Commonly, a will is used for the assessment, care and distribution of an estate. A will is generally thought of as a legal document that’s needed when people meet the late stages of their lives. Because of this view, many people 30 years of age and up to 50 years of age put off making their will.
A will can do so much more than plan out someone’s estate and prepare their family for their passing. In fact, your will could be beneficial while you’re still alive. Here’s how estate planning is used to help protect your future and the future of your family:
Designating your power of attorney
Your estate plan may have a power of attorney (POA). You can name someone you trust as your POA to manage your health and finances if you’re incapacitated. You can split a POA is into two parts:
- Financial POA: This position may handle anything to do with your income or savings. A financial POA may help pay rent, debt bills, taxes, etc. In special cases, this position may make investment purchases while you’re away on a trip.
- Medical POA: This position handles any health concerns, typically after a serious accident or sudden medical condition. A medical POA may decide your medication intake, surgery, etc.
While you may have separate people to handle your financial and medical decisions, you may also have one person designated as a general power of attorney. A general POA handles any financial and medical decisions.
If you’re making your estate plans, you may need to reach out for legal help to know your options. Every plan is unique, and you can make sure your estate plans best serve your goals.