Estate Planning Blog

Serving Clients Throughout North Central Missouri

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Estate Planning Disasters and How to Avoid Them

August 26, 2026

Estate planning is designed to provide clarity and direction. However, poorly coordinated documents or outdated decisions can produce the opposite result. Ambiguous instructions, missing beneficiary designations and improper asset ownership may lead to delays, disputes, or outcomes that do not reflect a person’s wishes.

Whether you live in Macon, Missouri or elsewhere, many estate planning problems are avoidable. By reviewing documents regularly, keeping important information organized, and ensuring that each part of the plan works together, individuals can reduce the risk of costly mistakes and provide greater security for their families.

Failing to Create an Estate Plan

One of the most serious estate planning mistakes is assuming that planning is unnecessary.

Without a will or other appropriate documents, state law may determine how certain assets are distributed. This process may not reflect personal wishes or account for unique family circumstances.

A lack of planning can also leave loved ones without clear guidance regarding financial decisions, healthcare preferences, or the management of property.

Using Unclear or Unusual Instructions

Some people attempt to create highly specific or unconventional estate plans without considering how those instructions will work in practice.

Vague language may leave beneficiaries uncertain about what the person intended. Unusual conditions attached to inheritances may also be difficult to administer or could lead to disagreements.

Clear, practical instructions are often more effective than complicated provisions that create confusion.

Forgetting to Update Beneficiary Designations

Beneficiary designations can control the distribution of retirement accounts, life insurance policies and certain financial accounts.

These designations may take precedence over instructions in a will. As a result, an outdated beneficiary form could cause assets to pass to an unintended person even when the will says something different.

Beneficiary designations should be reviewed after major life events and as part of regular estate plan maintenance.

Choosing the Wrong Executor or Trustee

The people selected to manage an estate or trust can significantly affect how smoothly the plan is carried out.

Consider Ability and Availability

A trusted relative may not always have the organizational skills, financial knowledge, or availability needed to manage complex responsibilities.

Choosing someone based solely on family position can create difficulties if the individual is unable or unwilling to serve.

Name Backup Decision-Makers

A primary executor or trustee may become ill, move away, decline the role, or pass away before their responsibilities begin.

Naming qualified successors can help prevent unnecessary delays and reduce the need for court involvement.

Review Selections Over Time

Relationships and personal circumstances change.

Regularly reviewing fiduciary appointments helps ensure that the people named remain appropriate choices.

Failing to Coordinate All Estate Planning Documents

An estate plan is more than a will.

Trusts, beneficiary designations, property titles, powers of attorney, healthcare directives and financial accounts should work together. Conflicting instructions can create confusion and may undermine the purpose of the plan.

A coordinated review can identify inconsistencies before they cause problems.

Keeping Important Documents Hidden

A carefully prepared estate plan may be difficult to use if no one knows where the documents are stored.

Original wills, trust documents, financial records, insurance information and account details should be kept in a secure location. Trusted individuals should know how to locate them when necessary.

Providing access information does not require sharing every financial detail. However, it can prevent significant delays during an emergency or after a death.

Waiting Until a Crisis Occurs

Estate planning is often easier when decisions are made before illness, incapacity, or a family emergency.

Waiting until a crisis may limit available options and increase the risk that important documents cannot be completed or updated. Early planning allows individuals to consider their choices carefully and communicate their wishes without unnecessary pressure.

Protect Your Family from Avoidable Mistakes

Estate planning disasters are often caused by inaction, outdated documents, or a lack of coordination rather than a single dramatic error.

Creating a clear plan, reviewing it regularly and keeping trusted individuals informed can help prevent unnecessary conflict and protect the people who matter most. A thoughtful approach today can provide greater confidence that your wishes will be understood, and your legacy will be managed responsibly.

Key Takeaways

  • Clear instructions reduce conflict: Ambiguous or impractical provisions can create confusion and disputes.
  • Beneficiary designations require regular reviews: Outdated forms may produce unintended results.
  • Choosing the right fiduciaries is essential: Executors and trustees should be capable, trustworthy and prepared to serve.
  • Estate planning requires ongoing maintenance: Regular reviews help keep documents coordinated and current.

