Having discussions about what will happen should you become ill or pass away is never enjoyable, but it’s necessary to have proper documentation in place, at any age. Below, learn about how you can protect yourself and your assets.
What is a power of attorney?
It’s important to have a power of attorney document in place so that someone you trust can make financial or health-care-related decisions on your behalf should you become incapable of doing so yourself. The attorney you choose can be a family member, spouse, or trusted friend, and there are two types:
- Your personal care attorney makes health care, housing, and personal life decisions such as food and clothing
- Your property attorney makes decisions regarding your finances, including bills, your investments, and maintaining or selling your home
Note, that you can also appoint a power of attorney for a limited or specific time frame, or decide to grant an enduring or continuing power of attorney that comes into effect on a specific date or only if you become mentally incapable.
Why is it important to have a power of attorney for property?
Your family—including your spouse—cannot make decisions for you if you do not have an attorney for property. In this case, they may have to become a court-appointed guardian, which involves going to court. It’s also important that your power of attorney has access to the document and your will, to make the process easier should anything happen.
What about an executor or estate trustee?
A power of attorney makes decisions for someone while they’re still alive but unable to make decisions themselves. An executor carries out the wishes designated in a will once someone passes away. These tasks may include arranging the funeral, distributing money to beneficiaries, and paying taxes and debts.
If you have created a trust, you can appoint an estate trustee in addition to an executor to specifically take care of and distribute those assets, until the trust is dissolved.
When should I set up a power of attorney?
Power of attorney, executor, and estate trustee are all important designations to ensure your health and assets are taken care of, both during your life and after. It’s never too early or too late to contact a lawyer to begin the process of setting up these protections.
Have questions about power of attorney? Give us a call, we’re ready to help you.
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