Why Do You Need a Power of Attorney?
Learn why a power of attorney is essential for protecting your finances and health decisions if you become incapacitated. Get legal advice from an experienced estate planning attorney.
Why Do I Need a Power of Attorney?
Estate planning isn’t just about what happens after you pass away — it’s also about making sure your wishes are followed during your lifetime, especially if you can’t make decisions for yourself. That’s where a power of attorney (POA) comes in.
A power of attorney is a legal document that allows you to appoint someone you trust to manage your financial, legal, or healthcare affairs if you become unable to do so.
What Is a Power of Attorney?
A power of attorney (POA) gives a person (called your agent or attorney-in-fact) the authority to act on your behalf. There are different types of POAs, each serving a specific purpose:
- Durable Power of Attorney – Lets your agent manage financial and legal matters if you’re incapacitated. It stays in effect even if you lose the ability to make decisions.
- Medical or Healthcare Power of Attorney – Allows someone you trust to make medical decisions on your behalf.
- Limited Power of Attorney – Grants authority for specific tasks or for a limited period of time.
Why Is a Power of Attorney So Important?
- Plan for Incapacity
Life is unpredictable. Illness, injury, or cognitive decline could leave you unable to manage your finances or make medical decisions. Without a POA, your family may have to go to court to be appointed as your guardian — a stressful, expensive process. - Avoid Court Intervention
If you don’t have a POA and become incapacitated, the court may appoint someone (possibly a stranger) to manage your affairs. A POA lets you choose someone you trust in advance. - Protect Your Financial Interests
Your agent can pay bills, manage investments, and keep your financial life on track if you can’t handle it yourself. - Ensure Your Healthcare Wishes Are Followed
With a healthcare POA, you decide who will make critical medical decisions for you, ensuring your values and preferences are respected.
Common Misconception: “My Spouse Can Handle Everything”
Many people think their spouse or children automatically have the legal authority to act for them — but that’s not always true. Financial institutions, hospitals, and government agencies often require a signed POA or a court order before allowing access.
When Should You Create a Power of Attorney?
The best time is now — while you’re healthy and fully capable of making decisions. Waiting until it’s too late could mean your loved ones face unnecessary legal battles.
A power of attorney is a simple but powerful tool that ensures your financial and healthcare decisions are made by someone you trust if you can’t make them yourself. It provides peace of mind and prevents costly legal complications.
Ready to put a power of attorney in place? Our experienced estate planning attorneys can help you create a comprehensive plan to protect yourself and your family.