Visit our website www.MoTrustLaw.com to get more estate planning information and to subscribe to our complimentary e-newsletter.  Our e-newsletter is designed to provide valuable information to residents of Moberly, Macon, Kirksville, Salisbury, Columbia and surrounding areas.

Reference: Kiplinger (June 24, 2026) “Wills Gone Wild: How to Avoid Estate Planning Disasters”

elder law

The Three Pillars of Successful Estate Planning

August 13, 2026

Estate planning is often misunderstood as a process focused entirely on what happens after death. A successful estate plan protects individuals and families during life, prepares for unexpected events and ensures that assets pass according to personal wishes.

Whether you live in Salisbury, Missouri or elsewhere, while every family’s circumstances are unique, the most effective estate plans tend to rest upon three foundational pillars: incapacity planning, wealth transfer planning and regular plan maintenance. These components together help create a framework that can adapt as life changes.

Pillar One: Planning for Incapacity

Many people spend considerable time planning for what happens after death, while overlooking the possibility of becoming unable to manage their own affairs during life.

Illness, injury, or cognitive decline can affect anyone regardless of age or financial status. Preparing for these possibilities ensures that trusted individuals can step in when needed.

Durable Powers of Attorney

A durable power of attorney allows a trusted individual to manage financial matters if the creator becomes incapacitated.

Without this authority, family members may need to seek court involvement before handling important financial decisions.

Healthcare Directives

Healthcare directives allow individuals to communicate treatment preferences and designate someone to make medical decisions on their behalf.

These documents provide valuable guidance during stressful situations and help ensure that personal wishes are respected.

Pillar Two: Planning for the Transfer of Assets

The second pillar of estate planning focuses on how property will pass to loved ones after death.

Without proper planning, state laws determine who inherits assets and how estates are administered. A comprehensive plan helps ensure that personal wishes guide the process instead.

Wills and Trusts

Wills and trusts remain among the most important estate planning tools available.

Depending on family goals and financial circumstances, trusts may offer additional benefits such as privacy, probate avoidance and long-term asset management.

Beneficiary Designations

Retirement accounts, life insurance policies and many financial assets transfer directly through beneficiary designations rather than through a will.

Reviewing these designations regularly helps prevent unintended outcomes.

Pillar Three: Maintaining and Updating the Plan

An estate plan should evolve as life changes.

Marriage, divorce, births, deaths, business ownership, retirement and significant financial changes can all affect how an estate plan operates. Documents that were appropriate ten years ago may no longer reflect current circumstances or wishes.

Regular reviews help ensure that all components of the estate plan continue to work together effectively.

Communication Strengthens Every Estate Plan

Even the best legal documents benefit from open family communication.

Discussing important decisions with loved ones can reduce confusion and minimize the likelihood of disputes during periods of grief or stress. While not every detail needs to be shared, providing clarity regarding intentions often helps families navigate difficult transitions more smoothly.

Communication can become just as valuable as the documents themselves.

Estate Planning Is About More Than Wealth

Estate planning is not reserved for wealthy families or retirees.

Anyone with loved ones, financial accounts, healthcare preferences, or property can benefit from having a plan in place. Comprehensive planning protects independence during life and provides guidance and support to family members after death.

The earlier planning begins, the more options are typically available.

Building a Strong Foundation for the Future

Successful estate planning depends on more than a single document or strategy. By preparing for incapacity, organizing the transfer of assets and reviewing plans regularly, individuals can create a foundation that protects both their families and their legacies.

These three pillars provide the stability needed to navigate uncertainty, while ensuring that personal wishes remain at the center of every important decision.

Key Takeaways

  • Incapacity planning protects individuals during life: Powers of attorney and healthcare directives are essential documents.
  • Asset transfer planning protects loved ones after death: Wills, trusts and beneficiary designations help ensure that wishes are followed.
  • Estate plans require regular maintenance: Major life changes should trigger periodic reviews and updates.
  • Communication improves outcomes: Discussing intentions with family members can reduce future conflict.

