Many adults do not have any estate plan whatsoever. Those who do often have basic wills and no other documents. However, integrating additional legal instruments into an estate plan can be a beneficial decision.
Estate plans can provide guidance to family members and support for people during times of vulnerability. Powers of attorney can be particularly important inclusions in modern estate plans. Powers of attorney allow the principal drafting the document to appoint a specific person to handle financial matters or medical decisions on their behalf. There are numerous reasons that people decide to draft powers of attorney, including the three below.
Becoming an unmarried adult
Once a teenager turns 18, their parents no longer have access to their medical records or the ability to make decisions about their medical support in an emergency. Until that individual marries, there may not be anyone to speak on their behalf in an emergency.
Medical powers of attorney can authorize parents or other trusted individuals to handle healthcare matters for a young adult if they become incapacitated. Financial powers of attorney can also be beneficial, as they can help ensure that someone fulfills an individual’s financial obligations while they remain incapacitated. Married people who divorce and adults who decide to never marry may also benefit from adding powers of attorney to an estate plan at any age.
Preparing for retirement
Many people looking forward to their golden years create plans to protect them from the possible challenges that may arise later. For example, older adults may develop dementia, Alzheimer’s disease or other conditions that affect their ability to live independently. They could be at risk of an outside party seeking guardianship over them. By establishing durable powers of attorney, older adults can choose someone of their own volition to make decisions about their medical needs and finances if they become incapacitated.
Responding to a recent diagnosis
Some people start thinking about incapacity and similar issues specifically because they face a substantial decline in health in the near future. Those facing cancer and other terminal or progressive medical conditions may need to think about the possibility of becoming incapable of handling their own affairs. Powers of attorney give individuals facing significant medical challenges the peace of mind that comes from knowing someone they trust can pay their bills or communicate with healthcare professionals about their support needs.
Drafting powers of attorney can be useful for most adults, especially those preparing for their golden years or who are facing major medical challenges. People who add the right paperwork to their estate plans are less vulnerable should an emergency arise.