Estate plans can address the challenges of advanced age and possible medical emergencies, not just what happens when someone dies. Powers of attorney are among the most valuable estate planning documents, but many people only establish powers of attorney when they have serious medical challenges.
However, older adults preparing for retirement could also benefit from establishing powers of attorney. Specifically, they may want to draft durable powers of attorney. Durable documents are slightly different from the baseline legal documents many people establish for financial protection and medical advocacy in the event of an unexpected emergency.
What separates a durable power of attorney from a simple power of attorney?
When do the documents lose authority?
The main difference between durable powers of attorney and standard powers of attorney is that the durable document retains its legal power for longer. Basic powers of attorney typically lose their legal authority when the principal who drafted the document dies, recovers from their medical condition or becomes permanently incapacitated.
Durable documents include special language that extends the useful life of the document to include permanent incapacitation. An individual diagnosed with dementia, for example, could derive protection from durable powers of attorney.
The agent or attorney-in-fact they selected can manage their finances and oversee their medical care for the rest of their life. Durable powers of attorney can help protect aging individuals and those with severe medical challenges from involuntary guardianships or conservatorship.
Sitting down to draft durable powers of attorney with a skilled legal team can be important for those concerned about incapacity as they age. Aging adults who address their elder law needs in advance can enjoy their golden years with greater confidence.