Visit our website www.MoTrustLaw.com to get more estate planning information and to subscribe to our complimentary e-newsletter.  Our e-newsletter is designed to provide valuable information to residents of Moberly, Macon, Kirksville, Salisbury, Columbia and surrounding areas.

Reference: Kiplinger (June 15, 2026) “I’m a Wealth Planner: These Are the 3 Pillars You Need Before You Build Your Estate Plan”

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Maintain Quality of Life in the Face of a Dementia Diagnosis

July 20, 2026

Receiving a dementia diagnosis can be overwhelming for both the individual and their loved ones. Questions about future healthcare needs, financial security, living arrangements and independence often arise immediately. While the diagnosis brings significant challenges, it does not mean that quality of life must disappear.

Whether you live in Columbia, Missouri or elsewhere, early planning can make a meaningful difference. By addressing legal, financial and personal concerns before symptoms progress, individuals with dementia can maintain greater control over important decisions and create a roadmap that reflects their values and preferences.

Understanding the Importance of Early Planning

Dementia is a progressive condition that can affect memory, reasoning, communication and decision-making abilities over time. Because the condition often develops gradually, the period immediately following a diagnosis presents an important opportunity to plan.

Acting early allows individuals to participate actively in decisions regarding healthcare, finances, housing and caregiving. It also helps reduce uncertainty for family members who may eventually assume greater responsibilities.

Delaying these conversations can limit available options and increase the likelihood of court involvement if incapacity occurs before proper legal documents are in place.

Focusing on Quality of Life

A dementia diagnosis should not define an individual’s identity or limit opportunities for meaningful experiences. Maintaining routines, social connections and enjoyable activities can help support emotional well-being and preserve a sense of purpose.

Physical activity, cognitive engagement and regular social interaction may also contribute positively to overall quality of life. Families can play an important role by encouraging independence where appropriate, while providing support as needs evolve.

Open communication about preferences and priorities can help ensure that future care decisions align with the individual’s goals.

Legal Planning Creates Stability

One of the most effective ways to preserve autonomy is to establish legal protections before decision-making abilities decline.

Durable Powers of Attorney

A durable power of attorney allows an individual to designate a trusted person to manage financial and legal affairs if assistance becomes necessary.

This authority can help ensure that bills are paid, benefits are managed and financial obligations are addressed without unnecessary delays.

Healthcare Directives

Healthcare directives allow individuals to communicate treatment preferences and appoint someone to make medical decisions if they become unable to do so themselves.

These documents provide guidance during difficult situations and help reduce uncertainty for family members.

Regular Reviews Matter

Legal documents should be reviewed periodically as health conditions, caregiving needs and personal preferences change. Updating plans regularly helps ensure that they remain aligned with current circumstances.

Building a Strong Support Network

Managing dementia often requires collaboration among family members, healthcare providers, caregivers and community organizations. Establishing a reliable support network early can help reduce stress and improve coordination of care.

Support groups, adult day programs, transportation services and respite care can provide valuable assistance for both individuals living with dementia and their caregivers.

Families should not hesitate to seek help. Caregiving responsibilities can be demanding, and support services can play an important role in preventing caregiver burnout.

Financial Planning for Future Care Needs

Long-term care services can become increasingly important as dementia progresses. Whether care is provided at home, in an assisted living community, or in a skilled nursing facility, the costs can be substantial.

Evaluating insurance coverage, public benefits and available financial resources early can help families prepare for future expenses and avoid making decisions during a crisis.

Understanding how long-term care costs may affect retirement savings and estate plans is an essential part of comprehensive planning.

Preparing for Change while Preserving Dignity

Dementia often involves gradual changes rather than sudden transitions. This allows families time to adjust plans as needs evolve.

Discussing future housing preferences, caregiving arrangements and personal priorities before significant changes occur can help individuals retain a sense of control throughout the process.

Thoughtful planning does not eliminate uncertainty. However, it can make future decisions more manageable and less stressful for everyone involved.

