Most people take being able to handle their finances for granted. You may never have thought about what would happen if you become incapacitated and unable to make financial decisions for yourself. There’s a chance that your bills go unpaid and that other financial obligations might fall by the wayside.
One way that you can prevent this from occurring is to set up a financial power of attorney. You can get this done so the person you name could handle the financial decisions for you if you’re incapacitated.
What can the person do on your behalf?
The person you name can do anything that you’d do. They can sell or purchase assets and pay your bills. They can take care of investments. It’s possible to set limits on this, but you must do so carefully. The person you name should be able to make decisions according to what’s best for you and based on how you’d handle the situation if you were able to.
The power that this person has expires when you pass away. At that point, the financial decisions will go to the person you named to preside over your estate. In some cases, this might be the same person so those duties would simply continue.
Making sure that you have a comprehensive estate plan can give you peace of mind. Your loved ones will know your wishes when you’re unable to relay those to them verbally. Getting all the documentation written up in a legal manner makes it easier for them to respect your wishes should you become incapacitated.
