Many people don’t think of assigning a Power of Attorney (POA) when they think of estate planning. However, a POA can be a critical part of your estate plan when handled correctly. While they aren’t right for everyone, it is beneficial to take the time to explore the different types of POAs so you can make the decision for yourself.
Durable Power of Attorney
The most common type of POA in estate planning is the Durable Power of Attorney. These POAs give your assigned agent the power to act on your behalf even if you become incapacitated or otherwise unable to make your own decisions. It is essential to create a durable POA in regards to your estate plan because other types of POAs become invalid the moment you become incapacitated. In your estate plan, you want to ensure that someone is there to handle your financial and medical needs when you’re no longer able to do so by yourself. Without a POA, your finances and medical care may be left up to the court, who may create a conservatorship. However, when you already have created a durable POA, you can make sure that your values and wishes are honored.
Medical
A medical POA is someone assigned to make medical decisions for you. That person can act as your health care proxy, and it’s important to inform them of how you want your medical care handled. They can choose your doctors, make decisions to hire caretakers, and handle decisions regarding surgeries or other major medical events. Adding a durable power of attorney for health care is a big decision, and you may wish to have one in place in the event of a serious medical condition or unexpected car accident. A medical POA might be the right addition to your living will to handle your health care decisions.
Financial
Assigning a financial POA is important if you want someone to be able to make financial decisions for you if you’re no longer able to do it yourself. In the document, you can specify how you want your POA to handle your finances and the scope of their duties. With a POA for finances in place, you’ll have someone you can trust to pay your bills, file taxes, and even make business decisions. Your financial POA can help you keep your finances in order and sign legal documents on your behalf. It can be beneficial to create a financial POA to keep the court out of your affairs by allowing you to set up a plan for your future.
Contact an Arkansas Estate Planning Attorney
Do you have questions about adding a POA to your estate plan? You can schedule a consultation to discuss your options with a knowledgeable estate planning attorney at L. Jennings Law. We understand Arkansas laws surrounding estate planning and can help you decide if adding a POA to your estate plan is the right decision for you. With experience handling estates of all sizes and types, we can help you create a custom estate plan that honors your wishes. Contact us today to set up a free consultation.
