When people think about estate planning, their focus is often on what happens after death. Successful professionals, parents and many others establish estate plans specifically to control what happens with their resources and provide support for their family members after their passing.
However, estate planning can also provide people with protection if they experience a personal emergency. Advance directives that take effect during incapacitating incidents are a critical form of protection for vulnerable people, including those with medical challenges, unmarried adults and those planning for retirement.
Powers of attorney are among the most popular and useful potential additions to an estate plan. What function do powers of attorney serve?
People can establish a support system
When a principal drafts powers of attorney, they extend legal authority to a specific person in the event of the principal’s incapacitation. The document does not diminish the principal’s legal authority if they remain healthy and retain their mental capacity. It only takes effect in an emergency scenario.
An agent or attorney-in-fact may have financial authority in some cases. They can pay bills or manage business affairs. Other times, people may grant their agent medical authority to make choices regarding their health care.
In an emergency scenario where a person becomes unconscious for an extended period or experiences medical challenges that prevent them from handling their own affairs, powers of attorney take effect. The agent the principal appointed can pay their bills, run their small business or oversee their medical treatment. Particularly when the principal does not have a spouse to act on their behalf, powers of attorney can provide invaluable protection.
In some cases, people specifically draft durable powers of attorney. These documents retain their legal power even in cases where the principal who drafted the documents becomes permanently incapacitated. Instead of being at risk of an involuntary guardianship where any person could seek legal authority, they can choose the person who manages their affairs ahead of time.
People who have drafted powers of attorney can feel confident about their protection in an emergency scenario. Adding the right documents to an estate plan can help people navigate even the most complicated situations. Powers of attorney are beneficial for people in a wide range of different circumstances.