When should adults consider drafting powers of attorney?

People in different circumstances require different estate planning documents. Wills and other testamentary instruments are important for those with valuable property and dependent family members. Advance directives discussing the possibility of incapacitation can also be important. Powers of attorney are among the most valuable estate planning documents. They can help protect adults who become incapacitated.

When is the addition of powers of attorney to an estate plan a smart decision?

When an adult is unmarried

Adults as young as 18 may want to consider drafting powers of attorney. Once teenagers become legal adults, their parents can no longer access their medical records or control their assets without written authorization.

Powers of attorney allow unmarried adults to designate trusted individuals to act on their behalf. Without a spouse, adults may not have anyone to pay their bills or make decisions about the medical treatment that they receive.

When an adult has unique needs

The decision to start a small business or professional practice creates a number of recurring obligations. If a small business owner becomes incapacitated and does not have a business partner or a spouse, powers of attorney can authorize a competent adult to manage basic business matters until they recover.

Those with mortgage obligations and other financial responsibilities may also benefit from drafting financial powers of attorney in case they become incapacitated. People with unusual medical preferences may also want to consider establishing powers of attorney. That way, there is someone to communicate their wishes and assert their preferences when they are incapacitated but in need of treatment.

Expanding an estate plan to include powers of attorney can be beneficial for people in many different situations. The right documents protect people in an emergency and give them greater peace of mind the rest of the time.