Power Of Attorney
LexInter | March 8, 2022 | 0 Comments

Why A Power Of Attorney Is An Essential Estate Planning Tool

Estate planning is a legal procedure that dictates the distribution of all your assets upon your death. It’s one you sit down with and draft together with your lawyer. When broken down into different facets of estate plans, one of the most important documents to have is a power of attorney.

In legal terms, the power of attorney refers to the document that gives you the power to appoint someone to manage your financial properties and medical affairs. It gives you that higher level of control that you wouldn’t otherwise have without going through making one.

You may check this site to learn more about the power of attorney, then continue reading to know why it is essential in estate planning.

Decide Who Makes The Decisions For You When You’re Unable To

You have no control over what happens to your heirs and the assets you leave behind when you die unless you have a lawyer take care of things for you beforehand. Inheritance disputes and other disagreements are bound to happen if you don’t prepare early on.

Apart from death, losing your mental capacity to make decisions is also a possibility. These decisions don’t just pertain to financial matters, but even those relating to your health, medication, among others.

Decide Who Makes The Decisions For You When You’re Unable To

By not naming someone you trust to make the decisions on your behalf, you may lose control over what you’ve worked hard for. Medical-related resolutions may also be put on hold or even disregarded if there is no immediate family to reach out to. A power of attorney allows you to name that individual. This means that when you can’t speak for yourself anymore, the court and the lawyers know who to call.

Be More Confident Than You Would Without One

When you’re no longer around, even the appointment of one who will make all the decisions can cause dispute among family members. Thus, you can avoid such disagreements by deciding on that for yourself through a power of attorney.

The estate planning process can be more straightforward and convenient when lawyers and the court have no questions to answer. They know what to do because you’ve laid out all your plans and directives. This convenience spills over to your family as all they have to do is comply with everything you’ve set in your estate plan.

However, know that the estate planning process can be tricky. It can be time-consuming and expensive, particularly for those who aren’t prepared for it. Without the proper legal documents, it will take a long time before your heirs can take hold of your assets.

State Specific Estate Planning Laws

Trust It Would Take Care Of You And Your Future, Even In Your Absence

A power of attorney is an all-encompassing tool that can cover an extensive range of your finances and life in general. This is all the more reason why you should consider having one made.

Here are the different types of power of attorney you can set up and what it covers:

  • Ordinary Power Of Attorney. This covers decisions you need to make about your financial affairs. This power of attorney applies even when you still have the mental capacity to make decisions but needs the help of someone you trust to make those on your behalf.

An example of this type is when you travel abroad or undergo hospitalization after a medical procedure.

  • Lasting Power Of Attorney. This can cover matters like:
  • Buying and selling property
  • Arranging any repairs for your properties
  • Investing money
  • Lasting Power Of Attorney For Health And Care Decisions. This power of attorney can only be used if you lose your mental capacity to make decisions. This can include the following matters:
    • What kind of social activities do you want to do to keep a social life despite your dwindling health
    • Where you should live, in case you can no longer be left alone in your home
    • What you should eat to maintain your state of health

Conclusion

Estate Planning Laws

When you gather everything above as one, the main benefit of having a power of attorney is peace of mind. In general, estate planning is for financial security and the future of those you may leave behind, like your beneficiaries and heirs. Death is a natural thing, but in most cases, you’ll never know when it will happen to you. With a power of attorney, you have someone you trust to make decisions on your behalf should you lose the capacity to do so. With a good lawyer by your side, start discussing the power of attorney you need as you likewise begin your estate planning process.

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Lexinter Law, with a team of dedicated authors who strive to provide you with all the relevant and actionable tips on the legal aspect of your life. Our goal is to educate you so that you can make legal action with ease, or find the right person who can help you with your unique personal legal dilemma. Take care!

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