Giving someone power of attorney enables them to make decisions on your behalf. These choices may be judicial, fiscal, or medical. There are numerous types of powers of attorney, each with certain advantages and restrictions. When you lose the ability to make your own decisions. The agent (the person you choose) loses legal authority under a general power of attorney. In this case, how do estate planning attorneys establish a durable power of attorney? Let’s understand it below.
However, this restriction does not apply to durable power of attorney agreements. For example, you could be interested in designating a loved one to make decisions for you if you are planning an emergency or your end-of-life care when you are no longer in a state to do so.
What Kinds of Durable Power of Attorney Exist to establish the estate planning attorney?
People appoint durable powers of attorney for a variety of reasons, but they typically fall into two categories: financial and healthcare decisions.
1. Healthcare
Durable Power of Attorney for Healthcare. A durable power of attorney enables the agent (your designated representative) to make medical choices on your behalf if you cannot own it.
A durable power of attorney enables your healthcare agent to:
- Speak with medical professionals to go over healthcare alternatives and make a choice.
- Obtain updates on your medical data
- Respect any advanced directives you have made regarding your medical treatment. These can involve forgoing medical care or trying to live longer.
When making medical decisions, a durable power of attorney for health care supposes to have your best interests in mind. Many people opt for close family or friends as their agents.
2. Financial
Durable Financial Power of Attorney. When you become incapacitated or are ruled unable to make decisions for yourself, a financially stable power of attorney enables your agent to handle your finances. An economic power of attorney can perform several essential tasks, including:
- Timely payment of your bills, taxes, and medical charges
- Taking care of your retirement funds, real estate, and investment accounts
- Operating your small business when you’re away
When you cannot manage them, a financial power of attorney can help ensure that your funds, investments, and way of life are safe.
You Should Create a Durable Power of Attorney
Contrary to popular belief, you do not only need to consider a power of attorney when making end-of-life arrangements in your senior years. The truth is that creating a lasting power of attorney can help persons of all ages.
A lasting power of attorney can be set up to:
- Be ready in case of unexpected sickness or accident
- Create a legal relationship with a trusted friend or spouse.
- In case of your passing or severe illness, guarantee your children’s financial security.
Your particular needs will determine whether you choose a durable power of attorney for finances or health care. Many individuals include both powers of attorney in their estate plans.
How Can a Durable Power of Attorney Be Created?
The decision of who will act as your power of attorney involves many factors. You might be attempting to decide between one of your children, one of your parents, or even a couple of your close friends, depending on where you are in life and your family dynamics. You must pick a family member or friend you trust to operate in your best interests.
Make sure whoever you choose is aware of what you expect from them. You can lay out a plan for them to follow that outlines your preferences (like an advanced healthcare directive), but there may be instances in which they must act independently in your best interest.
Role of an Estate Planning Attorney
For a smooth process of creating a durable power of attorney, contact a qualified estate planning attorney to help ensure that your wishes are honored. Estate planning attorneys have knowledge and experience, which would be helpful for your financial and family security.
Conclusion
An estate planning attorney is undoubtedly helpful in letting you know all types of durable power of attorney and the limitations of their given authority. Durable power related to your health or financial decision must be passed to someone incredibly loyal, like a friend, family, or partner. Doing everything within the law of your residential state is essential since the law varies from state to state.
