Incapacity Planning with A Power of Attorney
Incapacity is generally defined as an inability to make financial or medical decisions for oneself. When someone can no longer make these decisions, someone else steps in to make the decisions. In most circumstances, this person is either a Guardian or a person granted a Power of Attorney.
Guardians are appointed through the Guardianship process. This Court process can be complicated and become a burden on finances and the guardian’s time. Each year the Guardian must file a report with District Court.
By executing a Power of Attorney, a person can control who will make decisions on their behalf and avoid Guardianship proceedings. Power of Attorneys can either relate to medical decisions, financial decisions, or both financial and medical decisions. Most Power of Attorneys are setup to only be effective once incapacity has occurred. These Power of Attorneys are called Springing Durable Power of Attorneys. It is important to fully understand when and how a Power of Attorney comes into effect.
If you are interested in learning about a Power of Attorney or other incapacity planning options, contact Elwell & Spain today to schedule a free consultation.