A power of attorney is key to protecting your financial interests.
There are so many ways to lose money.
You can physically use your wallet.
You can be taken by a scam.
You could become incapacitated today through illness or injury.
According to a recent The Street article titled “Guide to Protect Your Assets as You Age – Power of Attorneys,” you can take steps to protect your finances from the negative consequences of sudden incapacity.
What does it recommend?
You should not take action alone.
You should work with an experienced estate planning attorney.
This professional will be able to draw up power of attorney documents for you.
What is the purpose of a power of attorney?
A power of attorney allows you to give authority to an agent to make decisions on your behalf if you are unable to do so yourself.
You will need one power of attorney for your finances and one for your health care decisions.
With COVID-19, many adult Americans without these documents have been placed in difficult situations.
If you do not yet have your powers of attorney in place, you should do so as soon as possible.
Not all powers of attorney are the same.
Some grant general authority,
Others only grant authority to an agent for specific purposes.
You will want to ensure your power of attorney grants enough authority to your agent to protect your financial and healthcare interests.
Discuss your goals with an experienced estate planning attorney to ensure you and your loved ones are protected should you become incapacitated.
Reference: The Street (Sep. 24, 2020) “Guide to Protect Your Assets as You Age – Power of Attorneys”