Powers Of Attorney: A Crucial Step In Kentucky Estate Planning
It may not be at the top of your list to create a power of attorney, but this legal step is a crucial tool in effective estate planning. At Cooper & Cooper Law Offices, PLLC, we have been helping individuals draft powers of attorney for more than 50 years.
Using simple tools, we are able to assist our clients in creating meaningful plans for their future generations. To ensure that you receive the health care and financial supervision you deserve, talk with an estate planning and elder law attorney from our firm.
What Is A Power Of Attorney?
A power of attorney is a legal document that allows you to designate a person to take over your estate in case of an emergency. If you become incapacitated for any reason, a durable power of attorney for health care can elect a loved one to oversee your final treatments. You can also include specific instructions for what type of health care you would like to receive.
The power of attorney can also be used to select an individual to maintain your finances if you are no longer able to. Creating a power of attorney is very beneficial for your loved ones, as it allows them peace of mind knowing that your wishes were honored. If you don’t have a medical or general power of attorney, there may be disputes between family members. They may argue over what type of treatment you would prefer, causing more stress and tension.
When Should I Create A Living Will Or Powers Of Attorney?
It’s never too soon to create either of these documents, as you can modify them throughout your lifetime. The risk is being caught without the powers of attorney or a living will. Tragic accidents happen every day and are nearly impossible to predict. If you want to eliminate stress and anxiety for loved ones, talk with an estate planning attorney about creating a power of attorney.
There are two types of documents that you should create for medical care purposes. A living will is a document you can use to designate what types of treatment you would prefer or wish to avoid. This gives them a detailed explanation to follow, legally binding them to fulfill your last wishes.
Without health care powers of attorney, either your medical provider or the court will oversee your final treatments.
The benefit of creating a durable power of attorney for your health care is that a loved one will have the legal power to enforce your medical treatments. If the doctors or medical providers fail to follow your directed wishes, they may have the right to take legal action.
Financial Power Of Attorney
A financial power of attorney gives an individual authority over your financial transactions. They are not given your finances but are responsible for using and monitoring them on your behalf. If you become incapacitated, you will need someone to be in charge of your financial affairs.
A general power of attorney may only allow for a single transaction, whereas a durable financial power of attorney will allow for more support.
The individual will be given as much control over your finances as you would like, which is why it’s important to choose a trustworthy agent. They may need to supervise your tax returns, pay monthly bills and monitor your investments.
The Difference Between Springing And Immediate Powers Of Attorney
When executing a power of attorney, one of the most important issues is deciding exactly when your agent has the authority to step in on your behalf. Depending on your personal comfort level and health status, you may choose between two options:
- Springing power of attorney: Springs into action only under specific conditions. For example, when a physician certifies that you have become incapacitated. It offers peace of mind if you do not want to relinquish control until absolutely necessary. However, it can cause delays while waiting for a diagnosis.
- Immediate power of attorney: Becomes effective the moment you sign the document. An immediate POA is efficient because it allows your agent to step in seamlessly during an emergency, avoiding bureaucracy. It requires a great deal of trust, though, since the agent holds authority while you are still healthy.
When making your choice, you should weigh the need for immediate convenience against your desire for a protective boundary.
Guardianship Vs. Power Of Attorney: Which Do I Need?
Both powers of attorney and guardianships allow one person to manage the affairs of another. However, each one is a distinctive legal arrangement:
- Power of attorney: A private, voluntary document that you can create while you are still of sound mind. You choose who will handle your finances, medical care and legal issues if you cannot do so yourself.
- Guardianship: An involuntary court process where a judge appoints a legal guardian for someone who has lost the capacity to make decisions for themselves. You may name a guardian for yourself in your estate plan, but you generally do not need one if you have a power of attorney.
Establishing a POA with an estate planning lawyer can avoid the costly court-supervised guardianship or conservatorship process in Kentucky. Without a POA, your family must petition the court to declare you legally disabled. By taking matters into your own hands now, you make sure that your future stays in your hands, not a judge’s.
What Is The Kentucky Uniform Power Of Attorney Act?
For a court to uphold your power of attorney, it needs to align with the Kentucky Uniform Power of Attorney Act, codified under Kentucky Revised Statutes (KRS) Chapter 457. Enacted to modernize estate planning across the Commonwealth, this legislation provides clear guidelines on how to execute, acknowledge and utilize POAs.
Crucially, the Act puts safeguards in place to protect the principal, or the person creating the power of attorney, from exploitation by their power of attorney, also called an agent. Under the law, agents must adhere to strict fiduciary duties. They have an obligation to act in good faith and in accordance with the principal’s best interests.
Protect Your Family With An Elizabethtown Power Of Attorney Lawyer
Both powers of attorney and living wills can be resourceful tools for your future care. If you would like to protect your future financial and medical care, contact Cooper & Cooper Law Offices, PLLC, today. We also offer a number of probate and estate planning-related services that you can find out on our site. Fill out a case evaluation form or call 270-561-6155 to discuss how we can help you.