3 Benefits of Having a Power of Attorney

A power of attorney is a legal document that gives another person power to make financial or legal decisions on your behalf. It comes in two forms: durable and springing. Our office normally recommends that our clients prepare a durable power of attorney as a springing power of attorney can prove difficult to execute as it relies upon a certain set of facts in order to become operable. Both options provide numerous personal and legal benefits, including the ones listed below.

1. Maintain Control

Whether you're incapacitated or want to take a step back, the power of attorney allows you to set clear instructions. You can create a full outline of what decisions need to be made and what steps to follow. This detailed guide eliminates questions and second-guessing since it makes your wishes very clear. You also have full control over who makes these decisions on your behalf, providing peace of mind that a trustworthy individual is in charge and will follow your directions.

2. Create a Talking Point

It's not always easy to have conversations with loved ones about topics related to aging, illness, or even death. However, the document provides an excuse to review your wishes so that loved ones are aware and know what to expect, which can prevent challenges in the future.

It also serves as an opportunity to let them know who you've chosen to make decisions. This advantage allows you to explain your reasoning and answer questions.

3. Protect Assets & Finances

Even if you become incapacitated, bills will still come through. A power of attorney ensures the chosen individual has the authority to make payments, including mortgage and medical bills. Maintaining these items prevents fines and the risk of collections and repossessions.

The arrangement also gives the agent power to file paperwork for benefits, like Social Security and Medicare. They can also transfer assets to beneficiaries or a trust to meet eligibility requirements for public benefits.

4. The Grantor Maintains Control Over All Assets

Most importantly, the person granting the power of attorney to a third party or agent maintains control over all their assets. Moreover, the power of attorney can be revoked at any time by the grantor. Finally, it's an additional step in simplifying your financial affairs so that your children will not have to petition the court in order for them to handle your financial affairs and save your family considerable money.