How Do Powers of Attorney Complement an Estate Plan?

Often when individuals consider estate plans, they think about planning for a person’s death. While the purpose of an estate plan is, to a large extent, to make a plan for disposing of assets following death, powers of attorney are an important element of an estate plan for the living. An experienced Illinois estate planning attorney can advise on how the power of attorney can work alongside the rest of your estate plan. 

What is a Durable Power of Attorney?

A durable power of attorney is an estate planning document through which an individual (known as the principal) can choose an agent to make personal, health, or financial decisions on their behalf under certain circumstances. Executing a power of attorney requires properly completing specific legal documents. The power of attorney will list all the duties that the agent will have, as well as the duration of the power. It is important to note that a power of attorney will terminate upon the death of the principal, at which point other estate planning documents such as trusts will come into effect. 

Types of Powers of Attorney 

There are two main types of powers of attorney. A healthcare power of attorney allows the agent to make healthcare decisions for the principal. A financial power of attorney enables the agent to make financial decisions for the principal and deal with finances.

Importance of Having a Power of Attorney 

By having both a comprehensive estate plan and a power of attorney in place, individuals and families can ensure that they protect their interests in the future with regard to multiple areas:

• Healthcare decisions and planning of incapacity: A power of attorney allows someone to make decisions regarding healthcare issues on someone else’s behalf. A power of attorney can make decisions on a person’s behalf if that person is physically or mentally incapacitated.
• Financial and property management: A power of attorney provides for someone to manage someone’s finances, including paying bills and managing investments, without interruption should that person be unable to manage them, whether temporarily or permanently. 

Contact Our Naperville, IL Estate Planning Lawyer

Creating an estate plan that includes a power of attorney protects the ones you love should you be unable to make decisions for yourself in the future. A Naperville, IL complex estate planning lawyer can help you navigate these documents and create an estate plan where every component works together to better protect your legacy. Contact the Gierach Law Firm at 630-228-9413 to schedule a consultation to discuss your estate planning needs.