Incapacity Planning: Why You Need a Durable Power of Attorney

How much do you know about incapacity planning? What about a durable of power of attorney? If you’re unfamiliar with these legal matters, you may want to sit up and pay attention.

A durable power of attorney [part of incapacity planning] has the following aspects:

• Allows you to appoint someone to manage your financial affairs if you are unable to do so.
• It is effective once signed.
• It is not effective once you pass away.
• Can avoid guardianship.
• It’s very powerful; trust whomever you appoint.

As you get older, you have to face making certain legal decisions that may affect your life. It’s important to think about incapacity planning, including filing a durable power of attorney.

The legal decisions you make today will not only protect you from others who may take advantage of your health and mental capacity, but they’ll give loved ones guidance about the care you’d like to receive.

Keep reading to learn the reasons why you need a durable power of attorney. Take the time to get the document. The phone call and visit to an attorney to get your affairs in order will be worth it.

Top Reasons Why You Need to Get a Durable Power of Attorney

No one enjoys talking or thinking about what may happen in life. But a durable power of attorney can make your life and your family’s life easier when it comes to your health and financial affairs.

Here are the top reasons why you need a durable power of attorney:

Health Care

A durable power of attorney for health care [medical power of attorney] gives the trusted confidant you appoint the authority to carry out health care decisions on your behalf. In the event you can’t speak,

you’ll need someone who can communicate with doctors and hospital staff about the medical treatment you need. The agent (person you chose) also has the authority to communicate the medical instructions you want, i.e., do not resuscitate (DNR). The person you choose can also decide whether or not to admit or discharge you from a hospital or nursing home and who has access to your medical records.

Finances

 A durable power of attorney for finances gives your appointed agent the authority to make legal and financial decisions on your behalf in the event you can’t do so. You can give your agent access to your checking and saving accounts, investments, and property in order to pay your bills. If you become incapacitated and don’t have a durable power of attorney for finances, a judge will appoint someone to overlook your care and finances (you would be conserved). It’s better to appoint a trusted confidant vs. having a stranger, someone you don’t know, look after your financial affairs.

Be Prepared! Get a Durable Power of Attorney

It’s understandable that you may not want to think about death. But the reality is that it happens to everyone. And think about this. If something happens to you, your loved ones may have to make decisions they’re not prepared to make. Or, they may have to hire an attorney and go to court to get the authority to manage your health care and finances.

Keep in mind that some banks and other financial institutions may not accept powers of attorney other than their forms. If you haven’t contacted an elder care attorney about creating a durable power of attorney, consider making an appointment today. After completing your incapacity or estate planning, the next step is to sit down with your family and discuss the decisions you’ve made and why.

Want help with recording the necessary information needed for estate planning? Download this personal information handbook and start documenting your assets, burial wishes, and more.