Aging comes with many challenges. As your body and health fluctuate, you may become more aware of how you want your loved ones to support your financial goals when a time comes that you cannot.
Creating a power of attorney can give you and your loved ones peace of mind. Although you may not want to consider a situation where you need a power of attorney, creating a plan for the future can make dealing with unpredictability simpler.
Here’s what you should know about how a power of attorney can support your goals.
What does a power of attorney do?
A power of attorney is a powerful document. It allows a person (agent) you choose to act on your behalf with your money and property. Once a power of attorney goes into effect, your agent can operate with or without your consent.
While you can revoke your power of attorney, you must be of sound mind. If you are no longer of sound mind, you will need the support of a court to remove the agent for acting improperly.
Choosing an agent
The person you choose as an agent must be someone you trust to make decisions you agree with when they cannot consult you. Your agent can make important financial decisions on your behalf, including making gifts. While many choose a loved one, you may want to consider someone who can be neutral when faced with a friend or family member who could take advantage of the situation.
When should I start the process?
Life can change very quickly. When you have a power of attorney, your agent can seamlessly support you and your family’s needs. Also, if your life or relationships change, you can modify a power of attorney already in place. However, if you suddenly cannot handle your financial affairs, it can be difficult for your loved ones to figure out what you want and how they can support you.
Creating a power of attorney can give you and your loved ones peace of mind when the needs arise. Your friends and family can be confident knowing what you want and how to support your goals.