Managing your estate isn’t just about planning for the distant future; it’s about ensuring that your affairs are in order, no matter what life throws at you. Life is unpredictable so you’ll want to take steps to ensure your loved ones do not face hardship when you are unable to make decisions or pass.
A durable power of attorney (DPOA) provides peace of mind, knowing that someone you trust will be able to manage your financial and legal matters if you’re ever unable to do so yourself.
What is a Durable Power of Attorney?
Let’s start with the basics. A durable power of attorney is a legal document that gives someone else the authority to make decisions on your behalf. This can include anything from paying your bills and managing your investments to making sure your taxes are filed. The keyword (and most important word ) here is “durable,” which means that this power remains in effect even if you become incapacitated and can’t make decisions for yourself. It’s unalterable.
A durable power of attorney is different from a regular power of attorney. With a simple power of attorney, power can be lost if you become incapacitated.
Why is a Durable Power of Attorney Important?
Imagine this scenario: You’re in an accident or fall seriously ill, and you’re suddenly unable to manage your affairs. Without a durable power of attorney, your loved ones might need to go through a lengthy and potentially expensive court process to gain the authority to handle your finances. This can add stress and delay at a time when quick decisions might be crucial.
With a Durable Power of Attorney in place, the person you’ve chosen—called your “agent” or “attorney-in-fact”—can step in immediately to manage your estate. They can pay your bills, manage your bank accounts, make investment decisions, and take care of any other financial matters that need attention. This ensures that your financial life remains stable, even if you’re not in a position to oversee it yourself.
How Does It Work?
Setting up a Durable Power of Attorney is pretty straightforward. You’ll work with an estate planning attorney to draft the document, specifying exactly what powers you want to give your agent. This can be as broad or as specific as you like. For example, you might give your agent the power to manage all of your financial affairs, or you might limit their authority to certain tasks, like managing real estate or making healthcare decisions.
One important thing to consider is when you want the Durable Power of Attorney to take effect. It can be “springing,” meaning it only goes into effect if you become incapacitated, or it can be effective immediately, allowing your agent to act on your behalf at any time. There are pros and cons to each approach, and your attorney can help you decide what makes the most sense for your situation.
Choosing the Right Person as Your DPOA
Choosing the right person is perhaps the biggest decision you’ll make when setting up a durable power of attorney. You need someone who is not only trustworthy but also capable of handling potentially complex financial decisions.
Remember, the person you pick will have significant control over your assets, so you must have confidence in their judgment and feel at ease with their decisions.
Many people choose a close family member, like a spouse or adult child, but it could also be a trusted friend or professional advisor. Honestly, it’s up to you who you pick and who you feel the most comfortable with handling your affairs.
Whoever you choose, make sure to have an honest conversation with them about what the role entails and ensure they’re comfortable with the responsibility.
Benefits of Having a Durable Power of Attorney
Having a Durable Power of Attorney in place offers several benefits:
You can rest easy knowing that your financial affairs will be managed if you’re unable to do so yourself.
Without a DPOA, your loved ones might need to go to court to obtain the authority to manage your finances. This process can be time-consuming and costly and also cause huge amounts of stress.
A durable power of attorney is customizable to your specific needs, giving the person you choose as much or as little authority as you feel comfortable with.
In the event of an emergency, your power of attorney choice can act quickly to manage your estate, ensuring that bills are paid, investments are managed, and your financial life stays on track.
Conclusion: Why You Shouldn’t Wait
Estate planning is often something people put off, but setting up a durable power of attorney is a simple step that can have profound implications for your future. It’s about more than just money—it’s about making sure your wishes are respected and your loved ones are protected if something happens to you.
If you haven’t yet created a durable power of attorney, now is the time to consider it. Talk to an estate planning attorney to learn more about how this powerful document can help you manage your estate effectively and give you peace of mind for the years ahead.
Don’t leave your future to chance. Contact the Law Office of Andrew Fesler today to set up a durable power of attorney. Let us guide you through the process, so you can protect your assets and provide peace of mind for yourself and your loved ones. Reach out now to secure your future.
