When people in New York think about the future, they may want to plan for a range of possibilities. One of the most important documents that people can include in their estate planning process is a power of attorney. This document carries a great deal of power, and it is important that it is only given to a close, trusted person. However, experts often advise that any adult should have one or more types of power of attorney in place. Some powers of attorney may cover health care and medical decisions, while others may provide for financial decision-making.
In many cases, people draft powers of attorney to provide that authority to another person in case they become incapacitated. This means that in case of an accident or severe injury, another person would be able to handle that person’s finances and make health care decisions until they are able to do so again. This can prevent people from significant financial losses or unwanted health care decisions. However, it is also possible for people to grant a general power of attorney that can be used at any time.
Here, it may be particularly important to avoid this type of appointment or ensure that only very trusted loved ones or bonded professionals are provided with this power. While a power of attorney can provide significant peace of mind and protection from an emergency, dishonest people have used these documents to steal millions of dollars, especially from people who did not regularly manage their own finances.
Because a power of attorney can be so helpful, it may be important to have one on file, and it can be tailored for the creator’s protection. An estate planning attorney may work with a client to draft a specific power of attorney for designated situations that names a close, trusted person.