When you think of creating an estate plan, you likely imagine writing a will or outlining your final wishes. While these tasks are certainly important and beneficial, they’re not the only thing your estate plan should include. You’ll also want to create provisions for a power of attorney (POA) to manage your affairs if you’re unable to do so yourself. Your Illinois estate planning attorney can help you with the necessary documentation, but before you appoint someone, you need to understand what a POA is and how it works.
What Is a Power of Attorney?
A POA is a legal agreement that appoints a trusted individual to represent your interests and act on your behalf if you’re unable to represent yourself. These agreements typically take effect if you’re injured and unable to make decisions or are facing a disability that impedes your ability to control your estate, finances, or medical decisions.
These agreements remain in effect until:
- The individual loses the mental ability to act on your behalf.
- The court deems the agreement invalid.
- The appointed individual passes away.
- The appointed individual refuses to adhere to the POA agreement.
The goal of a POA is to ensure that your wishes are honored and that you have someone you trust on hand to make important decisions if you’re unable to do so.
The Two Main Types of POAs
There are many types of POA agreements you can use to fully protect your interests. However, there are two key types that almost anyone creating an estate plan can benefit from including.
Medical Power of Attorney
A medical power of attorney gives someone you trust the ability to make important decisions regarding your medical care if you’re incapacitated or otherwise incapable of making decisions yourself. The goal of this type of POA is to choose an individual who will honor your wishes and make the same types of decisions that you would yourself.
Financial Power of Attorney
A financial power of attorney gives a trusted person the ability to make decisions regarding your finances if you’re incapacitated. They should make the same types of decisions that you would. The purpose of a financial POA is to ensure that your finances are managed consistently and in a way that aligns with your values even if you’re not making the decisions.
How to Establish a Power of Attorney
Establishing a POA is simple. Just follow these steps:
- Choose someone you trust. This can be a sibling, close personal friend, spouse, child, or even your attorney in some cases. Just make sure that the individual you choose agrees to have power of attorney and is likely to make decisions regarding your care and your estate that align with your values and the types of decisions you’d make.
- Put the agreement in writing. A POA is a legally binding agreement, but it needs to be in writing to take effect. Your Illinois estate planning attorney will be able to draw up the necessary paperwork and help you fill it out accurately.
- Be specific in the agreement. You’ll want to detail the powers your trusted individual has. The permissions can be as broad or as specific as you deem appropriate. Not sure where to start? Your attorney can guide you.
If you’re interested in adding a POA to your estate plan, schedule a consultation with your estate planning attorney.
Let Your Illinois Estate Planning Attorney Help With Your POA
Establishing a power of attorney can make it easier to ensure that your wishes are honored even if you’re unable to make decisions. If you’re interested in adding a POA to your estate plan, schedule a consultation with the team at Legacy and Life Law Firm. Our experienced estate planning attorneys can help you get your POA set up correctly. Contact us today to schedule an appointment.