What is a Power of Attorney & Why Do I Need One?

Having control over your health and finances can be empowering. However, there may come a day when you won’t be able to make decisions for yourself due to age, illness, or other circumstances that may arise in the future. That’s why having a power of attorney in place is crucial to anyone’s healthcare and financial planning, even if you are young and healthy. 

Many young adults in Kentucky don’t think they need a power of attorney. In fact, only 41% of millennials have such a document. What they don’t realize is that having this document in place before you need it can save your family time, money, and heartbreak. Elder Law Lawyers is here to guide you when you’re ready to take this vital step in planning for your future. 

What is a Power of Attorney?

Put simply, a power of attorney (POA) is a legal document granting an individual the ability to make financial or medical decisions on your behalf if you are incapacitated. This individual, often called an “agent” or “attorney in fact,” can be a partner, family member, or friend. This document ensures your wishes are granted, even when you cannot verbally express them, by giving your agent instructions to make decisions and financial transactions as needed. 

For those needing documentation regarding their healthcare, a healthcare power of attorney can be created. It is a type of advance directive that, like a general power of attorney, allows you to name someone, often called a healthcare surrogate or proxy, to make medical decisions for you when you cannot speak for yourself. Regardless of what type of power of attorney you need, an estate planning lawyer can help you create one tailored to your unique situation. 

Decisions & Transactions Your Power of Attorney Can Make

Beyond making medical decisions on your behalf, which is what most people think of when they think of a power of attorney, your agent can take other actions on your behalf, such as those related to:

• Real estate and property 
• Tangible personal property (ex., vehicles, furniture, etc.)
• Banking and investments
  • Stocks
  • Bonds
  • Commodities
  • Options
• Insurance and annuities
• Estate transactions
• Personal and family matters
• Benefits from:
  • Social Security
  • Medicare
  • Medicaid
  • Other government programs
• Taxes

While it may seem like you’re giving up a great deal of control with a power of attorney, you’re really not. As long as you can make decisions and express your desires, your agent cannot determine your actions or any part of your life.

If you wish to limit the types of decisions your agent can make, please consult with an estate planning attorney, like those at Elder Law Lawyers. They can help you determine what your needs are and how to best meet them.

Frequently Asked Questions About Powers of Attorney

Besides the belief that they don’t need a power of attorney because of their age or health, many people are further discouraged by the confusing and overwhelming nature of creating one. 

To make creating a power of attorney easier, the legal team at Elder Law Lawyers is here to answer any questions you may have. Here are some common questions we hear from clients about powers of attorney.

1. When do I need a power of attorney?

While age and illness are common reasons individuals create a power of attorney, it is best to have this document in place well before it is needed. We recommend that all adults, regardless of health or life stage, have a power of attorney. 

2. Who should I appoint as my agent in my power of attorney?

Choosing your agent for your power of attorney can be challenging, especially if you are single, childless, or have a non-traditional family structure. Ideally, you should appoint someone you trust who lives near you and can take on this role. Typically, this person is a partner, family member, or close friend. 

Once you’ve selected your agent, you need to discuss the specifics of your power of attorney with them so they understand your wishes and can tell you whether they are willing to take on this responsibility. You want to appoint someone with the time and energy to make these decisions. 

3. What types of power of attorney are available?

There are three main types of powers of attorney, which include:

• Durable Healthcare 
• Durable General 
• Limited or Special 

Each type has its own benefits, depending on your personal situation. An estate planning lawyer, like those at Elder Law Lawyers, can discuss these options with you and help you determine which is best for you. 

Take Control Over Your Future With Elder Law Lawyers

Regardless of which option you choose, a power of attorney is a proactive way to plan for your future. To be sure your wishes are made known, it is important to work with a law firm specializing in powers of attorney, like Elder Law Lawyers in Lexington, KY. Contact us today to get started on your power of attorney.

Get a Power of Attorney in Kentucky from Elder Law Lawyers

When you’re ready to take control of your finances, health, and future, schedule a consultation with the estate planning team at Elder Law Lawyers. We’ll help you make a proactive plan for your future with a power of attorney. Contact us online or call us at 859-543-0061 to get started today!