Living Well after a Diagnosis

Although dementia presents significant challenges, a diagnosis does not mean that meaningful relationships, enjoyable activities and personal independence must come to an end. With proactive legal planning, financial preparation and strong support systems, individuals can continue to experience a sense of purpose and connection.

Focusing on what matters most and preparing for future needs can help families navigate the journey ahead with greater confidence and compassion.

Key Takeaways

  • Early planning preserves options: Addressing legal and financial issues soon after diagnosis provides greater flexibility
  • Quality of life remains important: Social engagement, routines and meaningful activities support well-being
  • Legal documents protect autonomy: Powers of attorney and healthcare directives help ensure that personal wishes are respected
  • Support systems are essential: Caregivers, community resources and professional guidance can improve outcomes

Visit our website www.MoTrustLaw.com to get more estate planning information and to subscribe to our complimentary e-newsletter.  Our e-newsletter is designed to provide valuable information to residents of Moberly, Macon, Kirksville, Salisbury, Columbia and surrounding areas.

Reference: Yahoo Finance (May 29, 2026) “Advisors Without Estate Planning Could Let ‘Money Walk Out the Door”

Approaching Retirement

Change Your Loved Ones’ Lives in Three Hours of Estate Planning

July 8, 2026

Many people postpone estate planning because they believe it is complicated, time-consuming, or something that can wait until later in life. Unfortunately, whether you live in Columbia, Missouri or elsewhere, delays often leave families scrambling to make important decisions during periods of grief, illness, or crisis. The reality is that a few focused hours spent organizing key documents and making critical decisions can dramatically improve outcomes for loved ones.

Estate planning is not simply about distributing assets after death. It is about creating clarity, reducing uncertainty, and ensuring that trusted individuals have the authority they need to act when necessary. Even basic planning can eliminate many of the obstacles families commonly encounter.

Why So Many Families Face Unnecessary Challenges

When someone dies or becomes incapacitated without adequate planning, family members are often forced to navigate legal, financial, and administrative issues with little guidance.

Important documents may be difficult to locate. Financial accounts may be inaccessible. Family members may disagree about responsibilities or the deceased person’s wishes. In some cases, court involvement becomes necessary simply because no clear instructions were left behind.

Many of these problems can be avoided through straightforward planning completed well in advance of any crisis.

The Most Important Decisions Often Take Less Time than Expected

People frequently assume estate planning requires months of preparation and extensive legal work. While complex estates may require additional planning, many individuals can make significant progress by focusing on a few core decisions.

Determining who should make financial decisions during incapacity, who should handle healthcare matters, and who should administer an estate are often among the most important steps.

Once these decisions are made, appropriate legal documents can be created to reflect those choices.

Essential Documents Every Adult Should Consider

A comprehensive estate plan may include numerous tools, but several documents form the foundation of most plans.

A Will

A will allows individuals to specify how assets should be distributed after death and identify the person responsible for administering the estate.

Without a will, state law generally determines how assets are distributed, which may not reflect personal wishes.

Powers of Attorney

Durable powers of attorney authorize trusted individuals to manage financial and legal affairs if the principal becomes incapacitated.

These documents can help families avoid delays and reduce the likelihood of court-supervised guardianship proceedings.

Healthcare Directives

Healthcare directives communicate medical preferences and identify who should make healthcare decisions when an individual cannot speak for themselves.

These documents guide difficult situations and help ensure that personal values are respected.

Organization Is Just as Important as Documentation

Creating legal documents is only part of the process. Family members should also know where important records are located and how to access critical information when necessary.

Account information, insurance policies, property records, and contact information for advisors should be organized and updated periodically. Even the best estate plan can create complications if loved ones cannot locate essential documents.

A simple system for storing and communicating this information can save considerable time and frustration.

Estate Planning Benefits the Living

Many people view estate planning primarily as a tool for transferring wealth after death. However, some of its greatest benefits occur during life.

Proper planning can ensure that bills continue to be paid during periods of incapacity, healthcare decisions can be made without delay, and loved ones have clear authority to assist when needed. These protections become increasingly important as people age.

