Does a power of attorney mean you have to give up your rights?

One document you may want to use in your estate plan is known as a power of attorney. This can typically be a financial or legal power of attorney, or you can use a medical power of attorney.

Either way, what you are doing is turning over the right to make certain decisions to someone else. This does mean that you give up some of those rights yourself. For instance, you use a medical power of attorney to pick an agent to make medical decisions on your behalf. With this in place, they can make the decisions that they believe are in your best interests, even though you would otherwise be the only person with the ability to make those decisions.

A springing power of attorney

Some people are worried about drafting these documents because they do not want to give up their rights, especially while they still feel they are in excellent health and can make all of their own choices.

But you do not have to worry about this conflict. You just have to draft a springing power of attorney that lists incapacitation as the reason that the power of attorney goes into effect in the first place.

This way, as long as you are still mentally competent and able to make your own decisions, the power to do so remains with you. No one else makes your medical or financial choices. But if something happens, such as a stroke that leaves you incapacitated or a reduced mental capacity due to Alzheimer’s, the power of attorney is already in place. It can spring into effect, and someone else can make decisions so that you get the appropriate medical care that you need.

It is important to understand exactly how to set up your estate plan and incorporate this type of documentation, so be sure you know what legal steps to take.