Drafting a power of attorney can protect your assets and plans for the future despite any emergencies that may arise. At the same time, you should be aware of how powerful this document is and ensure you are making the right choices to keep yourself safe from fraudsters. A power of attorney allows another person to act on behalf of the document’s creator and make important decisions for them. While a general power of attorney may give that person the right to make all kinds of decisions, there are also specific powers of attorney such as those for finances or health care.
What to consider when drafting a power of attorney
While young, healthy people may see little need for a power of attorney document, it can be an important part of estate planning for anyone. After all, you cannot predict a sudden emergency that could leave a person incapacitated, unconscious or too severely injured to make decisions. Without a power of attorney in place, there could be a significant delay in managing the injured person’s financial affairs, and a next of kin could make health care decisions that the injured person would not support.
Of course, it is also important to be aware of the risks of a power of attorney. Fraudsters may try to convince people to give them general powers of attorney that are immediately valid. However, people can craft a power of attorney that goes into effect in case of incapacity and ensure that they choose a trusted person to manage their finances.
Powers of attorney can provide peace of mind for many people who want to ensure their affairs will be handled responsibly in case of emergency. An estate planning attorney may help people to draft these documents and protect themselves for the future.