Planning ahead helps preserve both independence and peace of mind.

Small Efforts Can have Lasting Impact

One reason estate planning is often postponed is that people underestimate the consequences of failing to act. Yet even modest planning efforts can significantly reduce burdens on family members.

Making key decisions, completing foundational documents, and organizing important records often requires far less time than people expect. The benefits, however, can last for years and provide invaluable support when challenges arise.

The goal is not perfection but preparation.

Giving Your Loved Ones the Gift of Clarity

Estate planning is one of the few opportunities people have to make difficult decisions easier for those they care about most. By investing a few hours in thoughtful preparation, individuals can reduce confusion, minimize legal complications, and provide meaningful guidance during difficult times.

The result is often far greater than the time invested. It is a plan that helps protect loved ones and provides a clearer path forward when it matters most.

Key Takeaways

  • Estate planning does not have to be overwhelming: Basic planning can often be completed in a relatively short amount of time
  • Core documents provide critical protection: Wills, powers of attorney, and healthcare directives address essential concerns
  • Organization matters: Families benefit when important records are accessible and up to date
  • Planning reduces future stress: Clear instructions and legal authority help loved ones navigate difficult situations

Visit our website www.MoTrustLaw.com to get more estate planning information and to subscribe to our complimentary e-newsletter.  Our e-newsletter is designed to provide valuable information to residents of Moberly, Macon, Kirksville, Salisbury, Columbia and surrounding areas.

Reference: Kiplinger (March 24, 2026), “Think You’re Too Busy to Do an Estate Plan? In 3 Hours (Seriously), You Could Save Your Heirs Months (or Years) of Stress and Heartache”

estate planning for Retirement

Is Your Family Prepared for an Unexpected Tragedy?

May 23, 2026

Dear Friends,

You can’t prevent a rainstorm by taking an umbrella. However, you can prevent an unexpected event from being made worse. The article “5 Ways to Prepare Your Family Financially in Case of a Tragedy,” from GO Banking Rates outlines steps to take.

Have an emergency fund. Most Americans don’t have one. However, you can be the exception. Most families report being unable to cover an emergency requiring $1,000. Even if you can’t manage to set aside three to six months’ worth of living expenses, having some funds in the event of a tragedy is better than turning to high-interest credit cards and incurring debt.

Make sure beneficiary designations have been set or updated. Most financial accounts allow for beneficiaries to be named. This is an extremely simple step. However, failing to do it can create additional stress for family members. How and when property is distributed varies by account type.  However, if beneficiaries are named, they can access funds relatively quickly. The same is true for proceeds from a life insurance policy or retirement accounts.

Have an estate plan created by an experienced estate planning attorney. Estate plans are something every adult should have. Whether they live in Missouri or elsewhere, most Americans don’t have an estate plan, which causes all kinds of problems for them. Without a will, a trust, a power of attorney for finances and a power of attorney for health care, the family will need to go to court, incurring unnecessary expenses, stress and delays.

An estate plan includes planning for incapacity. If a person is injured or becomes incapacitated because of a sudden illness, family members are not automatically permitted to talk with doctors, be involved with medical decisions, or contact health insurance representatives. Even spouses are not automatic contacts. Planning for incapacity also clarifies wishes for end-of-life care if someone is terminally ill or will not recover from an injury. Having advance directives for incapacity clarifies your wishes, enables loved ones to act on your behalf and spares your family a lifetime of questions.

Documents need to be organized. The stress of a tragedy makes clear thinking next to impossible. Trying to find financial documents, passwords for online accounts, or legal documents in the middle of an emergency only adds to the chaos. Getting organized ahead of time, having the correct documents and telling a trusted person where they can be found will alleviate some of the stress following a tragedy.

Make sure you have the right insurance policies. No one is too young for life insurance, especially if they have minor children. If a breadwinner dies suddenly, a life insurance policy will provide income for the family. There are also smaller life insurance policies to cover the costs of burial and funeral services, which can easily exceed $10,000.

