As people prepare for retirement, they need to think about the future. The end of a career may inspire a successful professional to draft a will as part of an estate plan. They want to ensure the right people inherit their assets.
People may also need to plan for the possibility of their health declining as they age. There are several different advance directives or living documents that people can add to their estate plans to enhance their protection later in life. Durable powers of attorney are of the utmost importance for those on the edge of their golden years, especially if medical issues, such as Alzheimer’s disease, run in their families.
What does a durable power of attorney do?
Powers of attorney in general designate attorneys-in-fact or agents to manage a person’s affairs. Many people experiencing medical issues draft medical powers of attorney and possibly financial powers of attorney in case something goes wrong with their treatment.
Standard powers of attorney lose their authority when a person recovers or dies. The courts can also set the document aside when the principal who drafted it becomes permanently incapacitated.
Those who are likely to be reliant on others indefinitely may not have the protection they expected from their standard powers of attorney. Durable powers of attorney include special language that addresses this exact scenario.
The document remains effective even when the person who drafted it becomes permanently incapacitated. Instead of family members going to court in pursuit of a guardianship, the agent nominated in the documents can manage the incapacitated person’s financial affairs and medical care.
At the end of the day, older adults who plan in advance for unpredictable circumstances by drafting durable powers of attorney can protect themselves and take pressure off the people closest to them in stressful situations.