As you work on your estate plan, one area to consider may be using a power of attorney. There could come a time when someone else needs to make medical, financial or legal decisions on your behalf. A power of attorney allows you to choose your agent in advance to handle these responsibilities if needed.
That being said, you may not want to immediately give them the right to make these decisions when drafting your estate plan. For example, if you designate your firstborn child to make medical decisions for you, does that mean they can start doing so right away?
Taking action after incapacitation
One way to address this concern is by using a springing power of attorney. This type of power of attorney only takes effect under certain circumstances, which you can define in advance. Most often, people want another person to take over the decision-making role only if they become incapacitated. In this case, an official diagnosis of incapacitation would trigger the power of attorney.
For instance, you may be worried about the medical care you would receive after having a stroke. However, the stroke may leave you unable to communicate with your medical team while you recover.
By using a springing power of attorney, you can choose a trusted person to make medical decisions only if the stroke results in incapacitation. Their legal authority to act on your behalf only begins once those conditions are met, so you don’t have to worry about losing control of your decisions ahead of time.
Drafting an estate plan
A power of attorney is just one part of an estate plan that you may want to consider. Be sure to carefully review all of your legal options to create a plan that best fits your needs.