While many people focus heavily on what to do with their assets when they’re creating an estate plan, it’s also important to think about who will help to protect their interests and their assets if they become incapacitated. Setting up power of attorney designations as part of your estate plan can address this need.
There are two primary concerns that your power of attorney designations can address, should you choose to set up designations in your own estate plan. One of these is your finances and the other is your medical care. You can have one person manage both of these concerns or you can have someone different to manage each.
What are power of attorney designees responsible for?
A financial power of attorney designation allows the individual you name to make all decisions related to your finances. This includes paying your bills, taking care of your assets and managing your investments.
The person who you name in the power of attorney for medical care works with your medical care team to determine what types of treatments are in your best interests. These must comply with any instructions you included in your advance directives document.
You should choose the designee for each of these areas carefully. They should understand your wishes and be able to comply with those without considering their own wishes.
Getting a comprehensive estate plan together can help to give you peace of mind. It can also take some of the stress off your loved ones if you become incapacitated or pass away. Working with someone familiar with these matters can help you to ensure that you get everything in order as effectively as possible.