According to a recent poll, more than two in three Americans have no wills. In addition, many others do not have a Power of Attorney (POA) or health policy.
The thing is, these three documents are essential elements of the Legacy Plan. They work together to protect you and your assets during your lifetime and after your death. However, it is the POA that has financial and health care guidelines in place during their lifetime.
In any case, the creation of a power of attorney together with a will is in your interest and that of your relatives. This guide lists the top reasons why you might want to get a POA ASAP. So be sure to read on.
1. Rest easy knowing that your business is being taken care of by someone you trust
A power of attorney is a legal document that designates another person to make decisions on your behalf. The term agent or agent refers to the person named in the POA. You, the POA owner, are the principal.
You can empower your attorney to manage your property, finances, or even health. You can give your agents extensive powers with a general POA. You can also limit their authority over your affairs with a limited POA.
It is entirely up to you to determine the tasks your agents can perform on your behalf. Just make sure your policies stay within the scope of the laws of your state. For example, you can’t force a lawyer to do something they don’t want to.
2. Medical and medical care according to your requirements
One of the things you can have a named agent do is make health care decisions when you become incapacitated. Such situations can occur due to serious injuries such as B. traumatic brain injury (TBI) occur.
Note that approximately 1.5 million people develop TBI in the United States each year. 5 to 6% of patients with TBI develop a chronic disability that makes them unable to act. Some also lose cognitive functions such as memory and communication skills.
Chronic disabilities, which affect 47% of the US population, can also lead to incapacity for work. For example, a stroke or heart attack can cause a patient to become comatose. People who are in a coma are unconscious and therefore cannot make their own decisions.
If any of this happens to you, your attorney will follow the directions in your medical POA.
As the client, you can tell the mediator the type of medical care you require. You can also list specific doctors or health care providers in your POA. You can even choose what to eat or who to bathe you if you become incapacitated.
3. You can indicate who you want to give authority to
By creating a power of attorney now, you can designate your most trusted family member or friend as your proxy. The person you have appointed as a proxy can then accept or reject the power of attorney you have given. If they refuse, you can reach out to someone else who is willing to become your representative.
However, if you become incapacitated for work without a POA, it can lead to judicial intervention. For example, some states may appoint a guardian who they believe can act on your behalf. However, that person may not be someone you personally care about your business.
This is why it is so important in estate planning to create a POA while you are still able. You can be sure that responsibility for your affairs will be entrusted to someone you trust.
4. Create financial guidelines for your assets
One of the most important tips for estate planning is creating a financial POA. It empowers an agent to manage the client’s assets, such as money and property.
For example, you can have your lawyer pay for your taxes, insurance, or loans. You can even authorize named agents to make investment decisions on your behalf. In addition, you can apply for any public or state benefits that you are entitled to.
5. Helps to relieve your loved ones
As mentioned above, anyone who has offered a power of attorney has the right to refuse it. However, some people cannot bring themselves to do this because of their love or family ties with the headmaster. As such, they take responsibility, but in doing so put their own health and life at risk.
This is particularly important for family carers who are old themselves.
For example, one study estimates that there were 43.5 million caregivers in the United States in 2020. Their average age was again 49.4. However, more than half of the caregivers were at least 50 years of age or older.
So by creating a POA now, you can authorize someone who is not only younger and healthy, but can look after you too. You can also authorize multiple people so as not to burden one person too much.
6. Travel without worries
You can carry out a POA yourself on the day you have it notarized. Your appointed agent can then act on your behalf from that point on. This can be helpful if you travel a lot and leave financial obligations behind.
For example, you can authorize your agent to sign financial documents when you are not there. Once you get back, you can exit the POA.
Another option is to create a permanent power of attorney, which is usually valid for life. This allows your agent to carry out your instructions until you terminate the POA.
In addition, you can cancel or update your POA at any time. Changing your power of attorney is a must if your proxy can no longer perform his or her duties.
Do not hesitate to set up your power of attorney
As you can see, the importance of a power of attorney goes far beyond someone administering your assets. It’s more about making sure that person is someone you trust and who has your best intentions in their hearts. Above all, it helps you not to burden your relatives with family responsibilities.
Let a lawyer help you with the creation and certification of a POA right now. The sooner you do this, the sooner you will be able to give power to loved ones or friends who stand behind you.
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Trevor Anderson wrote this article on behalf of FreeUp. FreeUp is the fastest growing freelance marketplace in the United States. FreeUp only accepts the top 1% of freelance applicants. Click here to get access to the best freelancers in the world.
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