Many people prioritize efficiency and affordability when they’re estate planning. However, they may have the wrong perspective which leaves them with inadequate protection. Estate planning is a crucial process for the benefit of not just the testator drafting documents but also the people closest to them.
Obviously, the creation of a will is important for the protection of dependent family members and the establishment of a positive long-term legacy. For those with complex family situations, high-value assets or other complicating circumstances, a trust may also be a smart addition to an estate plan.
Others may benefit from establishing documents that take effect while they are still alive. Specifically, they may want to consider drafting powers of attorney in case they experience an incapacitating personal emergency. The following are common reasons why people may be motivated to give others legal authority over their finances or medical care.
The absence of other forms of support
Minor children have parents to manage their resources and guide the healthcare support that they receive in an emergency. After people turn 18, their parents can no longer access their financial resources or medical information without explicit permission to do so.
The only person who has the automatic right to access resources and medical records is the spouse of an incapacitated individual. However, not everyone has a spouse. Those who have never married and those who have divorced may not have someone to act on their behalf in an emergency.
People with spouses can also experience an emergency at the same time that their spouse does, such as when a car crash occurs. Powers of attorney help ensure that people have someone they trust to help them in an emergency.
The presence of specialized support needs
Some people have unique medical preferences because of their health challenges or religion. Others may have assets ranging from rental properties to small businesses that require the care of an experienced professional to manage.
By naming a specific agent or attorney-in-fact to handle financial matters or advocate for someone during a medical emergency, they can avoid scenarios in which their loved ones cannot fulfill their financial and medical support needs. People have the option of establishing medical and financial powers of attorney that can designate trusted individuals to act on their behalf.
At the end of the day, drafting appropriate estate planning documents can protect people in emergencies and give them peace of mind as they go about their daily lives.