As we age, the reality of not being able to handle our own affairs due to sudden or long term illness becomes something to seriously consider. To ensure that your affairs are taken care of in times like this, you need to have someone who will be willing to handle them for you. This is where power of attorney comes in.
Who Should be named Power of Attorney?
Who should be your power of attorney? Obviously someone you trust. This is a person who is going to be able to act in your best interests when you are unable to. What this means specifically can depend on the type of power of attorney that is granted.
Choosing family or friends usually means there is no associated fee, but in cases where a lawyer or bank is chosen, they will charge accordingly.
Types of Power of Attorney
When speaking of estate planning there are really two main types of power of attorney:
- Springing Power of Attorney: This only goes into effect when you specify it. Typically situations like incapacitating illness. In order for your agent to act, they may need to provide documentation of this condition.
- Durable Power of Attorney: This takes effect immediately. No documentation is needed to prove your agent is able to act in your stead.
Naming power of attorney is critical in making sure you can be taken care of when you most need it. Speak with your lawyer today about setting up power of attorney.
