A power of attorney (POA) is an important part of an estate plan because it identifies certain individuals who can make decisions on another person’s behalf. A POA can often address legal, financial or medical decisions.
For instance, someone could have a medical emergency. They are still alive, but they are incapacitated in the hospital. It is impossible for them to communicate with their medical team. Because those medical care providers still need to make important decisions, the POA identifies the agent that they should work with. When that agent makes a decision, the medical team should treat it as a decision made by the patient themselves.
Typically, no one else will have the legal ability to make these types of choices, so having the POA in place in advance helps to keep the process moving forward and gives guidance to those involved.
The role of incapacitation
A springing power of attorney is important because it ensures that a person does not give up any of their rights or decision-making abilities just by drafting the document and identifying their agent. The agent cannot step in and make decisions immediately. Instead, the POA only goes into effect if it is determined that the person has become incapacitated.
This is when they actually need the agent to act on their behalf. That triggers the document, shifting the legal power for crucial decision-making to another individual and helping the process move forward.
It is important to remember that estate planning is about more than just assets. It also needs to address future medical care. A POA is just one way to do this, and it is important to understand what legal options you have when drafting your estate plan.