If you’re considering using a power of attorney as part of your estate plan, it can be a wise move. This power of attorney can be helpful if you’re incapacitated for some reason and you can’t make your own decisions. The person that you choose is legally allowed to do this for you.
There are actually two main types of powers of attorney, and you need to know how they differ and what role each one plays. You can pick the same person for both roles, but you may also want to pick separate people.
A medical power of attorney
First of all, the agent you choose in your medical power of attorney can make your healthcare decisions for you. This could include things like what type of treatment you want to get or what type of treatments you specifically do not want to use. You need to talk with the person in advance so that they understand your wishes and desires as well as you do. Then they can make the right choices even if you are unable to communicate due to illness, disease, injury or some other factor.
A legal power of attorney
The second type is a legal power of attorney, which often handles different financial matters or legal paperwork. For instance, someone has to pay the taxes on your home or submit your income tax returns. No one is legally allowed to do this except for you, so choosing a power of attorney means that you know an agent is ready to do this on your behalf. This can be very helpful in ensuring that things go smoothly for your family.
If you’re doing your estate planning, you can see how important it is to look into all of the potential tools at your disposal.