For many people, the process of creating an estate plan will involve decisions about how a person’s assets will be passed to their heirs after their death. However, estate planning may also address a person’s needs throughout the remainder of their life, including ensuring that they will receive the proper medical and personal care and that their finances will be managed correctly. One way of doing so is through durable powers of attorney. By understanding how these agreements can be used and the benefits they provide, a family can make sure a person’s wishes will be followed, no matter what happens.
Reasons to Create Durable Powers of Attorney for Healthcare and Finances
A power of attorney is an agreement in which a person (known as the “principal”) will give someone else (known as their “agent”) the authority to make decisions for them. A power of attorney for healthcare will address issues related to the medical care a person receives and other personal needs, while a power of attorney for finances or property will address issues related to a person’s income, assets, financial resources, and expenses. Powers of attorney are considered to be “durable” if they contain provisions that state that the agent’s authority will remain in effect even if the principal becomes incapacitated. That is, if a person becomes unconscious due to an illness or suffers from dementia or other mental health issues that affect their ability to make their wishes known, their agent will continue to have the authority to make decisions on their behalf.
Benefits of a durable power of attorney include:
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