During the estate planning process, many people will focus on the legacy they will leave behind and how they can use their assets to provide for their loved ones. However, an estate plan can also address how certain matters will be handled during a person’s lifetime, including how their assets will be managed and how their medical treatment will be handled as they get older. Making decisions about these issues can be especially important for elderly adults, and a person will want to make sure their needs will be met and their wishes will be followed, no matter what happens. One of the best ways of doing so is to create durable powers of attorney.
What Is a Durable Power of Attorney?
As a person gets older, or if they encounter a situation where they need assistance from others, they can create powers of attorney and name a person they trust who will be able to make certain decisions for them. When a person creates this type of legal agreement, they will name an “agent” who is authorized to make decisions on their behalf. The agent may be a family member or close friend, and the person may grant their agent broad authority to do what they believe is best, or they may provide specific instructions for how certain issues should be handled.
Powers of attorney come in two types. A power of attorney for health care will address medical and personal issues, and an agent may be given the authority to make decisions about the types of medical treatment that will or will not be provided in certain situations, as well as whether the person will be admitted to a hospital, mental health facility, or nursing home. A power of attorney for property or finances will address issues related to a person’s money and assets, and an agent may be given authority to manage the person’s finances, pay expenses, apply for benefits, conduct business transactions, or make investment decisions.
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