Creating an estate plan means that you need to think about what you want to happen to your assets after you pass away. However, there’s another facet to estate planning that you might not realize exists. You need to consider what’s going to happen to you if you become incapacitated.
One of your primary tasks to take care of your affairs if you’re incapacitated is to set up powers of attorney. You can do this for your finances and health care, but you must carefully consider who you’re going to nominate for these tasks.
Act on your behalf
The person who has power of attorney will be able to make all decisions you could make if you were able to. You can have one person handle your finances and your medical care, but you may opt to have a different person over each area.
A power of attorney for health care lets a person make decisions about your medical care. They can’t go against your advanced directives so be sure they know what you have in that document if you have one in place.
The power of attorney for finances enables the person to make decisions about your assets, as well as the ability to pay your bills. They can purchase and sell assets, so you must ensure you choose someone you can fully trust to act in your best interests.
Making sure you have everything in order as soon as possible can give you peace of mind. It sets up a plan for your loved ones to follow when you aren’t in a position to guide them.