Many people make wills, but you’re young, so why would you need one? You may not believe you’ll have many assets for another five to ten years, so you may not think there’s any reason to make a will now. These legal documents aren’t just about asset distribution, however.
One of the many things in wills, besides asset distribution and executor of an estate, that isn’t often talked about are powers of attorney (POA). A power of attorney helps make decisions on your behalf. You may not have just one power of attorney, however – here’s what you should know:
1. Medical power of attorney
A medical power of attorney will make decisions for you if you’re ever incapacitated and require surgery, treatment or end-of-life care. Your medical POA will make decisions when, and only when, you face a medical crisis and you’re unable to make decisions on your own.
2. Financial power of attorney
Your financial power of attorney will have a say over how your finances are used when you’re unavailable to make decisions. This could mean your assets are used as a result of undergoing medical treatment.
3. General power of attorney
Most people can be your POA – as long as they’re 18 years of age or older. Deciding who has the responsibility over your life and expenses can be difficult. Many people decide on one person who takes on both medical and financial POA roles – commonly known as a general power of attorney.
4. Springing power of attorney
Power of attorney can also be a limited role. Some people may delegate a person to take on a springing (or limited) POA when making financial decisions (such as buying a house) when they aren’t around (like military personnel who are overseas) to finalize a purchase.
You shouldn’t wait to make a will because you don’t believe you need one yet. You may need to reach out to legal help who can answer your questions.