Just over half of American adults have a power of attorney. There are two most common reasons why people fail to prepare this essential document. They either haven’t gotten around to it or do not think they have any assets that warrant getting a power of attorney. However, having one can benefit anyone, no matter how few assets they have.
1. Retain Decision-Making Power
Once you become incapacitated, you no longer have the legal ability to bequeath someone with power of attorney. There is no other option than to name a conservator or guardian. By acting now, you can remain in control by naming who you trust to have power of attorney. You can also revoke the power of attorney and name someone else should you change your mind later.
2. Avoid Conservatorship or Guardianship Proceedings
If you become incapacitated without a power of attorney in place, then your family is forced to go through the court. They will need to seek the appointment of a conservator or guardian. Because you are already incapacitated, you do not have a voice in who gets appointed as the conservator or guardian. This can leave you with someone who would not be your first choice. In addition, it can lead to conflict as multiple family members have differing opinions about who should be the court-appointed guardian.
3. Effective Asset Handling and Protection
If you become incapacitated without a plan in place, this puts your assets in jeopardy. Everything gets put on hold while your family goes through the court process to name a conservator or guardian. This may not be the best handling strategy for your assets. In addition, the designated individual may not have the best knowledge or experience for effective asset handling. This could put your assets and estate in jeopardy.
4. Better Understanding of Individual Wishes
When you award power of attorney to someone, you need to have a conversation with them about such an appointment. This creates an opportunity for open and honest discussion about your wishes. Choose someone who takes their role seriously. Outline your wants and desires should certain situations arise. It is wise to outline these wishes in writing so that they can refer to them later, should the need arise.
5. Document Execution Privacy
You don’t have to tell anyone that you have a power of attorney executed. This gives you privacy over your financial and legal matters. By maintaining privacy, you avoid unwanted and unnecessary influence over your decision-making. Waiting and going through the court makes your personal matters much more public.
6. Economical Solution
Going through the court system is a long, drawn-out process. It can also become expensive as you file documents and hire an attorney to represent you during hearings. A more economical solution is to hire a lawyer to prepare your power of attorney documents.
7. Peace of Mind
When you have a power of attorney in place, you have a crucial piece of your estate plan completed. This should give you peace of mind. If you have open and honest conversations with your family, you can feel confident that they know your wishes. Should you become incapacitated, your family can honor your wishes. Having an estate planning place gives you peace of mind knowing that your estate, assets, and financial resources are protected.
8. Prevent Financial Abuse Allegations
Once you become incapacitated, you need to trust the person who holds your power of attorney. This person will make decisions and execute actions based on your wishes and desires. This may upset other family members who disagree with the actions taken. However, your estate management is up to you, not others. Having the appropriate documents outlining your wishes can protect against financial abuse allegations. The individual can present your prepared documents to show that they are acting in accordance with your wishes.
Name a Power of Attorney
You do not have to be a particular age to have a power of attorney prepared. Life is unpredictable, and you could become incapacitated for various reasons. A comprehensive and detailed power of attorney protects you, your assets, and your family. So give yourself peace of mind by speaking with an estate planning lawyer about creating your power of attorney.
Schedule a consultation with one of our attorneys to start the process of creating a power of attorney.
