If you’ve spoken to any estate planning attorney or started research of your own, there’s a good chance that you’ve uncovered these two basic tools: a power of attorney and a last will.
Together, these documents form the foundation for your overall estate plan. However, they do not accomplish the same goals and a comprehensive estate plan should include both.
Your last will is a legal document that names who will take care of your estate (a “personal representative”) and who will inherit your assets after you pass away.
A power of attorney, however, is a legal document that enables another person (an “agent”) to make legal, financial or business decisions on your behalf. A power of attorney is crucial in the event that you become unable to manage your own affairs. The power of attorney is effective only during your life and stops being effective upon your passing.
Since they achieve different goals and protect you in distinct ways, you will most likely need both of these documents.
The power of attorney gives you a great deal of protection during your lifetime and allows for some flexibility based on situations in which you want that agent to step in and have control. However, the will provides for important protections after your death. Together, these two documents take a big picture look at your estate planning protections.
They are important and powerful and help to protect your family and empower you with peace of mind. Both of them can accomplish things that cannot be done through the other. Work with an estate planning attorney in Massachusetts who is familiar with your individual goals and wishes and can help point you in the right direction with your planning.
