes active in the event you are physically or mentally unable to make the decisions for yourself. The authority you grant to someone else is limited in its scope pursuant to your wishes and preferences. This document will define the sort of treatments you do or do not desire.
What Happens Without a Health Care Power of Attorney?
A Health Care Power of Attorney provides you the ability to have health care decisions made effectively, conveniently, and quickly in the event of your physical or mental incapacity. Without this power of attorney, the individual making these decisions could be unaware (or unwilling to grant) procedures within your desires and/or preferences. Someone can seek this authority through a court process, but this will waste precious time and opens the door to potential lengthy litigation.
Financial Power of Attorney
What is a Financial Power of Attorney?
A Financial Power of Attorney is a key component of anyone’s life and estate plan. Life circumstances may place an individual in a position (or location) where they are unable to make or execute key financial decisions for themselves. A Financial Power of Attorney grants a named individual the authority to act on your behalf with respect to your financial affairs. A properly drafted power of attorney will be clear and specific in limiting authority in accordance with your needs and wishes. The term, “financial affairs” can be defined as one specific bank account or piece of property or can refer broadly to all finances. Generally, this document only becomes active in the event you are not physically or mentally able to make the decisions for yourself. However, you can determine additional events to trigger its authority.
What Happens Without a Financial Power of Attorney?
A Financial Power of Attorney is about your ability to have your property and financial matters handled effectively, conveniently, and quickly in the event of difficult or unforeseen personal circumstances. Without this power of attorney, and you become incapacitated, someone would have to seek authority through a court process. This process will result in delays in handling your affairs and added court expenses.