Life happens, and often it’s not the life one expects. Being prepared, with an estate plan, life insurance and organized documents, is part of being a responsible, caring adult. Start by scheduling an appointment with an estate planning attorney and getting your estate plan started.

Visit our website www.MoTrustLaw.com to get more estate planning information and to subscribe to our complimentary e-newsletter.  Our e-newsletter is designed to provide valuable information to residents of Moberly, Macon, Kirksville, Salisbury, Columbia and surrounding areas.

Reference: GO Banking Rates (April 18, 2026) “5 Ways to Prepare Your Family Financially in Case of a Tragedy”

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Guide to Incapacity Planning: Protecting Yourself and Your Estate

February 21, 2024

Incapacity planning is a crucial aspect of managing your estate and ensuring that your wishes are honored if you cannot make decisions for yourself. This article will examine the various components of incapacity planning, offering comprehensive advice for anyone looking to secure their future.

What Is Incapacity Planning?

Incapacity planning involves preparing legal documents and making decisions in advance should you become unable to manage your affairs due to illness, injury, or other reasons. This process ensures that your financial, health and personal preferences are respected and handled according to your wishes.

Understanding the Basics

Incapacity planning isn’t just for the elderly; unexpected life events can happen at any age. It’s about taking control of your future, regardless of what may happen. This planning includes choosing who will make decisions on your behalf and outlining your wishes for medical treatment and financial management.

The Importance of Early Planning

The best time to plan is now. Waiting until you’re incapacitated leaves your loved ones with difficult decisions and could lead to court involvement. Early planning ensures that your wishes are clear and legally documented.

What Is a Power of Attorney?

A Power of Attorney (POA) is a legal document allowing you to appoint someone to handle your affairs if you cannot. There are different types of POAs, each with specific functions.

Financial Power of Attorney

This document grants someone authority to manage your financial matters, from paying bills to handling investments. Choosing someone trustworthy and capable of managing your finances effectively is essential.

Medical Power of Attorney

Also known as a healthcare proxy, this allows someone to make medical decisions on your behalf. Discussing your wishes with this person is crucial, ensuring that they understand your preferences for medical treatment.

What Role Does a Trust Play in Incapacity Planning?

A trust is a legal arrangement where a trustee holds assets on behalf of a beneficiary. Trusts can be particularly useful in incapacity planning.

Revocable Living Trust

This type of trust allows you to maintain control over your assets while alive and capable. In the event of incapacity, a successor trustee can manage the trust assets according to your wishes.

Using Trusts to Avoid Guardianship

By setting up a trust, you can avoid needing a court-appointed guardian or conservator, since the trust’s instructions will guide how your assets are managed.

How Can I Ensure That My Medical Wishes are Respected?

Documenting your healthcare preferences is a vital part of incapacity planning. This ensures that your medical treatment aligns with your values and wishes.

Living Wills and Healthcare Directives

A living will or healthcare directive outlines your wishes for medical treatment, including end-of-life care. This can include specific instructions on issues, like life support and feeding tubes.

HIPAA Authorization

The federal Health Insurance Portability and Accountability Act (HIPAA), known as the Privacy Rule, gives individuals rights over their health information and sets rules and limits on who can look at and receive a person’s health information. A HIPAA authorization is a legal document that enables your healthcare providers to share your medical information with the individuals you’ve designated.

Healthcare Surrogate or Medical Agent

While the HIPAA authorization allows chosen individuals to receive or view your healthcare information, a healthcare surrogate or medical agent is an authorized individual who can make decisions for your medical care when you cannot.

What Happens If I don’t have an Incapacity Plan?

Without a plan, your family may face legal hurdles and difficult decisions. They may need to seek guardianship or conservatorship, which can be time-consuming, expensive, and stressful.

The Risk of Court Intervention

Without proper documents, a court may appoint someone to make decisions for you who might not align with your preferences. This can lead to family disputes and added emotional stress.

Ensuring Your Wishes are Followed

An effective incapacity plan helps avoid these issues, ensuring that your wishes are known and respected and that someone you trust makes decisions on your behalf.

