What is a Power of Attorney (POA), and why should you have one?
A power of attorney is a legal document that allows you to appoint someone you trust to make decisions on your behalf.
There are two common types of powers of attorney:
1. Financial Power of Attorney
A financial power of attorney allows someone you choose to handle financial matters on your behalf. Depending on how the document is drafted, this can include tasks such as:
• Paying bills
• Managing bank accounts
• Handling real estate transactions
• Managing investments and other financial matters
2. Health Care Power of Attorney
A health care power of attorney allows you to appoint someone to make medical decisions for you if you are unable to make those decisions yourself.
When does a power of attorney take effect?
Powers of attorney can be drafted in different ways.
Some become effective immediately after they are signed. Others become effective only after a medical finding that you are unable to make decisions for yourself.
The right approach depends on your individual circumstances and goals.
Why should you consider putting a power of attorney in place?
Without a valid power of attorney, your loved ones may need to go through a guardianship proceeding in order to manage your finances or make medical decisions on your behalf if you become incapacitated.
Having powers of attorney in place allows you—not a court—to choose who will make decisions for you.
Estate planning is not just for retirees or wealthy individuals. Every adult should consider having these important documents in place.
Freeman & Johnson Law Office can help you create an estate plan that protects you and your loved ones and gives you peace of mind for the future.
