Everyone, age 18 or older, needs powers of attorney to take care of matters if they become incapacitated.  If you don’t have powers of attorney and you become disabled, your loved ones will have to pay to go to court.

This is called “guardianship” (or “conservatorship,” in some states).  You may also have heard it called “living probate.”  The process is heartbreaking, stressful, time consuming, expensive, and public.  Most people want to avoid guardianship.

There are three main kinds of powers of attorney

If you have minor children, you need a child care power of attorney.  And, everyone needs both financial and medical powers of attorney.

Child care power of attorney

A child care power of attorney authorizes those you name as guardians in your will to care for your children during your lifetime if you are incapacitated.  This means that your chosen guardians will make welfare, medical, educational, and life-style choices for your children.

Remember, your will is not effective until you die.  If you don’t have a child care power of attorney in place, the courts will decide who will care for your children and it may not be who you would choose.

Financial power of attorney

The financial power of attorney appoints an agent (and successor agents) to act on your behalf if you are unable to manage your finances and your day to day business affairs.

The documents contains a laundry list of all kinds of authority that your agent has such as paying bills, managing investments, entering into contracts, selling real estate, making gifts, and the like.

Health care power of attorney

The health care power of attorney combined with a HIPAA release allows your chosen agent (or successor agent) to make health care decisions on your behalf if you are not able to make those decisions yourself.

To get these powers of attorney in place, consult with a qualified estate planning attorney.

Ryan, Hicks, Cumpton & Cumpton LLP is a member of the American Academy of Estate Planning Attorneys.

Have you been putting off creating your estate plan?  Many people just like you are waiting for the perfect time to start their planning.  Unfortunately, some people never even get the chance.  If you have yet to start your estate plan, now is the time to do so.

It’s important that you have a plan in place so that you’re protected for emergencies and unexpected events.  Take a look at some of the information below to better understand the importance of planning sooner rather than later. If you have any questions, meet with an estate planning attorney.

If you put off your planning, the following may happen:

• You and your family may have fears and uncertainty about the future.
• Your assets may be given to the wrong people.
• Your minor children may not be cared for by the guardian of your choice.
• Your medical wishes may not be followed.
• If you become terminally ill or disabled, your family may have to go to court in order to get permission to handle your financial affairs.
• If you become terminally ill or disabled, your family may not be able to help you make important medical decisions regarding your health.
• If you die, your loved ones may not have enough income needed to survive.
• If you die, your loved ones may argue and disagree about your funeral planning.

Don’t put off your estate planning! If you do, you and your loved ones may face negative consequences.  Now is the time to begin your planning.

If you have additional questions about the need to begin your estate plan as soon as possible or if you’d like to start your planning, consult with a qualified estate planning attorney.

Ryan, Hicks, Cumpton & Cumpton LLP is a member of the American Academy of Estate Planning Attorneys.