One of the most important steps in the estate planning process is deciding who will make financial decisions on your behalf if you can’t. But this process, including power of attorney creation, can be easily overlooked.
Most people are familiar with the fact that the estate planning process is used to help distribute your assets to your loved ones and beneficiaries.
While this is certainly a worthwhile goal that belongs in your comprehensive estate plan, don’t neglect the importance of a trusted decision maker to help during your lifetime. If you are unable to take care of yourself or make decisions on your behalf, you need to use tools such as a power of attorney and potentially a trust to enable someone else to manage these assets for you.
If you are unreachable due to travel or other circumstances, or incapacitated, a revocable or living trust can hold assets for your benefit while you are still alive. This trust can also be used to name the people you want to receive your property after you pass away. In addition to using a trust, a durable power of attorney establishes a person to act on your behalf with legal and financial matters (for assets in your name) if you become mentally or physically disabled.
This means that decisions still made in your best interests can be carried out even after something happens to you. Schedule a consultation with an estate planning lawyer to talk about how a health care proxy, power of attorney, and trust can all be used to help articulate the goal that you wish to receive and who is able to help make these decisions on your behalf.
