Estate planning can involve establishing a legacy. It may also entail making plans for personal protection in an uncertain world. People sometimes draft documents that take effect while they are still alive in case they have some kind of medical emergency.
Powers of attorney allow the principal drafting the documents to select someone trustworthy to manage their affairs. An attorney-in-fact or agent can make medical decisions for an incapacitated person. They can also pay their bills or help manage their business.
Powers of attorney can be useful to people in a broad assortment of different personal circumstances. The three groups of people mentioned below are among those who may have the strongest need for powers of attorney in their estate plans.
1. Unmarried adults
People who never marry or who get divorced do not have a spouse to act on their behalf. Without a spouse, adults generally do not have anyone to provide them with financial support or to manage their medical needs.
They are vulnerable if they become incapacitated due to an injury or a major medical event, like a heart attack. Unmarried adults, including college students, young professionals and divorced individuals, may benefit from drafting powers of attorney. They can empower someone to manage their affairs when they cannot.
2. People preparing for retirement
Powers of Attorney are useful for those at any age because of the possibility of an unpredictable emergency. However, they are especially useful for those who may be on the cusp of declining health.
Older adults may eventually experience cognitive decline that prevents them from managing their own affairs. They are at risk of other people going to court and seeking legal authority over them. People often create durable powers of attorney as they prepare for retirement so that someone they chose can assume and retain authority even if they become permanently incapacitated.
3. Those dealing with chronic medical issues
Individuals with chronic, progressive or terminal medical conditions may understand that they are vulnerable. Even if they have a spouse, they may want to take the pressure off of their closest loved ones if their condition worsens.
Those with major medical challenges may recognize that they are more likely to need support than the average person. They may want to add powers of attorney to their estate plans to protect against inappropriate medical interventions, financial hardship and unnecessary stress for their loved ones.
Drafting powers of attorney can give people peace of mind and protection. Those with robust estate plans have access to support if they experience an incapacitating medical incident or their health declines as they age.