Understanding the Role of Power of Attorney in Estate Planning

Regardless of your age, estate planning is an essential part of preparing for the future. A comprehensive estate plan can help ensure that your affairs will be managed correctly and that your assets will be used and distributed according to your wishes. Powers of attorney (POA) are one important tool that may be used in your estate plan. These legal documents will grant someone else (your “agent”) the authority to act on your behalf in financial, legal, or medical matters. As you determine how to use powers of attorney, an experienced lawyer can provide guidance and ensure that these and other issues will be handled correctly.

Types of Power of Attorney

There are two general types of power of attorney documents that may be created under Illinois law:

• Power of attorney for property: Also known as a financial power of attorney, this document will give a trusted person the authority to manage your assets and finances if you are unable to do so. In some cases, this type of power of attorney may be created on a temporary basis, such as to give someone the authority to sign legal documents on your behalf during a financial transaction. You may also create a power of attorney that will give a family member the ability to manage your finances if you become incapacitated or need assistance in the future.
• Power of attorney for healthcare: Also known as a medical power of attorney, this document designates someone to make medical decisions for you if you are unable to do so yourself. They will work closely with your healthcare providers and ensure that your wishes regarding treatment options are followed.

In most cases, powers of attorney will be “durable,” meaning that an agreement will continue to be valid if you should become incapacitated or cannot express your desires or make decisions on your own. This can ensure that a family member or another trusted person will be able to handle medical or financial issues for you, regardless of your mental or physical status.

The Importance of Having a Power of Attorney

Powers of attorney can be beneficial in a variety of situations. They can:

• Ensure your wishes are respected: By appointing someone you trust as your agent, you can ensure that they understand your wishes and will follow your instructions even if you are unable to communicate what you want due to incapacitation.
• Avoid court intervention: Without a power of attorney in place, the court may need to appoint a guardian to manage your personal, medical, and/or financial affairs if you become incapacitated. This process can be time-consuming, expensive, and may not align with your preferences.
• Prevent financial problems: A power of attorney allows you to choose who will handle financial matters if you cannot do so yourself. This ensures that bills will be paid on time, investments will be managed properly, and other financial obligations will be met.
• Protect your well-being: With a healthcare power of attorney in place, you can designate someone who understands your medical preferences and values to make important healthcare decisions on your behalf.

Contact Our DuPage County Estate Planning Lawyer for Powers of Attorney 

If you have questions about power of attorney or need assistance with other estate planning issues, the Gierach Law Firm can provide the legal help you need. Our Naperville estate planning attorney understands the importance of protecting your assets and ensuring that medical issues will be addressed correctly. Contact us today at 630-228-9413 to schedule a consultation and learn more about how we can help you incorporate powers of attorney into your estate plan.