The idea of people using your money without your consent can feel like a major violation. However, this is what often happens during emergency situations when no power of attorney is in place.
Your decision to name a power of attorney as part of your estate plan can help you retain control of your finances even during emergencies.
Perhaps the most obvious benefit of a power of attorney is the ability to have control over what happens to your money. You can disclose to the person in that role, how you wish for them to handle your affairs. You can provide permission for your POA to sign various legal documents on your behalf, manage your property and even sell assets. According to U.S. News, if you move to a new state, you should update your POA to keep processes efficient and less confusing for those involved.
Neglecting to speak with your family and not choosing people to aid you in an emergency situation could lead to serious problems including disputes and theft. People may swarm in to assist you, but they might not have your best interest in mind. They might misuse your money or even steal your assets. Because of your incapacitation, you could remain completely unaware. The outcome could have devastating impacts on your estate and the people you care most about.
Establishing power of attorney is something your legal team can guide you through. Prior to naming someone, disclose your intentions and verify their willingness to fulfill those obligations. Your effort to plan ahead might make all the difference in your ability to protect what matters to you.