At some point in your life, you’ll plan your estate. Most people plan their estate later in life when they have more assets to consider distributing, which can discourage younger people from creating a will. Yet, wills aren’t just about asset distribution.
You’ll have to decide who becomes your power of attorney when creating a will. There are three types of powers of attorney (POA) you’ll have to consider:
Financial POA is a role taken when someone is unable to make decisions for themself regarding financial matters. A financial POA may stand in to help someone pay rent or medical bills while they are incapacitated.
Financial POA is often a temporary position considered a springing POA. A springing POA is active at the instance someone is delegated as a POA. People often assign a springing POA when there is a financial deal that they can’t immediately make at that moment.
Much like a financial POA, a medical POA will make medical decisions for someone who is incapacitated or aren’t in the right mental state to make choices. Your medical POA may have to decide if you were to undergo surgery, medical treatment or end-of-life care on your behalf.
A medical POA is also a temporary role that only becomes active if you face a medical crisis.
A medical POA and financial POA don’t have to be different people as this can make it harder to choose your POA. Some people consider assigning a general POA who will cover both medical and financial decisions.
You may even have the choice of making your POA durable or non-durable. These choices decide how long your POA can make decisions on your behalf. If you’re planning your estate, you may need to know your options. Knowing your will is in order could help you in the future.