Prudent estate planning incudes drafting documents and planning for unexpected events besides distribution of property after a person dies. A power of attorney is recommended for the time when a person cannot make financial or medical decisions for themselves. Knowing what this document can do, however, is an important part of this planning.
A power of attorney document can help older adults and their families deal with future care. But, knowing what these documents can accomplish and their restrictions and is an important part of estate planning. A power of attorney allows the person granting the power, the "principal," to decide whom they trust to act on their behalf when they become incapacitated or unable to make decisions. That person is referred to as an "agent."
A power of attorney allows a trusted agent to step in to make health care or other important decisions. There are various ways to make this device more effective and provide better protection.
A power of attorney is an important estate planning document in Michigan. But, it has limitations and may not always be implemented quickly.
For the most part, our loved ones know us fairly well. They understand our interests, what we don't like and even our aspirations. But when it really comes down to it, do you feel like they really know you and what you would do in a given situation? This is what needs to be considered and addressed when drafting powers of attorney. Many individuals in Michigan and elsewhere are faced with the task of naming a loved one to make their financial and health decisions if they are deemed incompetent. This is anything but an easy task to complete.
As previously discussed, estate plans can include more than just a will. For this reason, everyone should understand the role powers of attorney can play, as they can be a crucial document to include in the estate planning process. While a power of attorney is a document full of potential that could protect the future health and financial needs of an individual, it is also a document that could have various pitfalls if not properly drafted and executed.
Whether we like it or not, we all age and will eventually die. While facing this reality is not always easy, especially when we are in our youth, we can take steps early on to prepare ourselves for elderly life. Because we never know when or if we will need temporary or long-term care at a nursing home, it is important to plan and prepare for this possibility from a financial perspective. In addition to getting your finances in order, it is also equally important to determine who you trust to make your financial and medical decisions if you are no longer able to make them for yourself.
Deciding to draft an estate plan is a major decision, but it is also a very useful and important step to take. No matter your age, individuals in Michigan and elsewhere should take the time to assess their situation and determine what is best for them later in life. Making end-of-life decisions is not easy for anyone, but it has become a necessary step to ensure our needs and interests are protected.