A power of attorney (POA) has many applications, and everyone should consider drafting health care and financial ones as soon as possible. Life is unpredictable and having these two documents is an effective way to plan for the worst. Those without experience won’t know how to create comprehensive estate plans that protect their best interests; but, reading up on the topic—and seeking legal counsel—can help.

Do:

Choose an Agent Whom You Trust

You can name virtually anyone as the agent in a power of attorney. Because most people have quite a few loved ones to choose from, it is wise to give this decision serious consideration. Spouses are a popular choice for POA agents, as are adult children.

Specify the Rights in the POA

A POA can grant an agent various rights, so it is important to indicate the extent of authority that you want the individual to have. Unless you are drafting a durable power of attorney, you must also specify how long the arrangement should last and under what terms it is voided.

Review the Revocation Process

Barring incapacitation, individuals have the right to revoke a POA at any time. Understand the process involved before signing it, so you can act immediately if an issue arises. For example, upon updating a POA that addresses investment accounts, it is critical to notify the broker, advisor, and financial institution as soon as possible.

Don’t:

Forget to Implement a Backup Plan

If for some reason the agent is unwilling or unable to act on your behalf, who could step in as an alternate? It is wise to name a successor agent in every POA. For optimum protection, you should also include a POA monitor, which is someone who ensures the agent follows the terms of the arrangement.

Let Anyone Pressure You Into Signing One

If you have any doubts about giving someone the right to manage certain accounts, do not name him or her as an agent. Likewise, do not let anyone pressure you into including them in your estate planning documents. Instead, take a step back from the situation and consult with a seasoned attorney, who can advise you on ways to resolve the situation.

Delay

Estate planning is not just for the elderly or those at risk of serious injury. You may not have a dangerous job or any chronic health conditions, but you are taking a chance every time you get behind the wheel of a vehicle. Do not postpone drafting a power of attorney because anything can happen.

If you want to create a power of attorney, turn to Lance S. Cox Attorney at Law. Based in Cincinnati, OH, this estate lawyer has over three decades of experience helping clients plan for the future to protect their loved ones. Visit his practice online to review the estate planning services his legal team offers. To schedule an initial consultation, call (513) 528-6000 today.