Durable Powers of Attorney are critical tools in every estate plan. A full estate plan does not focus only on what happens after death, but also on ensuring decisions can be made and finances managed while a person is still alive. Powers of Attorney can step in during these critical times in life to avoid court intervention and allow family members and close friends to step in and help a person at their most vulnerable state. That said, Powers of Attorney, if poorly drafted or left unchecked, can create problems that last long after the person is gone.
A Power of Attorney allows a person to act on your behalf to manage assets while you are alive, most commonly to make financial decisions. A Power of Attorney can be crafted to allow complete authority for that person to access and manage finances and other assets (such as real estate and personal property) or narrowly tailored to only allow specific decisions in specific circumstances. It can also be written to allow a person to act immediately or only become active if you are unable to make decisions yourself (such as instances of dementia, Alzheimer's or other cognitive declination, medical incapacity, or other circumstances that prevent a person from managing their own affairs).
Too often, Powers of Attorney are created in the moment of emergency or panic, and little thought is given to what it actually allows. This can later prove devastating to the person and their family. Whether because the Power of Attorney did not provide the necessary authority to manage assets for long-term care or access all accounts, was never made known to exist to those caring for the person, or even worse (as Dallin saw all too often when prosecuting criminal cases of financial exploitation of vulnerable and elder adults) was created by a bad actor under duress, a poorly written Power of Attorney can wreak havoc on a person's life and their family.
On the other hand, a well-crafted and particular Power of Attorney can avoid many problems down the road. Depending on whether a person requires assistance from another immediately or simply wants a check in place in case they cannot make decisions later in life, a Power of Attorney can anticipate many situations and provide the necessary authority to manage assets appropriately and with care. With attention to detail and the opportunity to consider without the pressures of an emergency hanging over you, a skilled estate planning attorney can help you consider all possibilities and secure a safe plan in the event you are unable to manage your own affairs.
Powers of Attorney go hand in hand with other tools in a complete estate plan. Together with all of the tools it can provide a secure and safe path for yours and your family's future.
