When you add a power of attorney to your estate plan, you can make it unique by determining exactly what powers you’re turning over to your agent. Maybe you want them to be able to make medical decisions, or perhaps you want to give them the ability to access your financial accounts. You can decide exactly what powers and limitations they have, depending on how much control you want them to have over your life.
But naturally, you don’t want to give up this control at the time that you draft the power of attorney. To do so, it may be wise to use a springing power of attorney.
Something triggers the change
With a springing power of attorney, the difference is that there is a trigger. A certain condition has to be met before the power of attorney goes into effect. This means that you can draft it today without giving up your medical or financial decision-making ability, but you also know that you have an agent who is waiting to make those decisions if it becomes necessary.
The main triggering event that people use is a diagnosis of incapacitation. Say that they get injured in a car accident or suffer from a stroke or a heart attack. If they’re incapacitated and unable to make their own choices, only then does the agent take over. If the person recovers, the right to make these decisions reverts to them.
Plan carefully
Exactly how you draft a power of attorney will have a major impact on your estate plan and its effectiveness, so be sure you know what legal options you have and what steps to take.
