Whether you’re retired or nearing retirement, it’s worth considering whether establishing a power of attorney makes sense. In some cases, having a power of attorney can be essential to protecting your assets and ensuring that your wishes are carried out if you cannot communicate them yourself. Here’s what you need to know about powers of attorney, how they work and when they might come in handy.

If you become incapacitated and can’t make decisions for yourself

Power of attorney grants authority to manage the affairs of an individual who can no longer make decisions themselves. This allows someone to act on the incapacitated individual’s behalf, allowing day-to-day matters to continue efficiently even in the absence of the original decision-maker. Whoever is appointed as your power of attorney will have significant responsibilities, so it’s imperative that you choose someone trustworthy who understands your wishes and values.

If you’re going to be out of the country and need someone to handle your affairs

If you are planning on traveling abroad, consider a power of attorney. By establishing a power of attorney, you can assign someone to handle your legal and financial matters while you are away. This person could be responsible for resolving any disputes that may arise while you are not present, and they could even perform physical tasks such as signing documents in your place.

If you have a lot of assets or property that need to be managed

Managing many assets and property can be a significant undertaking and can often require multiple actions to ensure things are done correctly and in the correct order. Many people in this situation may consider having a power of attorney as it can help simplify the process. With a power of attorney, someone will be authorized to act on your behalf to ensure that any decisions regarding managing your assets or property go smoothly and are legally valid.

If you have young children who need someone to make decisions for them

Nothing is more important than the security of your children. If you have young ones and cannot make decisions on their behalf, a power of attorney can be invaluable in ensuring they are receiving the care they need. This document allows someone you trust to make decisions regarding their education, health care and finances until you can do so again.

If you have elderly parents who need someone to manage their finances and health care

Understanding that you may have elderly parents who require someone to manage their finances and health care can be daunting. Ensuring that decisions are made in their best interests may pose a significant challenge as their abilities decline. Getting a power of attorney is the next logical step in this scenario, as it legally appoints someone else to make decisions when they no longer can.

Conclusion: Overall, a power of attorney can be invaluable for those who want to protect their assets and wishes. When deciding if a power of attorney is right for you, consider your specific needs and seek the advice of a qualified legal professional.

Lyle Boss, a native Utahn, is a member of Syndicated Columnists, a national organization committed to a fully transparent approach to money management. Boss Financial, 955 Chambers St., Suite 250, Ogden, UT 84403. Telephone: 801-475-9400.

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