Of the many important legal necessities that life requires, having a Will and Power of Attorney (POA) are perhaps some of the most important. Both documents serve essential purposes—the Will dictates the distribution of your assets after your passing and the POA grants another party the authority to act on your behalf in the event that you become incapacitated. Failing to have either one of these documents prepared can have drastically negative consequences for both you and your family. Listed below are several essential reasons why it is important to create a Will and POA.
Why Having a Will is Essential
Determines the Distribution of Your Assets
Creating a Will is the most efficient way to ensure that the right people receive your assets when you pass away. This includes tangible objects such as property, automobiles, and jewelry, as well as intellectual possessions like intellectual property or stocks. Without a Will, deciding asset distribution can take weeks, months, or even longer, and often goes through the court. Additionally, should you not spell out in writing the proper parties that should receive your assets, the court will create a plan of its own.
Protects Your Minor Children
If you have any children under the age of 18, it is important to create a Will to ensure they are taken care of after you pass away. In your Will, you will designate a guardian for your children in the event that their other parent is unavailable. Having guardianship determined ahead of time will eliminate any disputes between family members and ensure that your children will be provided for in the ways that you determine appropriate.
Communicates Your Wishes
When it comes to end-of-life planning, most people don’t think they can make crucial medical decisions for themselves. However, with a Will, you can communicate how you want yourself to be taken care of should you become incapacitated or ill. This includes instructions regarding end-of-life care, such as whether or not you want to be resuscitated and other issues regarding the donation of organs. If a competent adult cannot make those decisions for you, a Will serves as an opportunity for you to communicate your preferences.
Why Having a Power of Attorney is Essential
Provides Security in the Event of Incapacitation
A legal document known as a Power of Attorney (POA) can be created in your lifetime which grants another party (the “agent”) the authority to manage your affairs in the event that you become incapacitated or otherwise unable to make decisions for yourself. This document can range from being used for routine bank transactions or other matters to making legal decisions in court on your behalf. It is important to assign a trusted confidante in the event of such an emergency; otherwise, the expense of court involvement can be quite costly.
Allows you to Plan Ahead
Preparing a Power of Attorney can be a great way to plan ahead financially. The agent you choose will be able to access bank accounts, investments, and other financial documents to handle all transactions on your behalf, should the need arise. This allows you to plan your finances with a trusted person, preventing any outside access or court involvement in case of an emergency.
Enables you to Make Medical Decisions
Along with financial decisions, another power that a POA grants your chosen “agent” is the authority to make medical decisions for you should you become incapacitated or otherwise unable to make them for yourself. The agent you choose will have the power to make decisions concerning treatments and medications, and will have the responsibility of ensuring that any decisions are made in your best interest.
Although it can be uncomfortable and inconvenient to prepare either one of these documents, having a Will and Power of Attorney are essential if you want to ensure your wishes are followed and your assets are allocated correctly in the event of an emergency. Taking the time to create these necessary legal documents enables you to keep your assets and medical decisions private, and having both eliminates the risk of court or other outside influence. Preparing and updating both of these documents is one of the most important things you can do to protect your family and yourself.
