Who Will You Select as Your Power of Attorney?
There may come a time when you are no longer able to make legal or financial decisions. To prepare for when that time comes, consider appointing a power of attorney to act on your behalf. Choosing someone as your power of attorney means you permit them to handle your financial matters, make medical decisions for you and decide what happens to your assets.
There are types of power of attorneys that can help manage different areas of your life. Know all your power of attorney options and when the best time is to decide who your power of attorney will be.
What is a Power of Attorney?
A power of attorney is the legal authorization a person has to act on your behalf. Depending on the type of power of attorney someone is, they may have the authority to make decisions about your medical care, property, finances and investments.
You can appoint someone as your healthcare power of attorney and give them the power to make health-related decisions. Or you can appoint someone as your financial power of attorney and allow them to manage your financial affairs, sign checks, file your tax returns, deposit money and manage your investment accounts.
Appointing someone as your power of attorney doesn't automatically put them in control of your life and finances. In fact, appointing someone as your power of attorney can help make you feel more secure. It's one way to help ensure your wishes are carried out whether you're the one making the decisions or not.
When Do You Need a Power of Attorney?
When you start considering what will happen to your finances, assets, investments, medical care and loved ones when you can't make important decisions, it's time to start thinking about who you trust to make those decisions for you.
Selecting a power of attorney is a decision you should make sooner rather than later. It can be a decision you consider when putting together your estate plan so that you can keep your chosen power of attorney well informed.
How to Choose Your Power of Attorney
Your power of attorney can have quite a bit of power over the well-being of you and those you care about.
One option is to name different people as your powers of attorney depending on what you need from them. You could name your financial professional as your power of attorney over your finances while naming your child your power of attorney over your medical care.
If you need help or have questions about naming someone as your power of attorney or setting up your estate plan, please contact the office.
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