Creating an estate plan is a major undertaking. Many people think this is because they have to determine what to do with their assets, but that’s not the only decision that has to be made. If you’re creating an estate plan, you have to think about who will make decisions for you if you become incapacitated.
You can set up a power of attorney to give someone the ability to make medical and financial decisions for you. The same person can have both, but you also have the option of choosing someone different for each one.
What decisions can a power of attorney make?
A person who has financial power of attorney can make any financial decisions you’d normally make. This can include paying your bills, making or selling investments or buying and purchasing assets. You can set limits for these actions in the power of attorney.
The person who is your medical power of attorney can make healthcare decisions for you. They work closely with your medical team and must follow any terms you have in your advance directives.
It’s critical that you choose someone who can follow your wishes. The person must be able to put your interests first and be able to make decisions without thinking about what they want. Being responsible and able to stand up for what’s necessary are also critical.
Ensuring that you have a comprehensive estate plan can help to make things easier for your loved ones. It’s imperative that you have everything set up in a manner that’s legally enforceable. Working with someone familiar with these matters may be beneficial, so you can get the plan set and enjoy the peace of mind knowing that your loved ones know your wishes.