Why You Should Have a Power of Attorney (If You Are Over 18)
There are many reasons to have a power of attorney in place. But first, what is it? A power of attorney allows you to name someone who can act on your behalf in the event you cannot act on your own behalf. People tend to think that only older folks should have this type of document. It should be in everyone's possession once you reach adulthood. You never know when an accident or sudden illness could render you unable to speak for yourself.
If something were to happen to you and you had no power of attorney in place, your spouse or children would be unable to assist you with many of your affairs.
What does a power of attorney allow?
This depends on what type of power of attorney you have. But a power of attorney allows another person to make decisions on your behalf if you become incapacitated.
Having a financial power of attorney will allow that individual to perform certain duties for you. They can open bank accounts, pay bills, handle insurance, and even purchase property on your behalf. They will have control over many aspects of your day-to-day life that require a financial decision. If you become incapacitated and do not have a power of attorney in place, your family members will be unable to do these things for you. Paying a simple utility bill from your account could become a dilemma.
Having a healthcare power of attorney will allow that person to make medical decisions for you and give consent for treatment if you are unable to. This goes hand in hand with a living will, which we will discuss in our next article. There is a big difference between a living will and a healthcare power of attorney.
I'm young and healthy, why do I need this?
Life can take many unexpected turns. Car accidents can happen at any time and leave you in a state where you cannot make decisions for yourself. Your family will be stressed enough trying to learn about your condition; the last thing they want to worry about is who can make decisions for you. Many believe that their spouse would be able to do all of these things for them if they became incapacitated. Unfortunately, this is not always the case. Having a valid power of attorney will allow your loved ones to act on your behalf.
What if I don't have one?
Your family would have to petition the courts to appoint someone to act on your behalf. This process will take longer and cost more than simply having a power of attorney in place. By having one, you are giving someone that you trust the ability to act on your behalf.
Your power of attorney is only half of the equation
As you can see, there are many reasons why you should have a power of attorney in place. A financial power of attorney and a healthcare power of attorney are commonly seen alongside a will in someone's estate plan. These documents all work together to provide answers to these questions: who can make decisions for me if I cannot make them myself, and what do I want to happen with my property when I die?
If you have a will in place but no documents covering your incapacity, you may want to revisit your plan.
Next Steps
You don't need to know everything about power of attorney before meeting with an attorney. You just need to know where to start.
Our attorneys at Stein Law can help you understand your options and draft the proper documents for your needs.
Frequently Asked Questions
What is the difference between a financial power of attorney and healthcare power of attorney?
A financial power of attorney allows another person to act on your behalf when it comes to financial decisions. A healthcare power of attorney will allow another person to make medical decisions for you if you are unable to.
Can I change or cancel my power of attorney?
As long as you are mentally competent, you can change or cancel your power of attorney. If you feel as though your needs have changed, you can always update your documents. Our attorneys can help you with that process.
I am young and healthy; do I really need a power of attorney?
You never know when an accident could occur that leaves you incapacitated. It is best to have a power of attorney in place so that someone you trust can act on your behalf.
Don't stress about what you should have in place when it comes to your power of attorney. Give us a call or text at 812-948-6000, and we can walk you through your options.
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