Using a Durable Power of Attorney to Plan for Incapacity
Estate planning often focuses on what happens after death, but a complete plan also addresses what happens if you are alive but unable to make decisions for yourself. A general durable power of attorney is an integral part of any estate plan; without it, a medical crisis or cognitive decline can leave your affairs in limbo.
Durable and Medical Powers of Attorney
A power of attorney is a document that allows you to choose another person to legally act on your behalf. This person is referred to as an attorney-in-fact. While there can be many instances in which a person may sign a power of attorney document, two are routinely used in estate planning.
A financial power of attorney, called a general durable power of attorney, grants your attorney-in-fact authority to pay bills, manage bank accounts and investments, and generally handle your financial affairs and benefits to which you are entitled. A durable power of attorney is designed to remain in effect even if you become incapacitated in the future.
A healthcare power of attorney, called an advance directive, allows your attorney-in-fact to make medical decisions on your behalf and make other decisions with regard to your person.
Common Questions About Durable Powers Of Attorney In Indiana
Q: Do I really need a durable power of attorney?
A: Yes. A durable power of attorney and advance directive are usually the simplest estate planning documents we prepare for clients. These documents give you a say in who manages your financial and medical affairs if you cannot. They allow your attorney-in-fact to help you while preserving your legal rights to manage your own affairs as long as you can.
Without a power of attorney, you may be faced with a situation where there is no one with the legal authority to pay your bills, access your bank account, or make any medical decisions for you. This can lead to your loved ones pursuing guardianship through the court system, a process which can be lengthy, expensive, and necessitates court oversight. Sometimes guardianship proceedings cause disputes and lasting rifts between family members who disagree about who should be in charge of your affairs.
Putting a power of attorney in place ahead of time is an inexpensive way to ensure the person you choose will manage your affairs if you cannot.
Q: When does a power of attorney take effect?
A: A durable power of attorney can take effect immediately when you sign it or only after the occurrence of a specific event, typically when your doctor certifies in writing that you are incapacitated. Our attorneys can discuss your options to help you make the right decision for your circumstances.
Q: Can I change or revoke my power of attorney later?
A: Yes, you can revoke or update a power of attorney document at any point in your life as long as you have the mental competency to do so.
Protect Your Future
Planning ahead is one of the most helpful things you can do for your family. Parr Richey can help you draft a new durable power of attorney or review your existing plan with you.
Call our Indianapolis office at 317-269-2509 or contact us online to discuss preparing your durable power of attorney and other estate planning documents.