Trenton Power of Attorney
Learn What You Need to Know About Incorporating a Power of Attorney Into Your Estate Plan
If you have questions about putting together an estate plan, you may also have questions about creating a power of attorney. What is a power of attorney? Do you need one? What happens if you don’t have a power of attorney in New Jersey?
All of these are important questions, and answering these questions will be critical for making informed decisions during the estate planning process. Learn what you need to know from the estate planning lawyers at the Trenton office of Helmer, Conley & Kasselman, P.A.
Why It’s Important to Include a Power of Attorney in Your Estate Plan
We’ll start by explaining what a power of attorney is—and what it isn’t. Broadly speaking, a power of attorney is a document that allows someone else to make important decisions and sign important documents on your behalf. When you sign a power of attorney, you formally appoint someone as your agent, and as your agent, they must act in your best interests when the time comes.
A power of attorney is not a blanket authorization to make decisions and sign documents on your behalf. When you sign a power of attorney, you give your agent specific and clearly defined responsibilities, and you also clearly specify when these responsibilities come into play. In the estate planning context, this is generally when you are unable to make crucial decisions or sign important documents yourself—typically due to an incapacitating injury or a degenerative cognitive condition such as Alzheimer’s disease or dementia.
Powers of attorney generally address two key areas of decision-making and signature authority. When you sign a power of attorney, you can choose to address one or both of these key areas, and, again, it is up to you to decide how much authority you are willing to grant to someone you trust. These two key areas are:
- Healthcare Decision-Making – If you become incapacitated, you will need someone to make decisions about your medical care on your behalf. While you can make some of these decisions in advance by preparing a healthcare directive (more on this below), there may still be important decisions that you need someone to make for you.
- Financial Management – If you become incapacitated, you will also need someone to manage your finances on your behalf. This includes not only paying your bills, but also making sure that you do not unknowingly make unsound financial decisions or fall victim to scams or other predatory tactics.
Let’s say you become incapacitated and you don’t have a power of attorney in place. What will happen?
In this situation, you will still need someone else to make decisions for you, and this will most likely involve having a guardian appointed in court. Not only can this lead to unnecessary costs and stress for your family, but it also means that the person who is assigned to make decisions on your behalf won’t necessarily be the person you would have chosen yourself. Additionally, when you sign a power of attorney, you can talk to your appointed agent about your wishes. If you don’t know who is going to be making decisions on your behalf, you won’t have the opportunity to have these types of conversations.
A Power of Attorney is Not the Same as a Healthcare Directive
To be clear, a power of attorney is not the same as a healthcare directive. When you sign a power of attorney, you give someone else the authority to make decisions on your behalf under the circumstances specified in the document. When you sign a healthcare directive, you are making decisions about your healthcare in advance.
Both documents are essential for different reasons—and, when putting together your estate plan, you will most likely want to prepare both. With that said, it is important to make informed decisions based on your personal circumstances, and this is just one of several areas in which an experienced estate planning lawyer will be able to help you.
FAQs: Powers of Attorney in Trenton
Should Everyone Have a Power of Attorney in Their Estate Plan?
Including a power of attorney in an estate plan is a good idea in most, if not all, circumstances. Not only does it provide clarity for you and your family, but if you become incapacitated, it will also allow your family to avoid the costs associated with guardianship.
When Should I Sign a Power of Attorney?
It typically makes sense to sign a power of attorney when preparing your estate plan. With that said, if you have an estate plan and do not have a power of attorney, it is not too late to put one in place.
Should I Hire a Lawyer to Prepare My Power of Attorney?
Yes, it is important to hire a lawyer to prepare your power of attorney for various reasons. Among them, your lawyer can help ensure that you are carefully considering all of your options, and your lawyer can also help ensure that your power of attorney complies with the Health Insurance Portability and Accountability Act (HIPAA) and New Jersey law. Your lawyer can make sure your power of attorney does not conflict with your healthcare directive or any of your other estate planning documents as well.
Can I Change My Power of Attorney in the Future?
Yes, if you decide that you want to make any changes to your power of attorney, you are free to do so at any time (before you become incapacitated). If you have a power of attorney and would like to make changes, our lawyers can assist you.
Learn More from an Experienced Mercer County Estate Planning Lawyer at Helmer, Conley & Kasselman, P.A.
Do you have questions about signing a power of attorney in Trenton? If so, we strongly encourage you to speak with an experienced estate planning lawyer at Helmer, Conley & Kasselman, P.A. Call us at 877-435-6371 or tell us how we can reach you online to schedule an appointment today.
