A power of attorney can be set up to take effect exactly when you need it. You can specify the triggering event that gives legal power to the agent that you have selected. Often, this is done with a springing power of attorney.
For example, perhaps you want to make sure that you know who will handle your finances if you are unable to do so yourself. If you have a heart attack or a stroke and you end up in the hospital, for instance, it may be difficult or even impossible for you to handle these obligations yourself. That is when you need an agent to step in on your behalf and streamline the process.
With a springing power of attorney, you can stipulate that the agent only takes control of your finances if you are incapacitated. Once the medical team determines that incapacitation has occurred, then the agent gains their authority.
Why is this important?
This is important to many people because it allows them to effectively plan for the future. You want to choose an agent who can make decisions for you, but you do not want to simply give up that power unilaterally from the moment that you create your estate plan. Instead, it is a provision that can be used only when necessary.
After all, when drafting your estate plan, there is a chance that you may never become incapacitated. You will not need an agent to take over and make key decisions on your behalf. With a springing power of attorney, if the incapacitation requirement is never met, you have not given up any level of control. You can still make all of your decisions on your own.
Understanding exactly how to set up an estate plan is critical, so take the time to carefully look into your legal options while doing so.
