Phoenix Power of Attorney
Why is a Power of Attorney (POA) a Necessary Part of An Estate Plan?
A Power of Attorney (POA) is a legal document that gives another person, known as an agent or attorney-in-fact, the authority to act on your behalf in financial and legal matters. A POA is an important part of an estate plan because it allows you to designate someone to make decisions on your behalf if you become incapacitated or otherwise unable to manage your affairs. An experienced estate planning attorney can help you determine which type of POA is best for your specific situation.
There are several types of POAs. A springing POA only becomes effective when you become incapacitated. A general and durable POA becomes effective when you sign it allowing your designated agent to act immediately as defined by the scope of the authority in the document. The authority granted by a POA can be limited or broad, depending on your specific needs and goals.
If you become incapacitated and do not have a POA in place, it may be necessary for a court to appoint a guardian or conservator to manage your affairs. This can be a lengthy and costly process that may not result in the appointment of someone you would have chosen. This process may also unreasonably delay the ability of your loved ones to act on your behalf to protect you or your finances.
A POA is an important tool for estate planning. For example, you may want to designate someone to manage your financial affairs or make healthcare decisions on your behalf if you become unable to do so. This can help to ensure that your wishes are carried out and that your assets are managed in the way you intend.
We can help you craft a POA to fit your estate planning needs. Let’s talk!