How Do I Choose the Right People to Act on My Behalf?

Choosing the right individuals to make decisions for you is crucial. They should be people you trust, who understand your values and are willing to act in your best interests.

Selecting a Health Care Proxy

Your healthcare proxy appointee should understand your medical preferences and be willing to advocate on your behalf, even under challenging circumstances.

Choosing a Financial Proxy

Selecting someone with financial acumen and integrity is essential for managing your financial affairs. This person should be organized, responsible and understand your financial goals well.

Can Incapacity Planning Reduce Estate Taxes?

While incapacity planning primarily focuses on managing your affairs during life, it can also affect estate taxes. Proper planning can help manage your estate efficiently, potentially reducing tax liabilities.

Summary: Key Points to Remember

  • Start Early: Don’t wait until it’s too late to start planning.
  • Appoint Trusted Individuals: Choose people you trust to make decisions on your behalf.
  • Document Your Wishes: Clearly outline your healthcare and financial management preferences.
  • Consider a Trust: Trusts can provide a streamlined way to manage your assets if you become incapacitated.
  • Legal Advice: Consult an estate planning attorney to ensure that your plan meets your needs and complies with legal requirements.

Incapacity planning is not just about protecting your assets; it’s about ensuring your wishes are honored and providing peace of mind for you and your loved ones. With the right planning, you can safeguard your future, no matter what it holds.

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Do You Need a Power of Attorney as Part of Your Estate Plan?

February 12, 2024

When created by an experienced estate planning attorney, a Power of Attorney (POA) is a legally binding estate planning document providing the person (principal or grantor) the ability to appoint someone else to act on their behalf in legal and financial matters. A POA can be created for any adult, according to the article “Choose wisely when selecting an agent for a power of attorney” from News Tribune.

POAs are generally state-specific, meaning they must adhere to the state’s laws where the grantor is a resident and follow their state’s law. The laws differ from state to state, so a local estate planning attorney is necessary.

The POA is usually created as part of a comprehensive estate plan. It’s best to do this before a person becomes ill or when a disability occurs. Everyone should have a POA, so someone else can manage their affairs if needed.

The person assigned to represent the grantor is known as an “agent” or an “attorney-in-fact.” They serve as an agent under the terms of a POA.

There are several different types of POAs. Some become effective the moment they are executed, which means they are signed with the required witnesses present. Others spring into effect upon a specific event or an expressed date identified in the POA and are called “Springing POAs.”

Some POAs are used for short-term situations, such as if a person is undergoing surgery and won’t be able to take care of their own business for a period of time. Regardless of the length of time, the agent is a fiduciary, meaning they are required by law to put the grantor’s interests ahead of their own. They need to be responsible, trustworthy and a good communicator. They must be 18 or older.

An estate planning attorney will help you determine whether the person you are considering naming your agent is a good choice. Someone who is a convicted felon, suffers from chronic financial issues, or is unable to manage their own life successfully is not a good candidate. Making this choice wisely avoids many future difficulties. For many people, their agent is a parent, adult child, or close family friend.

A very important step in the process is to ask the person ahead of time if they are comfortable acting as an agent on your behalf.

You may appoint multiple people to serve as your agent. However, to avoid possible conflict; it would be wise to have the POA documents express specific responsibilities for each person. If the agents disagree, it will be difficult for them to get tasks completed.

There are several types of POAs, and their powers are enumerated in the document. A general, durable, or limited POA includes financial and healthcare POAs. A durable POA is in effect whether the person is alive and well or incapacitated. A Limited POA can be used to give someone a specific purpose. The healthcare POA is used to make medical decisions on behalf of the grantor.

A health emergency is not the time to discover you don’t have a healthcare POA. Without a POA, family members or loved ones must go to court to obtain authority to address financial matters and make medical decisions. Instead, have your estate planning attorney create the POA documents needed to meet your needs.

Reference: News Tribune (Jan. 8, 2024) “Choose wisely when selecting an agent for a power of attorney”

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