The advances in medicine over the last several decades are truly amazing. The effect is that people are living much longer now than they ever have. While this may seem like a good result, the reality is that because people are living longer there are more and more individuals who become disabled in their later years. As a result of this, each person should plan for their own disability in their estate planning by creating a valid Power of Attorney. Here are the three main reasons for having a Power of Attorney as part of your estate plan.
1. AVOID A COSTLY GUARDIANSHIP PROCEEDING
If a person has not completed a Power of Attorney and they then become disabled, it is too late for that person to complete their Estate Planning in a way that will help them during their life. When an adult becomes disabled without a Power of Attorney, the only way that an individual can obtain the authority to care for that person’s finances and property is through a guardianship proceeding. A guardianship proceeding is exactly what it sounds like. It is a court proceeding where evidence is taken and witnesses testify about the reasons they believe an individual should be named as the guardian. In the end a court will enter an order appointing a guardian.
Guardianship proceedings are expensive. The cost in Idaho for a guardianship proceeding can range anywhere from about $1,500 to tens-of-thousands of dollars if there is a disagreement or a fight.
2. AVOID POTENTIAL DISAGREEMENTS OR FIGHTS WITHIN THE FAMILY
This leads us to the second reason that having a power of attorney in your estate planning is important. When you have a valid Power of Attorney there is no reason for a guardianship proceeding to happen. This helps avoid disagreements or fights within the family about who should care for you and your money and property. When a valid Power of Attorney exists, it will be followed. This allows you to avoid family fights at a time when your family should be coming together to support you. This also helps you with reason number 3.
3. MAKE YOUR OWN DECISION ABOUT WHO YOU TRUST
The third reason why it is important to have a valid power of attorney in your estate planning is so that you have the ability to make a decision about who you trust to take care of you, your finances, and your property. You have the ability to create a succession of Planning by naming your first choice, a second choice and ultimately a third choice of who you would like to have take care of you and your finances and property through your power of attorney. If you do not complete a power of attorney you are giving up the ability for you to personally choose who will hold that power for you.
If you have questions about how a Power of Attorney can help you in your estate planning, we can help. Call us toll free at 877-232-6101 or 208-232-6101 for a consultation with Lane Erickson and the Racine Olson team of Estate Planning attorneys in Idaho. You can also email Lane Erickson directly at lve@racinelaw.net. We will answer your Idaho Estate Planning questions and will help you solve your Idaho Estate Planning problems.
This website includes general information about legal issues and developments in the law. Such materials are for informational purposes only and may not reflect the most current legal developments. These informational materials are not intended, and must not be taken, as legal advice on any particular set of facts or circumstances. You need to contact a lawyer for advice on specific legal issues.