Reasons Why You Need a Power of Attorney in Arizona
When you go through the process of creating an estate plan, one of the first –and most important– steps is choosing a power of attorney. This legal document designates another person to make decisions on your behalf if you become unable to do so.
Oftentimes, our clients ask us if they really need a power of attorney and why it matters. While it may be tempting to cut corners, your estate plan is not where you want to take the easy way out. Today, our legal experts share a few key reasons why you need a power of attorney in Arizona as part of your estate plan.
What is a Power of Attorney?
As we mentioned, a power of attorney designates someone to make important decisions on your behalf. Some people like to grant a power of attorney for specific matters (see below), while others designate a general power of attorney for their assets.
The power of attorney is only valid if the principal (the individual making the arrangements) is mentally competent. Additionally, the agent (the person designated as power of attorney) can only step in once the principal is no longer capable of handling their own affairs.
Reasons Why You Need a Power of Attorney
A power of attorney comes into play in several critical areas of your life when major decisions need to be made. Below are some of the key reasons why you need a power of attorney as part of your estate plan.
Medical Decisions
If incapacitation prevents you from making your own medical decisions, your power of attorney will make them on your behalf. Some people will designate a specified healthcare power of attorney to handle matters like:
Medical care received
Doctors and care providers used
Where you live
What you eat
Who bathes you
Financial Decisions
A durable financial power of attorney manages your finances in the event that you’re unable to do so yourself. Specifically, they will:
Access your financial accounts to pay for healthcare, housing needs, etc.
File taxes on your behalf
Make investment decisions
Collect your debts
Manage your property
Apply for public benefits, like Medicaid, on your behalf
What Can’t a Power of Attorney Do?
Designating someone as your power of attorney grants them the ability to make important life decisions on your behalf. However, their power is not unlimited. A power of attorney cannot make changes to your Will or make postmortem decisions for you.
No agent can break their fiduciary duty to act in the principal’s best interest. Additionally, an agent cannot transfer their role to someone else. While they can decline their appointment at any time, your agent won’t get a say in who takes over their duties. The only exception would be if a co-agent was explicitly named by you in the original power of attorney document.
Best Estate Planning Lawyers in Phoenix, AZ
As you can see, there are some critical reasons why you need a power of attorney in Arizona. If you aren’t sure who you should choose as yours, know that the legal professionals at Rilus Law are here to help guide you through the process.
Our core values of mindfulness, empowerment, and passion guarantee that you and your loved ones will be treated like family when you work with us. Schedule your free consultation today to find out what we mean.
