If you’re here, then you’re ready to do some estate planning.
You might just starting the process, trying to figure out exactly what kind of estate plan you need.
Or maybe you’re making necessary updates to you already existing estate plan as you enter a new life stage.
Regardless of what you already have in place (or not), if you don’t already have a power of attorney set up, then that should be your next step.
This is an often overlooked and misunderstood document that could save you and your loved ones a lot of stress when life serves up it’s favorite dish: the unexpected.
A quite note before we get started: a power of attorney document is not exclusively for estate planning. However, a successful estate plan always includes a power of attorney.
We’ll get into some non-estate planning situations in which a power of attorney is super important.
As always, this info is intended for general information purposes. Should you have specific questions or need advice on your own situation, then it’s best that you reach out to a licensed legal professional in your state!
What is a power of attorney?
A power of attorney grants a trusted person the authority to make legally binding decisions on your behalf.
In legal terms: A power of attorney is a legal document where one individual, the principal, grants another person, the agent or attorney-in-fact, the authority to act on their behalf in various legal, financial, or personal matters.
The document specifies the powers delegated by the principal to the agent, it outlines the scope of authority and responsibilities granted from the principal to the agent.
Let’s break that down:
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Principal: whoever writes the power of attorney.
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Agent: The person who is getting the authority, also known as the attorney-in-fact.
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Power of Attorney: The document itself which establishes who is in charge, when it goes into effect, how long it lasts, and when it ends.
