There are many things that adults need to do to ensure that they have their affairs in order. Many understand that creating an estate plan is critical, but there’s more to think about than just determining who’s going to get what when you pass away.
You have to set up a plan for making sure that someone can handle your finances and make medical care decisions for you. Doing this requires you to set up power of attorney designations. These are important not just in end-of-life situations but also situations where you’re temporarily incapacitated due to illness or injury.
Who should you name as the power of attorney?
You can appoint the same person to take care of your health care decisions and your finances, but that’s not required. You can choose someone different for each one of those. Be sure that the person you choose can make decisions based on what’s in your best interests. They should be able to put their own feelings aside and do what you would have done if you were able to decide for yourself.
The person who makes health care decisions for you will work with your medical team to make any decisions that aren’t covered by the advanced directives you have in place. The person who has the financial power of attorney will be able to pay your bills, sell or purchase assets in your name, and handle all other money-related matters for you.
Your estate plan should tell your loved ones everything they need to know about your assets after you pass away. It also needs to include information about what should happen if you’re incapacitated. Getting this all in place as quickly as possible can help you to have some peace of mind about the potential future.