Estate planning can involve a variety of different types of documents. Wills are arguably the most common estate planning instrument, but they are far from the only documents people may need.
Some people establish trusts. Others create advance directions that take effect while they are alive. Powers of attorney are relatively common. They allow the principal drafting the document to empower someone they trust to make medical decisions or handle financial matters on their behalf.
What inspires many adults to create documents granting someone else authority over their lives?
Medical challenges
Powers of attorney are frequently necessary in cases where people face major medical issues, such as cancer. If they become incapacitated due to the progression of a medical issue or the impact of the treatment they must undergo, the agent or attorney-in-fact that they selected can manage their affairs until they recover or they die.
Major responsibilities
Perhaps an individual has a mortgage or runs a professional practice. Maybe they have family members who rely on them. They may need to empower someone else to manage their affairs or take control of their medical circumstances to keep the pressure off their loved ones.
Advanced age
Durable powers of attorney are popular among those preparing for retirement. Should an older adult develop dementia or become permanently incapacitated, the person they chose can help manage their affairs and act in their best interests. Powers of attorney can be useful for people of all ages, including those who don’t yet have a pressing need for protection.
No one ever knows when they might experience a medical emergency, making powers of attorney valuable in almost any personal situation. Creating an estate plan gives people protection from unpredictable circumstances and often grants them greater peace of mind as they go about their daily lives.