No one really knows what will happen to us in the future. It’s always best to prepare. One of the aspects of the legal system that allows you to have a sense of preparation for future contingencies is through the advanced making of a Power of Attorney. This document is one wherein the principal or author, which is you, designates a particular person which you name as your agent or attorney-in-fact, to act and make decisions on your behalf, in case you can’t speak for yourself.
Here are the reasons why it’s best to have a special power attorney made:
1. There won’t be any stoppage in your business.
Suppose, for example, you meet a severe accident, or you suddenly have serious health issues that hinder you from running your business? You own a business on a sole proprietorship; hence you can’t just allow anyone other than yourself to sign documents, make payments, or continue the affairs of your business while you’re in the hospital. This situation will only make you even more stressed out, as you still recover.
If you had a power of attorney made beforehand, you could avoid stressors such as this, as, when you become incapacitated, there’s immediately someone else who can legally run and manage your business affairs while you recover.
You shouldn’t only make a power of attorney for incapacity, but even for the following instances, if applicable:
- When you’re going to travel for a long time, and you need someone to manage your affairs.
- When you’re going to be deployed to another country, as a part of your occupation, such as being a health worker, or a military man.
- When you’re nearing the age of retirement.
2. There won’t be guardianship proceedings for any of your minor children.
If something serious happens to you, and you have minor children left behind, naturally, the courts will take over and start a guardianship proceeding for your children. Not only is this going to be expensive, but it can also be stressful for your minor children to have to subject them unnecessarily to the proceedings of the law. When you have a power of attorney, wherein you also specifically dictate to whom you entrust the guardianship of children, court proceedings for the same will no longer have to be undertaken.
When you no longer have to take on guardianship proceedings, the estate planning procedures after your death become easier, and cheaper, too, as it’s one less matter that has to be carried out in court, apart from your wills and trusts.
3. There’s an assurance that your desires, wishes, and best interests are carried out.
The saddest thing that could happen after any contingency is that when you’re no longer able to carry out your wishes on your own, suddenly, the best interests of everyone in your family is no longer a priority. Whatever you had planned for your family, your business, your children, and all other essential aspects of your life may no longer be carried out as you wish, in your absence. It’s best, therefore, to be very prepared, particularly if you have the future of your children to protect. With a pre-made and well-prepared power of attorney, all these best interests of yours are met.
4. There’s a person legally and adequately named to take care of your well-being.
There may be incidents where you have to undergo medical care. If your mental faculties suffer, or extreme instances happen such as you lose your ability to think, speak, or relay thoughts and ideas, there’s no way for the medical team to decipher what kind of medical care or attention you desire for yourself. Hence, they’ll be forced to decide by themselves as to which care is best.
If you want to have more control over medical matters, you can lay these out to the person you have designated in your power of attorney. Even more importantly, having a well-made power of attorney can identify your trusted person to decide on the following financial decisions:
- In case of extremely expensive medical bills, what assets to sell, or how to manage them.
- Withdrawing and depositing money from your bank accounts for your medical care.
- Effectively carry out the terms and processes of your insurance.
These above-mentioned points only highlight in definite how important it is to have a Power of Attorney. This paper has been named as the most important legal document that almost every individual has to make at least once in their lifetime. In a sense, having a Power of Attorney made is like giving yourself a blanket of protection that should any emergency come to you that enables you to no longer act, think, and make decisions as you used to, everything you leave behind can be aptly managed by someone you have full trust and confidence in.