There are many documents that people can include in a Texas estate plan. Frequently, their main priority is a testamentary instrument. People draft wills or establish trusts to provide support for their loved ones.
In some cases, they may also want to draft living documents that take effect in the event of an emergency. Powers of attorney are useful estate planning documents that can protect people if they become incapacitated but do not die. There are quite a few reasons why people may choose to add medical or financial powers of attorney to their estate plans. The following are among the most common.
To address medical concerns
Young professionals might need powers of attorney even before they have enough assets to require wills. Once they become legal adults, their parents can no longer make medical choices on their behalf. Any unmarried or divorced adult is at risk of receiving medical treatment that might violate their religious beliefs or personal preferences. Powers of attorney help ensure that a trustworthy person can make medical decisions on behalf of an individual who cannot communicate their wishes. Those experiencing significant medical issues, such as treatment for cancer, may also want to draft powers of attorney to ensure there is someone to act on their behalf.
To avoid financial hardship
Becoming incapacitated doesn’t just prevent people from communicating their medical wishes. It also stops them from running their businesses or paying their bills. Financial powers of attorney can authorize another adult to take responsibility for an individual’s financial matters while they are incapacitated. Particularly when an adult has no spouse and does not share their financial accounts with others, authorizing someone to manage economic matters can be of the utmost importance.
To avoid a loss of independence
People preparing for retirement may want to add durable powers of attorney to their estate plans. These documents protect them if they ever become permanently incapacitated. Those who experience dementia as they age, who develop severe mental health disorders or who sustain brain injuries might not ever be able to manage their own affairs again. Some powers of attorney may lose their authority in such scenarios. Durable documents help protect people from involuntary guardianship when they cannot act in their own best interests.
Understanding the purpose of different estate planning documents can help people optimize their protection. Individuals drafting or revising their estate plans may want to add powers of attorney as a means of protecting themselves from medical issues and financial hardship in the event of an emergency scenario.
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