Your estate plan lets your loved ones know what you want to happen to your assets when you pass away. There are also various aspects of your plan that can take care of matters while you are still living.
When you create your estate plan, you should establish power of attorney designations. You need one for health care and one for finances. You can name the same person for both or you can have someone different for each one.
What can a person with power of attorney do?
The person who has the power of attorney for your finances can make all the decisions you’d normally make about your bank, investment, retirement, and savings accounts. They can buy and sell assets. They will also be responsible for paying your bills. It’s often possible to set limits for them.
The individual who has medical power of attorney will make decisions about your health care. If you have an advanced directive, the medical team will follow that and then turn to the person with power of attorney for other decisions.
Whoever you name for these duties should be able to make the decisions that you would make. They shouldn’t be doing anything self-serving so be sure you choose someone who can think clearly even though they’re emotional about your current condition.
Taking the time to make plans for your affairs in case you become incapacitated is important. This is one component of your estate plan that you can’t forget. Working with a person who’s able to help you discover the tools that can make your wishes a reality is important.