As the New Year approaches, it’s a perfect time to reflect, plan, and make resolutions that matter. One of the most thoughtful actions you can take for yourself and your loved ones is creating or updating your Power of Attorney (POA). This legal tool not only empowers you but also safeguards the people who may need to care for you in the future.
What is a Power of Attorney?
A Power of Attorney is a legal document that allows you, the principal, to appoint someone you trust, known as your agent, to make decisions and take actions on your behalf. Your agent can handle financial matters, healthcare decisions, or other important tasks when you’re unable to do so.
Why Do You Need a Power of Attorney?
Even if you’re healthy and capable now, life can be unpredictable. A Power of Attorney ensures your wishes are carried out if you face an illness, accident, or other incapacitating event. Importantly, this document must be signed while you’re still competent.
Without a POA, your loved ones could face significant challenges, including being unable to access financial accounts, arrange medical care, or manage your affairs. In such cases, families often need to pursue guardianship—a costly and time-consuming legal process.
What Can a Power of Attorney Include?
Your Power of Attorney can be customized to suit your needs. Examples of what your agent can do include:
Buying or selling property (with proper notarization).
Managing bank accounts and investments.
Applying for public benefits like Social Security or Medicaid.
Running your business.
Making healthcare decisions, including end-of-life care.
A well-drafted Power of Attorney ensures your agent can act on your behalf without gaps or confusion. For instance, provisions for Medicaid planning or spousal property transfers can be essential for future needs.
When Does a Power of Attorney Take Effect?
You decide when your agent’s powers begin. It could be immediately, allowing them to assist you while you’re still capable, or only in the future if you’re no longer able to manage your affairs.
Can You Revoke or Change Your Power of Attorney?
Yes! As long as you’re competent, you can update or revoke your POA at any time. This includes canceling an old POA with a formal statement and notifying those who need to know, including your agent.
Durable Power of Attorney
A durable Power of Attorney remains valid even if you become incapacitated. This can cover healthcare, financial, or both types of decisions, depending on your preferences.
Do You Also Need a Will?
Yes. A Power of Attorney is essential while you’re alive but ends upon your death. A will ensures your assets are distributed according to your wishes and provides for your loved ones after you’re gone.
A Power of Attorney is one of the most important tools in your estate plan. It helps protect you, your family, and your assets while ensuring your wishes are honored.
For assistance, call us at 206-703-0764 or contact us online to schedule a consultation.
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