Estate Planning Essentials - The Durable Power of Attorney
A Durable Power of Attorney is the best way to ensure your affairs are managed if you become incapacitated or disabled. A durable power of attorney will either become effective when you are incapacitated or remain in effect after incapacitation depending on how it’s written. Once the durable power of attorney becomes effective, the person appointed to act for you, called an attorney-in-fact, is allowed to pay bills, invest assets, file tax returns and sign contracts among other things. You should also include language so health care decisions can be made when you are unable to communicate. You may want to inform the attorney-in-fact what, if any, medical treatment you want administered at the end of your life. If you do not have a power of attorney, a guardianship proceeding may be necessary to appoint someone to manage your affairs. These proceedings can be long and costly so a well drafted power of attorney is definitely worthwhile.
