Nobody wants to think that a day will come when they will be mentally incapacitated or unable to make decisions any longer. While this thought is far from pleasant, it’s important for you to prepare for your future in any circumstance. Therefore, it’s imperative that you have certain legal documents in place, like a power of attorney, to give someone you trust the ability to make certain decisions for you.
What Does a Power of Attorney Do?
A power of attorney allows a person that you appoint (otherwise known as your “agent” to take actions such as managing your financial affairs or signing your name on documents. As CNN Money notes, it’s important for you to appoint an agent who will act in your best financial interest and follow your wishes at all times.
The next step is determining whether you would like a springing power of attorney or a durable power of attorney. An estate planning lawyer in Downers Grove can help you make the best decision.
Durable Power of Attorney
A durable power of attorney becomes effective as soon as the documents are signed; it will also continue to be effective if you wind up incapacitated. The risk involved with this type of power of attorney is the fact that your agent immediately has control over your financial assets. Therefore, it’s wise to pick someone you can trust implicitly if this is the choice you make.
Springing Power of Attorney
A springing power of attorney only goes into effect once you have become incapacitated. Your agent will be able to make decisions for you only at the point where it has been proven that you cannot make decisions for yourself. In some cases, it may be difficult for your agent to prove that this is the case, but overall, if you’re concerned about the risks of a durable power of attorney, this is the better choice.
In general, however, as NerdWallet advises, if you have any doubts whatsoever about the trustworthiness of your agent, you shouldn’t be giving them power at all!
Living Will
Similar to a power of attorney is a living will, which designates a healthcare proxy – a person who carries out your medical wishes after you are incapacitated. An attorney can also help you draft a living will in addition to a power of attorney if you are planning your estate and future.
Overall, both of these documents are wise, and even essential, for all adults to have.
The Fitzgerald Law Firm can help you with all manners of estate planning and associated legal documents. Contact us for a consultation today.
