Many people believe that estate planning is just about making the bigger decisions regarding your passing and how your assets are distributed. You may decide who your heirs are, who plays the role of the executor of your estate and how your funeral is conducted. With an estate plan, all your final wishes should be made.
You’re still young, so, in your mind, none of this should matter until you’re older. However, setting up your estate plan may still be extremely important even if you don’t have a large estate. Here’s what you should know:
Designating a power of attorney
Have you ever considered what would happen if you were put into a situation where you can’t make decisions for yourself? For example, if you were put into a medically induced coma after an accident or you developed a mental disorder. Your medical and financial decisions would be left unattended – unless you had a power of attorney.
A power of attorney is a role designated in your estate plan. Whoever you designate as a power of attorney would have control over your financial and medical decisions. This would only happen if you were incapacitated – with a few exceptions.
While a power of attorney may decide if you’ll undergo surgery or take medication – or, they may pay your rent, utilities and debt while you’re indisposed. They may also, depending on what kind of power of attorney you designate, make financial investments if you’re overseas and away.
You shouldn’t let your life be in the hands of someone you can’t trust, no matter what your age. You may need to reach out for legal help when planning out your estate.
