No one expects to become the victim of a car crash or suffer through a serious disease, but it is wise to prepare for potentially life-changing issues.
Medical and financial powers of attorney (POAs)are excellent estate planning tools that can increase peace of mind for you and your family.
The POA for healthcare
If you should become incapacitated, the person you name as your agent in a POA for healthcare can make medical decisions on your behalf. Your agent will have the authority to make a wide range of decisions from the kind of hospital care you receive to home healthcare or nursing home choices. Your agent can even make decisions about what you eat and who bathes you.
The POA for finances
The financial POA usually accompanies the medical POA. Your agent will have the legal authority to access your bank accounts in order to record earnings and pay bills. He or she can pay your taxes, make investment decisions on your behalf, manage your properties and apply for federal benefits such as Medicare or Medicaid. Even if you are healthy, your agent can help you balance your checkbook and handle other day-to-day financial responsibilities.
The wisdom of advanced planning
With aging comes the possibility of some level of dementia. It is, therefore, wise to create and sign powers of attorney while you are still mentally competent; otherwise, a POA will not stand up in court. Advanced planning will allow you to enjoy peace of mind and save your family from having to go through the expense and red tape of obtaining a guardianship in order to care for you.
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