As you consider what documents and details should be in your future legal and financial plans, you will be wise to think beyond what happens to your personal property. While the distribution of your assets is a critical aspect of your estate planning efforts, there are important decisions you can make that will allow you to feel confident in the future. With certain estate planning tools, you can have a measure of control over certain medical and financial issues that may arise.
With specific types of power of attorney, you can account for your financial interests and medical needs in the event of an emergency or in case of your incapacitation. There are different types of powers of attorney, and you may find that one or all of these are helpful additions to your current long-term strategy. With the right plans in place, you will be able to look to the future with confidence.
Types of powers of attorney
The right choices for your estate plan depend on your specific goals for the future. The main goal of any type of power of attorney is to provide you with the opportunity to name a person, called an agent, to act in your best interests and on your behalf. The different types of powers of attorney include:
- General powers of attorney — General powers of attorney give your agent a wide range of authority over certain matters and the right to act on your behalf, including all legal and financial matters.
- Durable powers of attorney — These could provide limited authority or general authority for the agent to handle your affairs, but he or she would retain this authority even if you became incapacitated in the future.
- Specific powers of attorney — This provides your agent limited authority over only certain tasks, such as paying your bills, making certain financial decisions or selling your home, and only for a limited period of time.
Planning for a potential contingency during which you may not be able to speak for yourself can be overwhelming. You will benefit from discussing the possibility of adding a power of attorney to your estate plan with a knowledgeable Colorado professional who can provide insight and guidance regarding the best decisions for your individual situation. An assessment of your current estate plans and goals for the future can reveal what additions will be most beneficial for you.