There are many things that you have to consider when estate planning. One of them is the fact that you can become incapacitated at any time, so you need to have a plan in place for who will make decisions on your behalf. This is where the power of attorney comes in. Read on to learn more about this important estate planning tool.
What is a power of attorney?
A power of attorney is a legal document in estate planning that allows you to appoint someone else to make decisions on your behalf. Power of attorney is often used for financial matters, medical decisions or both. It may be limited to specific tasks, such as making decisions about your health care or handling your finances.
What are the benefits of a power of attorney?
The agent you appoint will be able to manage your assets, pay bills and file taxes as necessary. It can also help reduce stress on family members who may not live nearby or who might get overwhelmed with other responsibilities at the time that you need them most.
The power of attorney is a great way to provide a sense of security for you and your family. Knowing that someone is in charge if something happens to you will give everyone peace of mind, which may reduce the likelihood of disagreements over estate planning decisions.
Who should you appoint as your attorney-in-fact?
The person you choose is your “attorney-in-fact.” You need someone who will be able to handle such a large responsibility, and this may not necessarily be one of your family members. Your attorney-in-fact should be someone you trust to keep your estate planning wishes in mind. In addition, the person must have a good understanding of estate planning laws and how they can affect you personally.
Estate planning has many elements, and the power of attorney is one that you cannot afford to overlook. The good news is that it’s relatively easy to set up, and it can provide a great deal of peace of mind for you and your loved ones.