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3 different powers of attorney people may want to draft

On Behalf of | Oct 5, 2024 | Estate Planning

Powers of attorney are some of the most important inclusions in modern estate plans. They protect people in situations where they cannot act on their own behalf. Principals drafting powers of attorney select people they know and trust to assume certain important roles when they have an incapacitating emergency. They can even limit the authority they grant to prevent people from abusing that power.

A heart attack or a car crash could leave someone in the hospital unconscious or incapable of communicating with others. In that situation, powers of attorney can prove invaluable to a person who is unable to assert their own wishes. Those creating or expanding their estate plans may want to consider including three different types of powers of attorney, depending on their circumstances.

Medical powers of attorney

Young adults who have just turned 18 could benefit from medical powers of attorney. Their parents cannot act on their behalf anymore, and they may not have a spouse to speak for them. Medical powers of attorney transfer the authority to make key health care decisions to a specific person. The person who has medical power of attorney can talk with doctors about someone’s condition and make decisions about their care.

Financial powers of attorney

Someone incapacitated in the hospital can’t pay their bills, manage their resources or run a business. Principals can name a trusted individual or even a professional fiduciary to address their financial needs or manage their business until their condition improves or they die.

Durable powers of attorney

Basic powers of attorney can lose their authority if an individual becomes permanently incapacitated. People may want to draft durable documents. Durable powers of attorney are different because they include language intended to extend the longevity of the document. They can effectively choose their own guardian instead of risking an involuntary guardianship where any concerned individual could obtain authority over their daily life and resources.

The decision to add powers of attorney to an estate plan can protect people from emergencies and provide them with peace of mind. Creating the right documents, adding appropriate restrictions and choosing the right agent are all important elements of establishing powers of attorney.

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